Justin Leiby

Professor

Dr. Justin Leiby. He is an professor of accountancy at the University of Illinois. His research interests have been in the area of auditing, focusing on the social aspects of auditing. You can think of social bonds, social status and empathy. Researcher & educator in risk management & analytics. Auditing, risk, inequality, drug policy.

De Foundation for Auditing Research (FAR) viert haar tienjarig jubileum. Ter gelegenheid van deze bijzondere mijlpaal presenteren wij met trots deze jubileumpublicatie. In het afgelopen decennium is FAR uitgegroeid tot een uniek platform waar gedegen academisch onderzoek en de accountantspraktijk op een constructieve en waardevolle manier samenkomen. Wat FAR bijzonder maakt, is niet alleen de toegang tot rijke, praktijkgerichte auditdata, maar vooral de voortdurende dialoog tussen onderzoekers en accountants. Dit boekje laat zien hoe FAR deze samenwerking tot leven brengt. Het bevat een interview met de vertrek­kende academic director Jan Bouwens en zijn opvolger Anna Gold. Hun reflecties bieden zowel een persoon­lijke als institutionele kijk op de ontwikkeling van FAR in de afgelopen tien jaar en de koers die voor de toekomst is uitgezet. Het interview laat zien hoe FAR’s missie, het dichter bij elkaar brengen van wetenschap en praktijk, is uitgegroeid van een ambitie tot een alledaagse realiteit, en benadrukt tegelijkertijd waar nog verdere stappen gezet kunnen, en moeten, worden. Om de gemeenschappelijke basis tussen wetenschap en praktijk te illustreren, bevat dit boekje daarnaast vier projectbeschrijvingen. Elke beschrijving belicht kort een FAR-ge­relateerde studie, gevolgd door het perspectief van een onderzoeker en een reflectie van een praktijkprofes­sional. Deze bijdragen onderstrepen dat FAR-onderzoek een vorm van co-creatie is: niet over de praktijk, maar samen met de praktijk.
This literature review synthesizes research on whether auditors’ commercial activity conflicts with professional obligations, or whether the two can coexist and even reinforce each other through firm-level quality controls. It frames the debate between the “trade‑off” view, where commercialism undermines professionalism, and an alternative perspective that highlights complementary roles of both logics in audit practice. The review also traces the evolution of organizational control in public accounting firms, from collegial autonomy to more formal structures, and considers how mechanisms such as technical consultations may help align commercial goals with high audit quality and engagement efficiency. Based on gaps in prior evidence, the authors call for empirical tests linking auditors’ commercial activity to individual performance evaluations, promotion decisions, and indicators of audit quality, expecting that commercial efforts can be rewarded without compromising quality.
This literature review explores how audit committee involvement can enhance auditors’ application of professional skepticism which is a critical factor for audit quality. It synthesizes research on auditor traits, knowledge, and incentives, highlighting barriers such as time pressure, budget constraints, and outcome bias that discourage skepticism.
The review also examines how audit committees can support auditors beyond oversight, including through direct communication and fostering a supportive culture, to reduce these barriers. Findings suggest that audit committee support, when effectively conveyed, may strengthen skepticism and improve audit quality.
Auditing complex estimates frequently requires input from specialists. However, auditors struggle to assess specialists’ capability and work quality, in part because auditors by definition lack the expertise to precisely evaluate a specialist’s skills and work processes. Specialists can improve the audit of estimates, but any potential improvement first requires appropriate assessments of the adequacy of specialist’s work. Specifically, scholarly literature provides evidence that complex estimates provide client management with leeway to report in a manner consistent with its incentives, and that specialists are often hesitant to challenge these estimates. Thus, overestimating the specialist’s skills or work quality may lead the auditor conclude that an estimate is reasonable based on insufficient evidence, increasing audit risk and reducing financial reporting quality. This study examines whether a specialist’s high status leads to higher auditor evaluations of specialist work quality and greater reliance on this work as persuasive evidence. By status, we refer to prestige indicated by the respect of peers, elite university or company affiliations, and/or membership in exclusive social circles. U.S. and international auditing standards direct auditors to assess specialists based on information such as the specialist’s experience with an audit issue, but also on “softer” factors such as the specialist’s credentials, reputation, and standing among peers. The IAASB has recently expressed concern about auditor “over-reliance on the qualifications of the expert with no further consideration as to their appropriateness.”
This commemorative booklet marks the tenth anniversary of the Foundation for Auditing Research (FAR). It reflects on FAR’s journey as a unique platform where academic research and audit practice meet to advance audit quality. The publication highlights:
  • FAR’s Mission and Impact: How FAR evolved from an ambition into a reality, fostering collaboration between researchers and practitioners through access to real-world audit data.
  • Insights from Leadership: An interview with founding academic director Jan Bouwens and his successor Anna Gold on FAR’s achievements, challenges, and future priorities.
  • Research Highlights: Four featured studies on topics such as auditors’ commercial efforts, student expectations versus auditor experiences, data analytics and professional skepticism, and learning within audit teams.
  • Key Figures and Projects: An overview of FAR’s outputs, including practice notes, masterclasses, conferences, and a growing portfolio of research projects.
The booklet not only looks back with pride but also outlines ambitions for the future of strengthening knowledge transfer, increasing practical usability of research, and deepening engagement across audit firms and academia.
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