The art of compromise? The individual and organisational legitimacy of “irregular auditing”

Abstract

PurposeIrregular auditing practices, such as false sign‐off, are evidence that proper implementation of work programmes by audit fieldworkers is not always achieved. That such behaviours have been widely attested in the literature raises important questions about the impact they have on the audit engagement. In order to get further insight into the phenomenon, seeks to adopt a qualitative approach, deemed appropriate to complement the mostly quantitative studies available in the literature.Design/methodology/approachThe research is based on 15 semi‐directive interviews performed with current and former French audit seniors. The interviews were meant to highlight the role of irregular auditing in view of the individual and organisational strive for legitimacy that characterises the audit profession.FindingsThe research showed that, far from being systematically dysfunctional, irregular auditing plays an important role in audit firms, and that it can only be understood in view of the nested personal (individual auditor), organisational (audit firm) and institutional (auditing as a profession) constraints of the audit environment.Research limitations/implicationsOwing to the limited number of interviews and their situated context, the study has an exploratory nature. Its findings are used to provide recommendations for future research into various aspects of auditor performance.Originality/valueThe study of irregular auditing has major consequences for understanding of the professional status of audit fieldworkers. It also provides insights into the recent evolution of auditing methods and of the profession's ideology.

The Impact of Perceived Ethical Culture of the Firm and Demographic Variables on Auditors’ Ethical Evaluation and Intention to Act Decisions

“…Furthermore, ethical sensitivity was not examined in this study, and respondents may not have identified these behaviours as involving an ethical dilemma. Conflicting arguments have been presented in the literature on the ethicality of URT (AndersonGough et al, 2001;Sweeney and Pierce, 2006) and QTB (Herrbach, 2005;Pierce and Sweeney, 2006). Finally, the measures of perceived ethical culture include statements with truncated response possibilities.…”

Social network contingency, symbolic management, and boundary stretching

“…This study is the first to show that a firms' choice to stretch the boundaries of its practices is contingent on its structural position within its social network. Our focus on this contingency role of social networks distinguishes our approach from previous work that has tended to focus on the diffusion of new practices (Adithipyangkul et al ., 2011;Davis, 1991;Fligstein, 1985;Haunschild, 1993;Herrbach, 2005;Snyder et al ., 2009). While existing research has uncovered the mechanisms though which interlocks facilitate the adoption of new practices, it has not yet addressed the effect of firms' structural positions on boundary stretching.…”

“…Social network theorists claim that social networks can be used as a mechanism for cooptation (Mizruchi, 1996). Our focus on the effect of a firm's structural position within corporate interlocks on boundary stretching practices distinguishes our approach from previous studies on interlocks that focus on the diffusion process of new practices within social networks (Adithipyangkul et al ., 2011;Davis, 1991;Fligstein, 1985;Haunschild, 1993;Herrbach, 2005;Khanna and Thomas, 2009;Snyder, Priem, and Levitas, 2009).…”

Understanding Audit Quality & Talent Management of Auditors in Practice through Content Analysis & Interviews

“…Cheng et al (2009)), supervision (e.g. Herrbach (2005)), work-life-balance (e.g. Ladva and Andrew (2014)).…”