The focus of this research is on management's communication of uncertainty (attested to by auditors) and the potential for miscommunication due to the communication mode used in accounting disclosures. The following two research questions are addressed: First, do users of financial statements differentiate between the three levels of uncertainty from SFAS No. 5 when either specific verbal expressions or corresponding numerical probability ranges are used? Second, are there decision or judgment differences when numerical probabilities replace verbal expressions in communicating these uncertainties? / The above two research questions are investigated using a between-subject 3 x 2 factorial design. The first independent variable is the level of uncertainty. It has three levels which correspond to the three levels defined in SFAS No. 5--remote, reasonable possible, and probable. The second independent variable is the mode of communication. It has two levels--verbal expression and numerical probability range. The dependent variable is the revised risk assessment, which is defined as the risk assessment made by the loan officers after they received the uncertainty information. The subjects for this study were commercial loan officers from a major regional bank. / The statistical analysis of variance was performed to test both research questions. The level of uncertainty and the mode of communication main effects were significant for the amount of risk revision as the dependent variable (the difference between the initial risk assessment and the revised risk assessment). / Source: Dissertation Abstracts International, Volume: 53-03, Section: A, page: 0872. / Major Professor: Rhoda C. Icerman. / Thesis (Ph.D.)--The Florida State University, 1992.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_76575 |
| Contributors | Capriotti, Kim Boylan., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 110 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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