Lenders' and Accountants' Perceptions of the Information Risk Reduction Provided by Prescribed Procedures

183 p.Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1986.The purpose of this thesis is to investigate bank loan officers' and accountants' perceptions of the information risk reduction that results when accountants perform different procedures. Twenty-three accountants' and seventeen bank loan officers' perceptions were studied on three dimensions of conformity with GAAP (appropriateness of accounting principles to the circumstance, adequacy of informative disclosures, and freedom from material misstatement). Customer specific information was manipulated to create two cases, one with a relatively high level of initial information risk and one with a lower level.Five independent varibles were employed in an overall 2 x 2 x 3 x 2 x 2 split-plot factorial design (occupations x cases x studies of internal control x tests of details x analytical review procedures) with subjects serving as blocks. Paired t-tests between procedure treatment combinations also were performed and partial individual 3 x 2 x 2 ANOVAs were constructed to model each subject's perceptions.As expected, I found evidence that perceptions of information risk reduction can be varied by specifying the procedures performed. In addition, perceptions of the information risk reduction provided by the performance of a set of procedures was not found to differ significantly between cases. However, perceptual differences between occupation groups were found, implying that misperceptions of the risk reduction provided by the performance of procedures may exist.U of I OnlyRestricted to the U of I community idenfinitely during batch ingest of legacy ETD