The Effects of Expert Status on the Audit of Complex Estimates

The study explores how expert status influences auditors’ evaluation of specialists involved in auditing complex estimates. Auditors often rely on specialists due to the technical nature of such estimates, but they struggle to assess the quality of specialist input. The research suggests that high-status specialists—those with prestigious affiliations or reputations—may receive more favorable evaluations, even when their work lacks strong justification. This can lead to audit risk if auditors substitute status for substance.

Three key findings emerge:

1. Auditors rate high-status specialists more positively, regardless of actual work quality.
2. When specialists agree with clients, auditors are less critical if the specialist has high status.
3. When specialists disagree with clients, high status lends credibility to the dissent, improving audit quality.

The study warns against overreliance on status cues and calls for more balanced evaluations based on the substance of expert input.

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