Measuring novice auditor orientation and its impact on judgment

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE
Ferdy van Beest, Robert Pinsker
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引用次数: 0

Abstract

Purpose

The purpose of this study is to construct and test a new measure of auditor orientation using two audit quality-related tasks.

Design/methodology/approach

The sample consists of 66 Dutch and US graduate auditing students. Participants complete two tasks: one involving a lease classification and another, supplemental experiment involving a contingent liability judgment. The purpose is to construct a new measure for rules-based/ principles-based orientation. Rigorous, psychometric testing confirms that parts of tolerance for ambiguity (TOA) and need for cognition (NFC), together, form a new construct the authors identify as auditor orientation. The authors next conduct a main and supplemental experiment with novice auditor participants from both the USA and the Netherlands.

Findings

The authors begin with rigorous, psychometric testing using participants from the USA and the Netherlands. The resulting 10-item scale combines parts of TOA and NFC to reflect auditor orientation. The common themes across scale items are high (low) adaptability to complexity and a substance-over-form (form-over-substance) preference for principles-oriented (PO) (rules-oriented [RO]) auditors. Conducting two experiments, results from two distinct tasks confirm our research question; novice auditors classified as RO (PO) are more (less) likely to recommend a more aggressive/client-favorable disclosure judgment.

Originality/value

Auditor orientation (i.e. rules or principles) has a significant impact on the application of rules-based or principles-based standards. How the standards are applied, therefore, influences auditor decision-making and thus audit quality. However, there is a paucity of auditor orientation research to date, including a validated measure. The study contributes a new measure for future research in the related accounting standards and audit quality literatures, while also identifying a potentially important construct in auditor training.

衡量新手审计员的取向及其对判断的影响
设计/方法/途径样本由 66 名荷兰和美国的审计研究生组成。参与者完成两项任务:一项涉及租赁分类,另一项是补充实验,涉及或有负债判断。目的是为基于规则/基于原则的导向构建一个新的衡量标准。严格的心理测试证实,对模棱两可的容忍度(TOA)和认知需求(NFC)共同构成了一个新的结构,作者将其命名为审计师导向。接下来,作者对来自美国和荷兰的新手审计员参与者进行了主要和补充实验。最终得出的 10 个项目量表结合了 TOA 和 NFC 的部分内容,以反映审计师的取向。量表项目的共同主题是对复杂性的适应性高(低),以及原则导向(PO)(规则导向[RO])审计师的实质重于形式(形式重于实质)偏好。通过进行两项实验,两项不同任务的结果证实了我们的研究问题:被归类为 "规则导向"(RO)("原则导向"[PO])的新手审计师更倾向于(较不倾向于)推荐更激进/更有利于客户的披露判断。因此,如何应用准则会影响审计师的决策,进而影响审计质量。然而,迄今为止有关审计师导向的研究,包括经过验证的测量方法还很少。本研究为相关会计准则和审计质量文献的未来研究提供了一个新的衡量标准,同时也为审计师培训确定了一个潜在的重要结构。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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