Auditor Integration of IT Specialist Input on Internal Control Issues: How a Weaker Team Identity Can Be Beneficial.

• In Event: Audit team communication/knowledge sharing

Abstract

I investigate how auditors integrate information technology (IT) specialist input into internal control over financial reporting (ICFR) issue classifications. Given the ill-structured nature of ICFR issue classification and the importance of appropriate classification due to the potential impact on audit quality, combining knowledge from different perspectives is likely beneficial. Drawing on social identity theory, I predict and find benefits result from a weaker one-team identity between auditors and IT specialists. Specifically, I find auditors with a weaker versus stronger team identity place more weight on IT specialist input for IT-related issues and are more likely to differentiate between more and less accurate input. My study provides a better understanding of how team identity influences auditor integration of input from specialists. The implications of my study are of interest to researchers, regulators, and practitioners, especially as recent firm initiatives push auditors and IT specialists to view themselves as one team.

Author

• Cassandra Estep, Emory University