Promoting Proactive Auditing Behaviors

• In Event: Managing Auditor Behavior

Abstract

Auditors work in complex, dynamic environments where complete directives are often unavailable. Thus, in order to achieve high quality audit outcomes, auditors need to think and act proactively. For example, auditors should proactively respond to unanticipated risks, coordinate effectively with clients, and develop the talent of junior auditors. We experimentally examine whether there are common conditions that encourage auditors to engage in a range of distinct proactive behaviors. Drawing on literature on employee proactivity, auditor tacit knowledge, and regulatory focus theory, we predict and find that auditors with more autonomy are more proactive, but only when they have both higher tacit knowledge and a focus on achieving positive job outcomes (rather than avoiding negative job outcomes). Our contributions include introducing the proactivity construct to the auditing literature, identifying antecedents to auditor proactivity, and advancing the management literature by providing evidence about how determinants of proactivity interact.

Authors

• Mark Peecher, University of Illinois-Urbana-Champaign

• Michael Ricci, University of Florida

• Dan Zhou, University of Illinois-Urbana-Champaign