Performance Evaluations in Audit Firms: Evaluation Foci and Dysfunctional Behaviour

Research output: Contribution to journalJournal articleResearchpeer-review

706 Downloads (Pure)

Abstract

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.
Original languageEnglish
JournalInternational Journal of Auditing
Volume21
Issue number1
Pages (from-to)24-37
Number of pages14
ISSN1090-6738
DOIs
Publication statusPublished - Mar 2017

Keywords

  • Audit firms
  • Performance evaluation
  • Dysfunctional behaviour

Cite this