Evelien Reusen

Associate Professor

Evelien Reusen is Associate Professor of Management Accounting at Rotterdam School of Management, Erasmus University. She earned her PhD in Accounting from KU Leuven and joined RSM in 2015. Her research focuses on the role of control, cooperation, and trust in intra- and interorganizational settings, including supply chain relationships and auditor behavior. Evelien has published in leading journals such as Accounting, Organizations and Society, Journal of Accounting and Public Policy, and The Journal of Supply Chain Management. She teaches Management Accounting and Management Control at undergraduate and master levels and actively collaborates on projects related to audit quality and organizational dynamics.

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.  
As a key attribute to audit quality, regulators specify that more experienced staff (i.e. managers, senior auditors) should provide less experienced staff with appropriate coaching and on-the-job training (IAASB 2014). It is fairly common for junior auditors to start their auditing career by mimicking a more senior person who performs similar tasks; as the saying goes, “Monkey see, monkey do” (Cannon, 2016). Yet, while imitation is an inherent human tendency, limited evidence exists on the impact of such imitative behavior on the quality of an individual auditor’s judgment. The objective of our research project is to examine the extent to which mimicking behavior occurs in junior–senior auditor relationships and its consequences for audit quality. In particular, we advance the argument that this imitation tendency may lead junior auditors to follow seniors’ auditing practices, even when those practices are not always ideal. We also examine whether promotion opportunities for the junior can be an important contributor in mimicking an audit style of a senior (which in turn would affect audit quality). The tendency to imitate their senior – even though his working practices might not be ideal – might be higher when the direct senior has a strong voice in the promotion decision of the junior.  
KEY TAKE-AWAYS Imitation of senior auditors might be a valuable strategy for juniors to learn on-the-job and improve their performance. In this paper, the research team experimentally examines how a senior auditor’s working style (high diligence vs. low diligence) interacts with the nature of the audit firm’s promotion system (superior-based vs. consensus-based) to influence junior auditor judgment by affecting junior auditors’ imitation behavior.  
In hierarchically structured audit teams, it is common that junior auditors gather a large part of the evidence used as the basis for the audit opinion, which makes information sharing critical. However, if a team consensus already exists, individual auditors may conform to the team and thus hesitate to raise important issues they themselves acquired about a client. This study experimentally investigates how the origin of team consensus (i.e. consensus coming from junior members vs. consensus coming from senior members) and the type of the inclusive climate (i.e. authenticity vs. belongingness) impact junior auditors’ conformity behavior and their willingness to share their own risk assessment with their team. Drawing on conformity theory, we hypothesize and find that junior auditors are more likely to conform to a team consensus of senior members, and are also less likely to share their risk assessment with the team, particularly within an authenticity climate. These effects of conforming more to senior members, however, are mitigated when firms focus on a climate of belongingness.
On June 21, 2021, the Foundation for Auditing Research (FAR) organized its annual conference. Forced by the global health conditions the conference was organized online. That did not stop professionals and practitioners from signing up, for we welcomed 200 audit research enthusiasts, from all over the world. The audience was comprised of 50 percent academic researchers, 35 percent were practicing auditors and the other 15 percent were a mix of regulators, standard setters, and other interested parties. The conference consisted of four sessions. The first three presentations were related to FAR studies. The fourth study was about a recent integrity study, based on American data. The overarching theme of the conference was ‘The Human Factor’, stressing the important fact that human influence can lead to both improvements as well as deterioration of audit quality.  
On June 5 2020, Eddy Cardinaels and Kristof Stouthuysen presented an online masterclass concerning their study ‘The Impact of Auditor Interactions on Audit Quality’. This report provides a summary of the masterclass, including preliminary findings from the experiment they conducted. The study, so far, shows that:
  • Concerning imitation, junior auditors imitate a more diligent superior more than a lower diligent superior. This effect is even more pronounced under a superior-based promotion system (as opposed to consensus-based promotion system).
  • Regarding audit quality, junior auditors perform better when facing a diligent superior.
Furthermore, (self-reported) imitation does not improve audit quality. In particular, when facing a low diligent auditor, audit quality deteriorates. Hence, there seems to be a possibility to imitate a superior too much, particularly in the low diligent situation.
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