A comparative examination of auditor premature sign-offs using the direct and the randomized response methods

A potential problem with the use of the direct method (DM) of eliciting responses to sensitive issues is respondent bias. The degree of respondent bias is assessed by examining auditor premature sign-offs using both the DM of inquiry and the randomized response technique proposed by Greenberg et al. (1971). The findings using the RRT were that, on the average, auditors prematurely signed off almost 10 times over a period of 1 year. A significantly lower incidence of premature sign-offs was reported by auditors who responded to the DM of elicitation. The results suggest that the RRT is a preferred method for eliciting sensitive information.