Engagement Partner Identification and Jurors’ Evaluation of Engagement Partner Liability

• In Event: Continental Breakfast & Research and Education Forum
  In Paper Session: Table 16: Audit Firm Environment

Abstract

This research examines how engagement partner identification affects juror evaluations of engagement partner liability. We investigate three partner identification methods, which are firm signature only, engagement partner identification in type print on the audit report, and engagement partner signature on the audit report, and their effects on perceptions of engagement partner liability and punitive damage assessments. We find that engagement partner identification in any manner on the audit report leads to higher juror assessments of both engagement partner liability and likelihood of punitive damage assessments than only firm signature. We also find that engagement partner identification in any manner on the audit report increases partner liability more than it increases firm liability. These results address audit firm concerns that the engagement partner is exposed to more risk by public identification in the audit report.

Authors

• Kayla Denise Booker, Rhodes College

• Adrian LaTarus Mayse, Howard University