Cookie preferences
Settings I agree

FAR Practice Note - Leadership Behaviors by Partners and Managers, and Audit Team Performance

Leadership research in the organizational behavior (OB) literature has generally focused on singleleader teams. Yet many organization, including audit firms, have more complex dual leader structures in which leadership duties are shared between two team leaders. We study this in the context of audit teams in which the dual leaders are the audit partner and the audit manager. We find some evidence that division of labor in leadership behaviors is effective. However, the most effective audit teams are those in which both the partner and manager have what are called “consideration” behaviors that exhibit a concern for the welfare of team members. We call this “the power of consideration.” This finding makes sense given that audit teams come together for short periods of time, and there is a need for the audit team to feel confident in order to be effective. The other condition in which audit teams perform well is when the partner exhibits strong leadership behaviors for both initiating structure (defining goals, communication channels, time-lines) and consideration, irrespective of the manager’s leadership behaviors. We call this the “super partner” effect. Overall, the results point to active engagement by partners and managers with the audit team as being the most effective leadership behaviors. While initiating structure behaviors are important, consideration behaviors are far more important in audit teams, a finding which differs from prior OB research. Finally, the results underscore the importance of training partners and managers in the effective use of consideration behaviors to build team confidence and to ensure the best audit team performance.

Authors

Prof. dr. Jere R. Francis

Professor Jere Francis is ranked among the top ten academics to publish in leading scientific journals in the field of accountancy research. He won two awards from the American Accounting Association (AAA) for his substantial contribution to auditing research. He was also named Outstanding Audit Educator in 2013 by the AAA. Professor Francis served on the editorial boards of several leading scientific journals, including Abacus, Accounting Organizations & Society, Accounting & Finance, Auditing: A Journal of Practice & Theory, Contemporary Accounting Research, Journal of Accounting & Economics, Review of Accounting Studies, and The Accounting Review. In addition to being of scientific import, his research has been of practical significance to accountants and regulatory authorities and he has presented his research to leading international accountancy firms, the American Institute of Certified Public Accountants, the World Bank and the Public Company Accounting Oversight Board in the United States. As FAR Research Chair, Professor Francis conducts scientific research on the quality of audits. He will also boost auditing education in the Netherlands with the help of several PhD students as part of this chair position.

Prof. dr. Murray R. Barrick

Professor Barrick’s research focuses on the impact individual differences in behavior and personality have on job performance and on methods of measuring and predicting such differences.  He also is a co-author of the Theory of Purposeful Work Behavior, which highlights the role of purposefulness and experienced meaningfulness arising within the person as a key to explaining person-situation interactions.  Further, Barrick studies executive team success, examining the role of the CEO, personality and leadership of TMT members, team composition, team interdependence, and team processes on individual, team, and firm performance.  Finally, he also has examined the influence candidate self-presentation tactics have on the interviewer during an employment interview.

Prof. dr. Olof Bik RA

Olof Bik is professor of Auditing & Assurance at the University of Groningen. In his research he takes a special interest in the study of culture, leadership, and behavior in the realm of the auditing and assurance profession, firms, and teams. Since its inception in 2015 until 2022, Bik was one of two managing directors and academic member of the Board of the Foundation for Auditing Research. He worked in the audit practice of PwC for 18 years, since 2002 always in combination with a university appointment (Groningen), and joined academia in full since 2012 (Nyenrode). 

Prof. Bradley Kirkman

Bradley L. Kirkman is the General (Ret.) H. Hugh Shelton Distinguished professor of leadership in the Department of Management, Innovation, and Entrepreneurship in the Poole College of Management at North Carolina State University. He received his Ph.D. in organizational behavior from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. His research focuses on leadership, international management, virtual teams, and work team leadership and empowerment. He was formerly the Foreman R. and Ruby Bennett Endowed Chair in Business Administration in the Mays Business School at Texas A&M University. He has also worked in the Scheller College of Management at The Georgia Institute of Technology and the Bryan School of Business and Economics at the University of North Carolina Greensboro. He has held visiting professor positions in the Department of Management and Organizations at the University of Western Australia in 2006 and the Guanghua School of Management at Peking University in 2012. He was the chief operating officer (from 2016 to 2021) and is currently the program chair of the Organizational Behavior Division in the Academy of Management.

Dr. Lena Pieper

Lena Pieper is Assistant Professor at Gies College of Business at the University of Illinois Urbana-Champaign. She joined Gies after completing a PhD from Maastricht University’s School of Business and Economics in the Netherlands. Lena spent time at Gies as a visiting PhD student in Spring 2022, and she brings research experience in auditing and leadership.

Prof. dr. Ann Vanstraelen

Ann Vanstraelen is Full Professor of Accounting and Assurance Services at Maastricht University and serves as Head of the department of Accounting and Information Management. She coordinates the multidisciplinary research theme "Culture, Ethics and Leadership". She earned her PhD at the University of Antwerp. Her research interests relate to the broad field of auditing and assurance services, governance, corporate reporting and disclosure, with a specific focus on the quality of accounting and auditing practices. 

 


Back to overview