The Effect of Multiple Auditors on Deception Detection in a Client Inquiry Setting

Abstract

Auditors frequently gather information by conducting client inquiries. During these inquiries, auditors should be alert to verbal and nonverbal cues emanating from members of client personnel that might be indicative of deception. Extant literature on deception suggests that the general practice of using a single auditor to conduct client inquiries may limit the ability of auditors to detect deception. Using Master’s-level accounting students as a proxy for entry-level auditors, I examine how the use of one or two auditors affects the behavioral cues (nervousness and discussion) of client personnel that may indicate deception during inquiries. In addition, I study whether two auditors are more likely than a single auditor to detect deception during inquiries. Results suggest that the number of auditors taking part in an inquiry significantly impacts deceptive clients’ behavioral cues, as well as how those cues affect auditors’ perceptions of client honesty and subsequent write-down recommendations. Specifically, results of a mediation analysis suggest that two auditors, but not single auditors, are able to detect deception through the use of behavioral cues. This paper contributes to prior studies on client inquiries and interpersonal deception theory.