The effect of individual auditor quality on audit outcomes: opening the black box of audit quality

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE Managerial Auditing Journal Pub Date : 2022-05-11 DOI:10.1108/maj-07-2021-3235
D. Stice, Han Stice, Roger M. White
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引用次数: 2

Abstract

Purpose This study aims to examine the effect of individual auditor quality (below the partner level) on overall audit quality. Design/methodology/approach We aggregate audit employee-level individual performance evaluations to create a measure of auditor quality at the office level. Findings We find that high-quality audit offices are associated with a lower likelihood of client restatement, fewer client abnormal accruals and a higher likelihood of a client receiving a going concern opinion. We partition employees into low, medium and high level, based on job title, to investigate which employee levels drive these results. We find that the restatement results are driven by high quality high-level employees (Senior Managers/Directors), whereas the going concern results are driven by high quality low-level employees (Seniors). Furthermore, we find evidence that high-quality audit teams are associated with all aspects of audit quality and the magnitude of these team effects are much larger than those of the effects for any individual employee type. Originality/value Our findings are consistent with higher-level auditors preventing the most serious financial statement deficiencies, low-level employees contributing to audit firm independence and overall team quality creating synergy which has the strongest effect on all aspects of audit quality. These insights based on individual auditor evaluations are new to the literature. Overall, our empirical results suggest that individual auditor quality is associated with higher quality audits and that employees at all levels affect audit outcomes.
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个体审计师素质对审计结果的影响:打开审计质量黑箱
目的本研究旨在探讨个别审计师(低于合伙人水平)对整体审计质量的影响。设计/方法/方法我们将审核员工级别的个人绩效评估汇总起来,以创建办公室级别审核员质量的衡量标准。我们发现,高质量的审计事务所与客户重述的可能性较低、客户异常应计项目较少以及客户收到持续经营意见的可能性较高相关。我们根据职位将员工划分为低、中、高层,以调查哪些员工级别推动了这些结果。我们发现,重述结果是由高质量的高层员工(高级经理/董事)驱动的,而持续经营结果是由高质量的低层员工(高级经理/董事)驱动的。此外,我们发现证据表明,高质量的审计团队与审计质量的各个方面都存在关联,并且这些团队效应的幅度远大于任何单个员工类型的影响。原创性/价值我们的发现与以下观点一致:高层审计师防止了最严重的财务报表缺陷,低层员工有助于审计事务所的独立性,整体团队质量创造了对审计质量各方面影响最大的协同效应。这些见解基于个别审计师的评价是新的文献。总体而言,我们的实证结果表明,审计师的个人素质与更高质量的审计有关,各级员工都会影响审计结果。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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