This paper discusses the effect of situational factors on accounting decision-making. It distinguishes between the effects of situational factors and individual factors and explains how situational factors could affect the accounting decision making process even when the same information and evidence are available to the decision makers. The effects of three major situational factors are discussed and propositions are developed. The results are discussed and implications for future studies are explained.
Situational Factors, Accounting Decision Making, Superior Pressure, Materiality.