Project Number – 2019E01
What makes audit partners and their engagement teams successful?
What?
The research objective was to understand the primary factors that made audit partners, management, and their engagement teams successful in terms of the quality of their teamwork and engagement outcomes. One major goal of this research project was to answer this fundamental question: what was it about audit partners and managers that mattered? For this, the project focused on audit partner and manager personality and leadership styles, their dyadic fit, and team dynamics and climate – all in regard to audit quality.
Why?
In terms of audit practice, the contribution of this study was to provide a scientific basis for organizing and managing audit teams in order to further enhance audit team performance and quality. This analysis was intended to help develop more targeted responses to managing audit team leadership composition, achieving better and consistent audit outcomes, and improving the internal dynamics of audit teams (how teams worked).
Articles & Publications
Audit Externalities and Regulation
Working Paper (2024) by Prof. dr. Jere R. Francis on why audits are regulated and the economic rationale behind audit externalities. The paper argues that audits create positive externalities for society, leading to underproduction of audit quality in a free market. It critiques Pigou’s framework and emphasizes cost-benefit analysis for regulatory decisions to avoid unintended consequences such as increased Big 4 concentration.
Does Personality Relate to Job Performance of Partners and Managers?
Practice Note (2023) examining how Big Five personality traits and other behavioral characteristics influence job performance of audit partners and managers. Using survey and firm data from 1,600 auditors, the study finds that traits like extraversion positively affect performance, while others have mixed effects through technical, commercial, and leadership skills. Implications include targeted training and diversity considerations in leadership roles. Keywords: personality traits, job performance, leadership, audit quality, organizational behavior.
Partner-Manager Voice Modeling Behavior and Mixed Messages
Practice Note (2023) exploring how partner and manager leadership behaviors affect psychological safety and team voice in audit engagements. Analysis of 127 teams shows that managers’ voice role modeling strongly promotes team voice climate, but inconsistent behaviors (e.g., shortcuts) undermine this effect. Mixed messages between partner and manager do not harm safety if at least one leader models voice behavior.
It Take Two to Make a Team Go Right: Effects of Dual Team Leaders’ Individualized
Consideration and Initiating Structure on Team Efficacy, Performance, and Viability
Working Paper (2024) examining how dual leadership structures—specifically audit partners and managers—affect team efficacy, performance, and viability in audit engagements. Using data from 93 audit teams, the study found that team outcomes were strongest when both leaders demonstrated individualized consideration and initiating structure. The “Power of the Partner” and “Power of Consideration” effects highlight the importance of leadership synergy in dual-leader teams. These findings offer practical insights for structuring and training audit leadership to improve team functioning and audit quality. Keywords: dual leadership, team efficacy, audit teams, leadership behavior, audit quality.
Audit Partner-Manager Dyadic Fit and Team Functioning
Practice Note (2024) examining how the fit between audit partners and managers influences team functioning and audit quality. Drawing on data from multiple audit teams, the study finds that alignment in leadership styles and personality traits between partners and managers fosters better team dynamics, communication, and performance. Conversely, misalignment can create tension and reduce team effectiveness. The findings provide practical guidance for audit firms on pairing leaders to optimize engagement outcomes
Project info
Research team
Involved University
Timeline
03/2019 – 2020
Project Number – 2019E01