Audit Partners' Co-Working Experience and Audit Outcomes

We examine whether increases in co-working experience between the lead and concurring audit partners affect engagement audit quality and audit efficiency. We define co-working experience as the lead and concurring audit partners having worked together in these roles on previous audit engagements for clients other than the focal client. A priori, increases in co-working experience could increase or decrease audit quality, but are expected to increase audit efficiency. Using data from Taiwan, where the identities of lead and concurring audit partners are known, we find that co-working experience is positively associated with audit quality and audit efficiency. Further, the effects of co-working experience on audit quality and audit efficiency are more pronounced when co-working experience is more intensive, the two partners are more accessible to each other, the audit firm is less experienced with the client or less knowledgeable about the client's industry, or client audit risks are higher. Data Availability: Data are available from the sources cited in the text. JEL Classifications: M4; M42.