Presentation2 on behavoural auditing.pptx

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1. Behavioural and Social Auditing Literature study Submitted by: Shweta Choudhary

2. Behavioural Auditing This concept emerged in the 1970s and focuses on the decision-making behaviours of auditors. It examines how auditors gather and evaluate evidence, considering factors like heuristics and cognitive biases that influence their judgments. The goal is to understand how auditors’ behaviours impact the audit process and outcomes. A behavioural audit is a comprehensive evaluation of a product, service, or company initiative, grounded in behavioural science research. Developed by Jason Hreha , an applied behavioural scientist, this method scrutinizes the factors that may impact human behaviour, decision-making, and motivation within an organization or its target audience. The primary objective of a behavioural audit is to identify potential areas of improvement and offer evidence-based recommendations for enhancing performance , user experiences, and fostering positive behavioural change. By employing behavioural science principles and insights, organizations can gain a deeper understanding of the psychological, social, and emotional factors that influence behaviour and make well-informed decisions to support their strategic objectives. Behavioural and Social Auditing

3. Social auditing   It evaluates factors such as charitable giving, volunteer activities, energy use, transparency, work environment, and worker pay and benefits. Social audit is a tool that helps government departments and organizations plan, manage, and measure their non-financial activities. It looks at both the positive and negative impacts of these activities on people and communities. Essentially, it provides a way to understand how well an organization is meeting its social goals and serving the public. By reviewing how well an organization follows its stated values and goals, social audits assess its social, economic, and environmental benefits. This process involves regular checks and feedback from various stakeholders like employees, clients, and the general public to ensure the organization is truly benefiting society.

4. INTENT The primary goal is to review and categorize behavioural auditing research from 1990-2010, focusing on: Audit review and documentation, Decision-making and auditor judgment, Auditor characteristics and performance, Auditor-client relationship. Contemporary Issues in Behavioural Auditing: A Review of Behavioural Audit Research Muhasebe Bilim , Dünyası Dergisi

5. PROCESS 1. Audit Review and Documentation: Agoglia et al. (2009) found that auditors with specific task experience struggled to spot control weaknesses when using a certain documentation style (component), as they focused too much on positive evidence. Ricchiute (1999) showed that audit seniors’ decisions were biased by their own past judgments, affecting how they documented information and, in turn, influenced their supervisors’ decisions. Fedor and Ramsay (2007) discovered that how auditors respond to feedback depends on the type of power their reviewers have. Positive power (expert and referent) improved performance, while negative power (coercive) had the opposite effect. Payne et al. (2010) found that face-to-face reviews between auditors and reviewers were more effective than written ones, making it easier to spot fraud. Kennedy and Peecher (1997) found that supervisors often overestimate their and their team’s knowledge, which can lead to assigning tasks to people who aren't qualified. Wilks (2002) showed that when supervisors share their opinions early, subordinates are likely to agree with them, leading to biased and sometimes incorrect audit decisions.

6. Auditors use judgment and evidence to decide on financial statement errors. Robertson (2010) found that flattery affects auditor decisions, but less so when clients seem less trustworthy. Cianci and Bierstaker (2009) showed that being in a bad mood helps auditors analyze better but makes ethical decisions harder. Anderson et al. (2003) found that auditors trust tools more than clients, even when both give poor explanations. Gender and task difficulty impact decisions, with women doing better on complex tasks and men on simpler ones (Chung & Monroe, 2001). Using helpful tools and reminders can improve accuracy and reduce bias in audits ( Emby & Lowe, 2002; Bierstaker et al., 1999). 2. Decision-making and Auditor Judgment

7. Auditor Characteristics Affect Performance: Auditors’ traits, like how trusting they are, influence their judgment. For instance, highly trusting auditors may overlook management’s incentives to misrepresent financial data, leading to poor decisions. Problem-Solving Skills Improve Performance: Auditors with better problem-solving skills perform better in evaluating internal controls and analyzing financial data, especially if they are experienced. Acceptance of Dysfunctional Behavior : Auditors’ likelihood of engaging in harmful behaviors like skipping steps or misreporting time depends on their personality, self-rated performance, and intentions to leave the firm. Role Stress and Job Performance: Job stress from unclear roles or conflicting expectations negatively affects auditors’ job satisfaction and performance, although aggressive personalities (Type A) do not seem to be significantly impacted. Cognitive Styles Impact Task Performance: Auditors’ thinking styles (analytical or intuitive) affect how well they perform specific tasks, suggesting that tasks should be assigned based on these styles to optimize performance. Moral Reasoning and Underreporting: Auditors who follow higher moral principles are less likely to underreport time spent on tasks, even under pressure, compared to those with lower moral reasoning. 3. Auditor Characteristic and Performance

8. Auditor-Client Relationship : Auditors' behavior is influenced by both financial rewards (like salary) and non-financial factors (like respect and ethical behavior ). Mandatory Rotation : When audit firms must change clients regularly, auditors and clients negotiate differently, often leading to less cooperation. Auditor Influence : Longer auditor tenure and the purchase of non-audit services can impact how easily clients can persuade auditors during disputes. Going Concern Opinions : Auditors may avoid giving negative opinions about a company’s future if they fear losing the client. Client Satisfaction : Quality of audit services, especially involving responsiveness and expertise, increases client satisfaction. Commitment : Affective (emotional) commitment between auditors and clients builds stronger, long-lasting relationships. Auditor Bias : Experienced auditors are more likely to favor clients' preferences, especially when specific client interests are made clear. Justifying Reporting Decisions : Auditors use vague standards to justify their decisions, often aligning with incentives to report aggressively or conservatively. 4. Auditor – Client Relationship

9. Author conclude with Supervisor decisions are influenced by how audit seniors handle evidence and documentation. Factors like documentation structure and auditor experience affect audit quality. Strategic influence, complexity of tasks, and factors like gender and memory can impact audit judgments and Decision-Making . High trust, clear roles, and practical problem-solving improve audit performance, while role conflicts and underreporting hurt it. Auditor-Client Relationships : Mandatory rotation reduces dependence between auditors and clients, but experienced auditors and aggressive reporting methods can increase dependence. Long auditor tenure doesn’t affect independence much, and new auditors often lead to higher client satisfaction. Future scope : More studies should explore how evidence amount affects audit quality, optimal professional skepticism levels, and whether mandatory rotation reduces negative behaviors like underreporting and insufficient evidence collection. Conclusion

10. USING BEHAVIOUR MAPPING TO EVALUATE THE USING EFFICIENCY OF PUBLIC SQUARE. CASE STUDY: NOVEMBER 1 st , 1954 SQUARE IN M'SILA CITY Imededdine Salamani1*, Hynda Boutabba Hynda *, Nabyl Chenaf ** Process Study Area: Location: M'sila , Algeria, in a semi-arid region, key for commerce and transport. Historical Background: M'sila has evolved from a fortified town to a modern city with various public squares created over time, especially during and after French colonial rule. Focus Area: The November 1st Square, built in 1984, is central to the study due to its strategic location and frequent use. Approach Methodology: Tools Used: Behavioral mapping and a questionnaire survey. Data Collection: Observations and surveys were conducted from March 25 to April 25, 2022. Data was collected on weekdays and weekends, during peak times and different parts of the day. Survey Details: The questionnaire explored users' perceptions of the square, their personal data, and their preferred times and access methods. Data analysis will use SPSS software. Intent The study aims to evaluate the  efficiency of public squares   in M’sila city, specifically focusing on the  November 1st, 1954 Square . It investigates how the  physical characteristics  of the square influence  human behavior  and social interactions.

11. Results Behavioral Mapping : Observations show that the November 1st, 1954 Square is used differently at various times of the day. Adults mainly use the square, with notable patterns: Morning (8 am - 12 pm) : 25-48 people, mostly retirees. Afternoon (12 pm - 4 pm) : 32-36 people, mostly young adults. Evening (4 pm - 8 pm) : 123-158 people, including children playing and more diverse activities. Activity Patterns : Sitting : Most common activity (51%). Playing Dominoes : Second most common (15%). Walking and Standing : Less common (11% each). Children’s Games and Cycling : Least common (8% and 4%, respectively). User Feedback : Location : 85.8% think the square is well-located. Design Issues : Poor paving and lack of shade are major concerns. Users want more green spaces, play areas for children, and spaces for adults to play games. Usage Timing : 90% prefer using the square in the evening.

12. Conclusion The study aims to assist planners and designers in creating better public spaces by understanding user behavior at the November 1st, 1954 Square in M'sila . It found that the square’s design does not match how people use it. The square, being surrounded by roads, limits activities like children's play. Users expressed a desire for more green spaces, shaded areas, and facilities such as cycle paths and slides. Adults also enjoy playing games like petanque and dominoes and would like dedicated areas for these activities. To address these issues, the study recommends adding more green spaces, water features, and shaded areas, designing spaces for various activities, and involving users early in the design process. Applying principles of environmental psychology can help create public spaces that better meet user needs and enhance their quality of life.

13. Intent The paper aims to use  behavioral mapping to design therapeutic spaces   for disabled children at the Disabled Children Rehabilitation Centre (YPAC)  in Surakarta, Indonesia. The goal is to create a more suitable environment for their rehabilitation. Introduction: This paper talks about using behavioral mapping to design better spaces for disabled children. It emphasizes making spaces accessible for everyone using universal design principles. 3. The Application of Behavioural Mapping to Design Therapeutic Spaces for Disabled Children Anggana Fitri Satwikasari1 Department of Architecture, Universitas Muhammadiyah Jakarta Process: Research Context: The study took place at the Disabled Children Rehabilitation Centre (YPAC ) in Surakarta, Indonesia. This center helps disabled children with therapy and education. Behavioral Mapping Method: The researchers used the Place Center Ma p method to observe and record what children do in different rooms of the center . Data Collection: Data was gathered through photos, sketches, and interviews with staff. They focused on rooms like the Occupational Therapy Room, Physiotherapy Room, Pendopo Area, Hydrotherapy Pool, and Dormitory. Analysis: They looked at how often and in what ways the children used these rooms to see how the current design affected their activities.

14. Post-Occupancy Evaluation (POE): They assessed the building's performance through: Technical Evaluation : Checking things like doors, lighting, and ventilation. Functional Evaluation : Seeing how well the rooms support activities. Behavioral Evaluation : Observing how the design affects the children’s behavior and preferences. Findings: The current building didn’t fully follow universal design principles. Problems included poor lighting, bad ventilation, slippery floors, and limited accessibility features like ramps. Redesign Proposal: They proposed a redesign using a Therapeutic Garden concept, which includes features like textured paths, handrails, and sensory gardens to improve the environment for therapy and daily activities. Implementation: The redesign focused on improving areas like the Pendopo , dormitory, and medical treatment rooms to make them more functional and enjoyable for the children. Conclusion The paper concludes that behavioural mapping is an effective tool for understanding user needs and guiding the redesign of therapeutic spaces. The proposed redesign aims to enhance the children’s independence and well-being through improved design features.

15. Process Research Approach : The study used a case study approach with a qualitative research method. This means it closely looked at specific examples to understand the topic in depth. It involved techniques like behaviour mapping, interviews, watching how children interact with their surroundings, and analysing visual data to learn about how children feel connected to their environment. Data Collection : Data was gathered through several methods: Behavior Mapping : This included observing children in specific places, watching individual behaviors , and noting physical traces like worn-out paths. Interviews : Both verbal and graphic interviews were conducted, meaning they talked to children and asked them to draw or show things visually. Visual Analysis : Children’s drawings were also studied to see how they view their environment. Analysis : The data was carefully examined by grouping similar findings, comparing different aspects, and interpreting what it all means. Children’s drawings, in particular, were categorized to understand their mental maps and emotional connections to places. 4. The Study of Children Place attachment in Tenganan Village with Visual Mapping and Behaviour analysis, June 2020, Karel Muktiwibowo , Gede Windu Laskara Intent The study aims to examine the  place attachment  of children in Tenganan Village, Bali Aga, and its impact on their identity and cultural sustainability.

16. Findings : The study highlighted how children in Tenganan Village feel attached to their surroundings. It showed that the physical space, everyday activities, and cultural identity play significant roles in shaping their sense of belonging and connection to the environment. Visual analysis helps understand the children’s cognitive maps and how they remember and connect with places. The study was conducted in Tenganan Village with 28 children aged 6-11 years. It also explored their preferences for traditional vs. modern characters and architectural forms, showing that children's choices are influenced by proximity, frequency of use, and personal experiences. The research found that children's place attachments are shaped by physical spaces, daily routines, and the ability of spaces to meet their psychological needs. Outcome The study concludes that children’s place attachment is influenced by  proximity, frequency of use, and the ability to meet psychological needs . It highlights the importance of maintaining cultural identity and providing spaces that foster positive memories for children. Children hand drawing

17. Intent The paper aims to investigate the  relationship between design elements  and  people’s behavior  in campus public spaces. It seeks to determine how design elements like  colour, lighting, technology, landscape, and spatial arrangement  influence public activities and interactions. 5. The Study of Design Elements and People’s Behaviour in Campus Public Space How Design Shape User’s behaviour YING DING ,MIRKO GUARALDA Process Literature Review : Examines existing theories on public space design and behavior . Methodologies : Utilizes  observation, behavioral mapping, interviews, and cognitive mapping  to gather data. Case Studies : Focuses on two campus public spaces at  Queensland University of Technology (QUT)  and  University of Queensland (UQ) . Data Collection : Observes and records people’s behavior in these spaces at different times of the day. In this they used  qualitative methods  for auditing specifically  observation  and  interviews .

18. how they are used? Observation – Behavioural Mapping : This technique involves observing and recording people’s locations and actions within a given physical environment. The study uses visual observation and camera recording to illustrate trends in people’s paths and activities in public spaces. Interviews and Cognitive Mapping : The study interviews 30 participants from each case study to gather personal perspectives and experiences. Participants also create cognitive maps, which are mental representations of the environment, to understand how they visualize and interact with the space. Technology Use : Many people use their phones or devices alone in these spaces. For example, 30% of people use technology alone at QUT Yard Place, and 28.5% do the same at UQ Campbell Place. This shows that people are using these spaces more for personal activities rather than socializing. Landscape Design : Yard Place : Has more hard surfaces like concrete and fewer grassy areas. It’s mainly a place people walk through, not spend a lot of time in. Campbell Place : Has more grassy areas and is designed for people to stop and relax. It’s a popular spot for hanging out and enjoying the outdoors.

19. Final Outcome The study concludes that  well-balanced design elements  significantly enhance public activities and interactions. It provides a deeper understanding of how design can shape user behavior , contributing to the creation of more effective and engaging public spaces.

20. Space Layout : Yard Place : The main area doesn’t feel very inviting. People often stay around the edges rather than in the middle. Campbell Place : The design encourages people to gather in the center , making it more engaging and interactive. Behavior Patterns : Small Groups : Prefer quiet, sheltered spots. They stay close to paths in Campbell Place but avoid main walkways in Yard Place. Medium Groups : Like areas with seating for 4–6 people. They find more space and comfort in Campbell Place compared to Yard Place. Large Groups : Find more space in the center of Campbell Place. In Yard Place, they often sit on the edges. Mass Groups : Big groups like areas that are open and have lots of people. They enjoy the lawn at Campbell Place more than the stair platforms at Yard Place. Overall Impact : Good design in public spaces, with nice landscapes and smart layouts, makes people happier and more likely to use the space in different ways. Analysis : Compares the design elements and their impact on user behaviour in the two case studies. Focusing on two local campus public spaces to examine the relationship between design elements and user behavior , allowing for detailed analysis and comparison.

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