Can Prior Consultations with Specialists Backfire on Auditors?

As advanced audit data analytics (ADA), including artificial intelligence, become increasingly sophisticated, auditor consultations with in-house ADA specialists are likely to become commonplace. We examine whether auditors’ prior ADA consultation experience affects their superiors’ reliance on their ADA work performed independently of specialists. On the one hand, learning from ADA specialists through prior consultation may enhance auditors’ technological proficiency, increasing their superiors’ reliance on their ADA testing. On the other hand, a known history of consultation may signal dependence on specialists. This signal may conflict with superiors’ expectations that auditors can perform ADA tasks independently, triggering a backlash effect that ultimately undermines reliance.  

In an experiment, we find that when an audit senior has prior experience consulting with ADA specialists, audit managers evaluate the senior as more competent, yet rely less on the senior’s independent ADA work. This pattern is consistent with a backlash effect. Prior consultation experience leads to lower superior reliance even when the subordinate’s ADA skills are low. This unexpected result is concerning, as backlash may discourage consultation even among auditors who need it most for learning and skill development (i.e., those with lower ADA skills). Our findings highlight the importance of managing the interpersonal dynamics of engagement teams when incorporating ADA into audits.