Additional analyses demonstrate that auditors in the deliberative mindset
condition are not less trusting of management in general; rather, they
target the specific assumptions with seeded errors. They also evaluate evidence
about the appropriateness of the aggressive discount rate more critically
than do auditors in other conditions. Structural equation modeling
confirms the posited mechanism is at work. That is, identification of the
seeded inconsistencies and more critical evaluations of the appropriateness
of the discount rate jointly fully mediate the relationship between the deliberative
mindset condition and the assessed reasonableness of the fair value.
Thus, the deliberative mindset facilitates identification of the seeded issues