FAR Literature Review - The impact of auditor interactions on audit quality
The judgment and decision-making literature in auditing largely focuses on individual auditor judgments. However, auditors do not work in isolation. They interact with other auditors in audit engagements and with other participants in the financial reporting process. For this reason, scholars have called for more research on how the people, tasks, and environment that auditors interact with influence their performance and hence, the audit quality of their work.
This review identifies three specific issues related to these influences that, we believe, warrant additional research and consideration. The first two issues relate to between-auditor interactions within the audit firm. The third issue relates to interactions with groups outside the firm.
Authors
Eddy Cardinaels (1975) is full Professor of accounting at Tilburg University and part-time professor at KU Leuven. His work combines new insights from psychology and behavioral economics to study how different information presentation (ABC, BSC, summaries of earnings releases) can affect decision making of managers within companies. Other experimental work focuses on drivers of honest reporting and social motives in inter-firm negotiations. He also conducts archival work on corporate governance examining how social connections between board members affect financial reporting, how companies use their networks to engage in tax avoidance and factors that drive (excess) compensation.
Professor in Accounting and Control at Vlerick Business School and KU Leuven.
Evelien Reusen obtained her PhD at KU Leuven and is currently Associate Professor in Management Accounting at RSM. Evelien’s research concentrates on the role of control, cooperation and trust, in both intra- and interorganizational settings.
Her work has been published in Accounting, Organizations, and Society and The Journal of Supply Chain Management.