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We examine whether a promotion focus improves audit reviewers’ detection of conclusion deficiencies, which occur when auditors fail to integrate their individual audit test work into their holistic evaluation of account balances. These deficiencies are particularly concerning when the audit evidence set includes inconsistencies. A promotion focus is a frame of mind that broadens attention and encourages big picture thinking, whereas a prevention focus narrows attention and emphasizes avoiding mistakes. In two experiments, we provide evidence that a promotion focus improves reviewers’ detection of conclusion deficiencies when considering inconsistent evidence. Specifically, we find that a promotion focus increases reviewers’ identification of inconsistencies among evidence items and the extent to which they link these items to their evaluations of the overall sufficiency of evidence. Moreover, promotion focused reviewers are more likely to communicate inconsistent evidence to the engagement manager. Communicating issues for follow-up is important because quality control necessitates either conducting additional procedures or proposing an adjustment. In sum, we find that an intervention encouraging a promotion focus improves auditors’ review of complex evidence sets containing items that are inconsistent with client assertions.
Jacqueline S Hammersley, University of Georgia
Justin Leiby, University of Illinois at Urbana-Champaign
Christy Sims Nielson, The University of Mississippi