Promoting Proactive Auditing Behaviors

48 Pages Posted: 21 Jul 2020 Last revised: 4 Aug 2023

See all articles by Mark E. Peecher

Mark E. Peecher

University of Illinois at Urbana-Champaign; Gies College of Business; University of Illinois College of Law

Michael Ricci

University of Florida - Fisher School of Accounting

Yuepin (Daniel) Zhou

University of Illinois at Urbana-Champaign - Department of Accountancy

Date Written: July 25, 2023

Abstract

In this paper, we introduce the construct of proactive auditing behaviors to the accounting literature and report the first experimental investigation of their antecedents. Regulators and practitioners agree that proactive behaviors are needed to consistently achieve high quality audit outcomes, but also that these behaviors are scarce. Drawing on theory from management, accounting, and psychology, we predict that an environmental factor (autonomy) and a dispositional factor (tacit knowledge) interact to increase a range of distinct proactive auditing behaviors. These behaviors involve responding to evidence that has out-of-task implications, coordinating with clients to acquire task-related evidence, and two forms of coaching junior auditors. As predicted, we find that auditors are more proactive when they have both higher autonomy and higher tacit knowledge than when they lack either or both of these factors. Our theory and findings inform academics, regulators, and practitioners about the types of work environments and policies that can promote auditor proactivity successfully.

Keywords: proactive behaviors, autonomy, tacit knowledge, regulatory focus, audit quality, coaching

Suggested Citation

Peecher, Mark E. and Ricci, Michael and Zhou, Yuepin, Promoting Proactive Auditing Behaviors (July 25, 2023). Available at SSRN: https://ssrn.com/abstract=3636498 or http://dx.doi.org/10.2139/ssrn.3636498

Mark E. Peecher

University of Illinois at Urbana-Champaign ( email )

Gies College of Business
1206 South Sixth Street
Champaign, IL 61820
United States
217-333-4542 (Phone)
217-244-0902 (Fax)

Gies College of Business ( email )

1206 South 6th Street
IL 61820

University of Illinois College of Law ( email )

504 E. Pennsylvania Avenue
Champaign, IL 61820
United States

Michael Ricci

University of Florida - Fisher School of Accounting ( email )

Warrington College of Business
PO Box 117166
Gainesville, FL 32611-7166
United States

Yuepin Zhou (Contact Author)

University of Illinois at Urbana-Champaign - Department of Accountancy ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

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