PROCEDURAL FAIRNESS IN THE PEER AND QUALITY REVIEW PROGRAMS

The adoption of mandatory practice-monitoring represents an AICPA poli cy decision that was unpopular with some of its members. The use of fa ir decision-making procedures may be one way to mitigate the adverse e ffects of such decisions. This study examined whether the fairness of decision-making procedures relating to practice-monitoring affects rev iewees' commitment to the AICPA or their trust in reviewers. Correlati on techniques (LISREL) were applied to questionnaire data from 560 fir ms subject to either a peer or quality review. Procedural fairness was associated with both commitment to the AICPA and trust in the reviewe r, which suggests that members' sentiments would improve ii the AICPA and reviewers adopt a fairer process of decision making. This might be accomplished by adopting procedures that give those most affected by the decisions greater opportunity to express their opinions and concer ns to decision makers.