Brad Tuttle

AN EMPIRICAL EXAMINATION OF COBIT AS AN INTERNAL CONTROL FRAMEWORK FOR INFORMATION TECHNOLOGY

Abstract One commonly used framework for developing and evaluating technology intensive information systems is CobiT. This framework was originally a benchmark of best control practices developed and maintained by the Information Technology Governance Institute, the umbrella organization to the Information Systems Audit and Control Association. We empirically examine the conceptual model that underlies the CobiT internal control framework as it applies to an audit setting (including operational, compliance, and financial audit settings). We find that superimposing CobiTs conceptual model onto audit relevant assessments made by a panel of highly experienced IT auditors confirms the internal consistency between the underlying constructs of CobiT. Furthermore, we find that CobiTs conceptual model predicts auditor behavior in the field related to their seeking help and giving help as evidenced by their postings to a general IT audit listserv. Given the results of this study, we propose future research aimed at developing a general theory of internal control applicable to information technology based on CobiT.

The Effects of Information Presentation Format on Judgment and Decision Making: A Review of the Information Systems Research

ABSTRACT: This paper reviews the information systems and accounting information systems research on the effects of information presentation format on judgment and decision making. We limit our review to static (noninteractive) formats only, where the user cannot manipulate or change the characteristics of the task, including information presentation format. We provide a conceptual framework, describing the role of information presentation in individual decision making. Additionally, we develop an integrated model of information presentation research based upon the theory of cognitive fit, and use the model to summarize the prior literature and provide suggestions for future research.

The effects of a modest incentive on information overload in an investment analysis task

Abstract This paper investigates the effects of performance based monetary incentives on cue usage within the information overload paradigm. Participants suggested appropriate stock prices for hypothetical companies based on either six or nine non-correlated information cues. The presence of monetary incentives motivated increased response times compared to participants who did not receive incentives. This in turn resulted in higher levels of information usage than has been observed in previous studies. The results support the view that information processing capacity imposes a limit on the amount of information processed per unit of time rather than on the amount of information that can be processed in total.

An examination of market efficiency: Information order effects in a laboratory market

Abstract A series of laboratory double auction experiments is conducted to examine whether the order of information releases affects market prices. Behavioral research on belief revision has shown that individuals are influenced by the order in which a series of information items is presented. The experiments are designed to provide a controlled investigation of whether order effects as displayed by individuals also can influence prices in a market setting where outcomes are not a simple aggregation of individual behavior. Significant evidence is found of a recency effect in the experimental asset markets.

The Effects of Information Overload on Software Project Risk Assessment

Managers are responsible for providing effective information technology governance of the software development process. Ineffective governance leads to serious resource misallocations and negative consequences concerning Sarbanes-Oxley compliance. In order for managers to make informed decisions about software development projects, they often need more information than is available through normal information channels, that is, they need an in-depth review of the at-risk project. Such in-depth reviews, however, are costly. Hence, accurate identification of at-risk projects for in-depth review is critical to managements ability to govern. This research considers how two factors, information load and time pressure, affect the quality of the project-selection process. We examine quality by observing the decision strategies involved and then relating these strategies to subsequent decision making. An experiment was conducted with experienced information systems auditors using a combination of policy-capturing and computerized process-tracing techniques. The participants in our study cope with information overload by accelerating their decision-making process and adopting noncompensatory decision processes. Contrary to prior research, our process-tracing analysis suggests that participants rarely filter information, thus implying that decision makers are unable to process all the information. Coping by resorting to noncompensatory strategies did not decrease decision quality unless combined with accelerated information processing. Participants also increase their weight on the software project risk factors that they repeatedly access and that they view for longer periods of time. The theoretical contributions and practical implications regarding what actions managers can take to reduce the negative impact of information overload are discussed.

A heuristic-systematic model of end-user information processing when encountering IS exceptions

IS exception management often relies on end-users for success. A key aspect of end-user management of IS exceptions is sufficient information processing before responding. However, end-users process information dynamically across different judgmental contexts and sometimes favor effort reduction over accuracy maximization. With todays IS tightly meshed with underlying organizational business processes, inappropriate end-user responses pose organizational risks. We therefore developed a theory-based research model which was designed to uncover the motivational mechanisms needed to provide effective information processing in this context. Empirical testing using 318 experienced users of Microsoft Excel supported our model.

Managing impressions using distorted graphs of income and earnings per share: The role of memory

This study investigates the role that memory plays in interpreting and using distorted graphs that mislead the user of the financial information. It draws upon the literatures concerning memory, impression management and effective graph design. In order to examine whether reliance on memory for distorted graphs leads to different impressions of the data, we conduct an experiment in which we manipulate the type of graph distortion and whether memory of the graph is required by the decision. We present evidence that individuals receiving misleading graphs are more likely to misinterpret underlying data trends and that memory moderates the effect depending upon the type of distortion used to mislead the individual. The resulting data interpretation errors lead to more positive judgments and investment decisions than would otherwise be warranted. Thus our findings suggest that graph distortions mislead users into incorrect conclusions about the underlying data and that these interpretation errors persist in memory and affect judgments and investment decisions. We extend the prior literature, which has not considered the direct effects of graph interpretation or the effects of memory, and provide a baseline for investigating the effects of memory on impression management.

Part-set cueing effects in a diagnostic setting with professional auditors

The aim of this research is to examine the generality of the part-set cueing effect, a well-known memory-inhibition phenomenon in basic research, to professional problem diagnosis. Three experiments were conducted. Experiment 1 examines whether part-set cueing affects the ability of auditors to recall diagnoses, and if so, whether memory inhibition is affected by the plausibility of the hypotheses. Experiment 2 examines whether the part-set cueing effect is sensitive to changes in the symptoms that drive the diagnosis and whether differences in inhibition occur because of prompt plausibility or because of target plausibility. Experiment 3 extends the findings of the first two experiments to hypothesis generation and discriminates between competing accounts for the part-set cueing effect. The results show that part-set cueing effects occur during hypothesis generation and that they are robust to changes in the symptoms. However, the results from the experiments reveal an asymmetric inhibition effect. Inhibition is significant when prompts contain low plausibility hypotheses that are also high in severity. When prompts consist of high plausibility or low severity hypotheses, no inhibition is observed. These findings are considered to be consistent with an editing account of the part-set cueing phenomenon. The implications of these findings to problem diagnosis and decision aids are discussed. Copyright

The acquisition of price-relevant domain knowledge by a market

Through the application of policy capturing techniques in an experimental market, we provide an initial investigation into the process whereby individual domain knowledge is combined into market domain knowledge. We conduct a series of two-phase experiments where subjects are presented with actual financial information based on 20 publicly traded companies. In the first phase, subjects make individual decisions regarding the price of each companys stock. In the second phase, they participate in a computerized double auction asset market trading shares in the same 20 companies. We then model each individuals information usage and identify individual knowledge functions as well as model the markets information usage and identify the market knowledge function. We find that the aggregate market knowledge function is well characterized by a simple averaging of the knowledge functions of the participants.