Evidence on the Homogeneity of Personality Traits within the Auditing Profession

• In Event: 4.01 Behavioral Audit Research

Abstract

This study examines the extent to which audit firms achieve diversity of personality traits in their workforce. Examining this issue is important because basic research suggests that personality diversity can improve the quality of team performance. While audit firms continually invest in increasing the diversity of their workforce, we predict that personality diversity is unlikely to be achieved within organizations. Our prediction is based on attraction-selection-attrition (ASA) theory, which suggests that individuals are attracted to firms whose members are similar to themselves; firms select potential employees based on their match; and those who do not fit leave the firm. To test our prediction, we examine the personality traits from the Five Factor Model: neuroticism, extroversion, openness, agreeableness, and conscientiousness. Data from 981 auditors show that personality traits are similar within firm type (Big Four, medium-sized and small audit firms) and within occupational level (staff to partner), but diverse between firm types and occupational levels. We also provide evidence on the specific personality traits that vary by firm type and occupational level. Our results raise the possibility that audit teams may suffer performance losses attributed to absence of different perspectives and lack of synergistic knowledge and information sharing.

Authors

• Stephen Kwaku Asare, University of Florida

• Herman van Brenk, Nyenrode Business University

• Kristina Colleen Demek, University of Central Florida