Auditors and Social Media Use: Does Fear of Missing Out Affect Audit Quality?

• In Event: Auditor Biases

Abstract

Social media continues to grow in popularity and recent survey data suggests that auditors use it habitually. Early research suggests that social media content tends to focus on rewarding experiences, which can leave users with a fear that they are missing out (FOMO). While FOMO has been linked to negative outcomes, it is unknown how FOMO might affect auditors as they complete audit tasks. Using an experiment that holds social media usage constant, we rely on social comparison theory to test how social media content impacts auditors’ performance on audit related tasks. We find that auditors who view peer posts of rewarding experiences are less likely to collect and evaluate audit evidence than those that do not view such content. In a further test of our theory, we also demonstrate that evidence collection and evaluation is improved when auditors view posts made by other accountants in a professional setting alongside the social posts of nonaccountant peers. In support of social comparison theory, we find that auditors’ unfavorable comparisons with their peers leads to increased negative affect, in turn causing the reduction in audit evidence collection and evaluation. Our findings suggest that viewing social media content can affect the collection and evaluation of audit evidence and, therefore, have important consequences for audit quality. As such, our results have implications for practitioners, academics, and regulators.

Authors

• Stephen Kuselias, Providence College

• John Lauck, Louisiana Tech University

• Summer Williams, Westfield State University