An Investigation into Public Accounting Firms' Use of Tangible Rewards

• In Event: Continental Breakfast & Research and Education Forum
  In Paper Session: Table 16: Audit Firm Environment

Abstract

Prior research characterizes auditors’ accountability framework as one focused on punishment for outcomes, without rewards for quality and process. In the absence of an external environment of recognition, we examine the nature of recognition programs within public accounting firms. Using a survey of the Big Four accounting firms and three non-Big Four accounting firms, we examine the use of non-cash tangible rewards programs within public accounting firms to investigate the pervasiveness of these programs, as well as their purpose and effectiveness within this industry. We supplement this data through an additional survey of 75 employees of two of these firms to understand the perceived effectiveness of, and problems with these programs. We find that the firms examined use tangible rewards extensively, but that the purpose and effectiveness of the programs varies by firm. The evidence collected allows us to formulate an understanding of the current use of tangible rewards in public accounting firms and identify important areas of future research.

Authors

• Krista Fiolleau, University of Waterloo

• Carolyn MacTavish, Wilfrid Laurier University

• White Giselle, University of Waterloo