Search

We investigate whether non-miserly cognitive styles mediate the effects of cognitive ability and thinking dispositions on rational thought. Specifically, we review relevant literature on two dimensions that define non-miserly cognitive style: reflection-impulsivity and analytic-intuitive. We use these two dimensions to identify a continuum of cognitive styles that vary from miserly (impulsive-intuitive) to non-miserly (reflective-analytic) and are congruent with tendencies to commit specific rational thinking errors. Further, we argue that this continuum, which we label reflective-analytic cognitive style, mediates the effect of cognitive ability and thinking dispositions on rational thought. We conduct an experiment testing our predictions and find evidence, via structural equation modelling, that reflective-analytic cognitive style does mediate the effect of cognitive ability (as measured by working memory capacity) and thinking dispositions (as measured by need for cognition and actively open-minded thinking) on responses to traditional rational thinking tasks. [ABSTRACT FROM AUTHOR]

The auditor reputation hypothesis states that auditors conduct high‐quality audits to build a positive reputation in the marketplace so that they can retain clients and earn fee premiums. We consolidate the dispersed literature on this hypothesis and introduce a framework that presents auditor reputation as a cycle. The overall conclusions support the predictions of our framework regarding reputation as an incentive for audit quality. However, challenges remain in isolating and quantifying the impact. We observe moderating factors on both the supply and demand sides. We also find that existing research has emphasized certain aspects of our framework while addressing others more sparsely. Relatively little is known about how audit firms earn their reputation or how they rebuild it after an audit failure. Mixed evidence in some areas, along with research gaps in the framework, provides opportunities for future research on auditor reputation. Our framework can guide these endeavors. [ABSTRACT FROM AUTHOR]