TY - JOUR
T1 - Performance Evaluations in Audit Firms
T2 - Evaluation Foci and Dysfunctional Behaviour
AU - Riise Johansen, Thomas
AU - Christoffersen, Jeppe
PY - 2017/3
Y1 - 2017/3
N2 - Previous research has only minimally examined the association between the behaviour and performance evaluations of individual auditors beyond the use of efficiency-focused evaluations. We examine the association between dysfunctional auditor behaviour and three evaluation foci: an efficiency focus, a client focus and a quality focus. Our results, which are based on questionnaire responses from 196 auditors, demonstrate that an efficiency focus is not associated with dysfunctional behaviour. A client focus is found to be associated with dysfunctional behaviour. Finally, and perhaps most importantly, our results show that it seems possible to limit dysfunctional behaviours through a quality focus in performance evaluations. Our results provide insights of use to practitioners and regulators on how performance evaluations may not only induce but also reduce dysfunctional auditor behaviours.
AB - Previous research has only minimally examined the association between the behaviour and performance evaluations of individual auditors beyond the use of efficiency-focused evaluations. We examine the association between dysfunctional auditor behaviour and three evaluation foci: an efficiency focus, a client focus and a quality focus. Our results, which are based on questionnaire responses from 196 auditors, demonstrate that an efficiency focus is not associated with dysfunctional behaviour. A client focus is found to be associated with dysfunctional behaviour. Finally, and perhaps most importantly, our results show that it seems possible to limit dysfunctional behaviours through a quality focus in performance evaluations. Our results provide insights of use to practitioners and regulators on how performance evaluations may not only induce but also reduce dysfunctional auditor behaviours.
KW - Audit firms
KW - Performance evaluation
KW - Dysfunctional behaviour
KW - Audit firms
KW - Performance evaluation
KW - Dysfunctional behaviour
U2 - 10.1111/ijau.12079
DO - 10.1111/ijau.12079
M3 - Journal article
VL - 21
SP - 24
EP - 37
JO - International Journal of Auditing
JF - International Journal of Auditing
SN - 1090-6738
IS - 1
ER -