The copycat effect: do social influences allow peer team members' dysfunctional audit behaviors to spread throughout the audit team?

Abstract

PurposeThis study seeks to identify the role that peer team members' behaviors and superiors' preferences play in influencing the likelihood that staff auditors engage in dysfunctional audit behavior (DAB).Design/methodology/approachThis study uses an experiment that manipulates peer team member behavior (DAB present or DAB absent) and superior preference (efficiency or effectiveness). Students enrolled in a graduate accounting course, proxying for inexperienced staff auditors, receive an internal control sample selection task. Participants assess the likelihood that a typical staff auditor would engage in DAB or non-DAB.FindingsFirst, staff auditors with a peer team member who engages in DAB are more likely to engage in DAB. Second, staff auditors who have a superior with a preference toward efficiency are more likely to engage in DAB. Finally, when considered simultaneously, the effect of the superior's preference on the likelihood of staff auditors engaging in DAB is not different for staff auditors, subject to a peer engaging in DAB versus those subject to a peer who engaged in a non-DAB.Research limitations/implicationsThis study uses a hypothetical audit team, a written script of team member communication, and students proxying for inexperienced staff auditors. As such, future studies might consider improving the realism of the team setting, the manner in which a message is portrayed, and implications at higher levels within the audit team hierarchy.Practical implicationsTeam interactions contribute to the prevalence of DAB within the profession. Specifically, inexperienced auditors are influenced by the behavior of peer and superior team members and this may be one cause of the prevalence of DAB within the profession. As such, future firm considerations could include well-structured mentorship programs and rewards structures.Originality/valueThis study adds to the audit team literature by investigating the influence of audit team dynamics on staff auditors' behaviors. This paper extends the current audit team literature, that is mostly focused on supervisor–subordinate relationships, by investigating social influences from peers and superiors. This study's findings inform public accounting firms of areas in which personnel may negatively affect audit quality through intra-team interactions.

Work Overload, Time Pressure and Social Influence on the Work Efficiency of the Financial and Tax Auditor: Evidence from Peru

“…In this way, it is concluded in the same line with other studies carried out on accounting and auditing personnel. (Chávez-Díaz et al, 2024;Johari et al, 2019;Wetmiller, 2022).…”

“…The pressure coming from the people with whom the auditor interacts, whether they are superiors or peers, is called social influence pressure. While it is true that social influence is positive in fostering employee engagement in collaborative economy and audit quality issues, it is also true that social influence theory states that the behaviors of individuals are susceptible to change through the induced behaviors of others (Wetmiller, 2022).…”

Effects of professional commitment, commitment to ethics, internal locus of control and emotional intelligence on the ability to detect fraud through reduced audit quality behaviors

“…Furthermore, this investigation focuses on internal auditors considering that internal auditors are part of the organizational structure and have high interaction with auditees. Interactions between auditors and auditees contribute enormously to the spread of negative behavior that can reduce audit quality (Wetmiller, 2022), especially the behavior of internal auditors in accepting weak auditee explanations. This study also contributes to internal audit practices by assessing the implementation of professional commitment, commitment to ethics, internal locus of control and emotional intelligence.…”