Can Prior Consultations with Specialists Backfire on Auditors?

As advanced audit data analytics (ADA), including artificial intelligence, become increasingly sophisticated, auditor consultations with in-house ADA specialists are likely to become commonplace. We examine whether auditors’ prior ADA consultation experience affects their superiors’ reliance on the auditors’ ADA work performed independently of specialists.

On one hand, learning through prior specialist consultation may enhance auditors’ technological proficiency, increasing superiors’ reliance on their ADA testing. On the other hand, a history of consultation may signal dependence on specialists. This signal may conflict with superiors’ expectations that auditors can perform ADA tasks independently and trigger a backlash effect that ultimately undermines reliance.

In an experiment, we find that when an audit senior has prior experience consulting with ADA specialists, audit managers evaluate the senior as more competent, yet rely less on the senior’s independent ADA work. This pattern is consistent with a backlash effect. We observe that this backlash effect occurs even when the subordinate’s ADA skills are low. This unexpected result is concerning, as backlash may discourage consultation even among auditors with lower ADA skills who need it most for learning and skill development.

Our findings highlight the importance of managing interpersonal dynamics within engagement teams when incorporating ADA into audits.