Performance in Geographically Distributed Audit Teams Within Local Offices: The Roles of Shared Context, Communication, and Accountability

• In Event: Audit Market Competition & Audit Location

Abstract

Auditors work at different locations, from international audits to (more commonly) within-office audits (i.e., within-office distribution). We develop and test a conceptual model that anticipates determinants of performance in within-office geographically distributed teams. To test the model, we use an experiential questionnaire to gather data from 123 auditing professionals who worked on engagements with varying levels of within-office distribution. We predict and find that greater geographic distribution is negatively associated with auditors’ perceptions of engagement performance. Further, greater geographic distribution is negatively associated with both auditors’ sense of shared context (i.e., common norms and expectations) and team communication (i.e., quality, ease, and spontaneity), both of which mediate the direct effect of distribution on perceived engagement performance (with varying significance in terms of quality, timeliness, and creativity in audit approach). Notably, these mediating effects of shared context and communication exist when auditors’ sense of accountability (to the team, office, audit firm, and individual motivation to perform well) is low, but not when accountability is high, implying that accountability interventions have the potential to aid performance quality in distributed teams.

Authors

• Karla Johnstone, University of Wisconsin-Madison

• Denise Downey, Villanova University

• Kara Obermire, Oregon State University