The Effect of On-the-Job Training on the Confidence of In Charge Auditors and Their Willingness to Train Others

• In Event: Auditor Interactions

Abstract

This research examines the role and characteristics of both one-on-one (informal) on-the-job training (OJT) and classroom-style (formal) OJT on in charge auditors’ confidence in their ability to perform at a high level on audit engagements and their propensity to train junior level staff. This study compares data collected in 1999 (pre-Sarbanes Oxley, or SOX), to data collected in 2014 (post-SOX). Results indicate that high levels of informal training elements result in higher levels of auditor confidence and perceptions of ability (and conversely lower levels resulted in lower perceptions). Both informal OJT and formal OJT impact perceptions to a significant degree, but as predicted the effect is greater for informal OJT than formal OJT. In addition, higher levels of informal OJT elements led to higher levels of these elements being passed on to lower level staff, mediated by the level of confidence in perceived ability. In terms of comparisons of the results over time periods, the results indicate that informal training is viewed similarly by seniors over time (marginally significant increase) and formal training has significantly improved over time. We identify environmental factors within firms that may influence these results and discuss the implications of these findings for enhancing OJT in auditing firms in order to enhance audit quality.

Authors

• Noah P Barsky, Villanova University

• Christine Earley, Providence College