The Effects of Task Complexity on Auditors' Performance: The Impact of Accountability and Knowledge

Abstract

This study delineates conditions under which performance is adversely affected by task complexity and reports-related empirical evidence. Specifically, it examines the moderating roles of both accountability and knowledge on the relation between task complexity and auditors' performance. Based on a reanalysis of the data from Tan and Kao (1999), the results indicate that accountability and knowledge jointly moderate the relation between task complexity and performance. Results show that performance declines with increasing complexity only under combinations of low knowledge and high accountability, or low accountability and high knowledge. Performance is unaffected by increasing task complexity when auditors have high knowledge and high accountability, or have low knowledge and low accountability. These findings contribute to a better understanding of the conditions under which performance may (or may not) be adversely affected by task complexity.

Mandatory Disclosure of the Engagement Partner's Identity: Potential Benefits and Unintended Consequences

“…Consistent with prior studies in psychology, accounting researchers confirm that increased accountability leads to better performance, but only when the reason for the prior poor performance is a lack of effort and attention, not when poor performance is caused by a lack of resources or task complexity (e.g., Kennedy 1993;Libby et al 2004). Also, while increased effort, resulting from the increased accountability, can partially substitute for the lack of knowledge in some tasks (Cloyd 1997), such substitution is not complete (Cloyd 1997) and very often is not sufficient (Glover 1997;Tan and Kao 1999;Tan et al 2002). Figure 5 graphically illustrates the conditions when accountability has positive, negative, or no impact on decisions.…”

“…With the exception of Gibbins and Newton (1994), the majority of empirical evidence on the impact of accountability in accounting settings comes from experiments and follows the traditions of social psychology (e.g., Asare et al 2000;Buchman et al 1996;Cloyd 1997;Cohen and Trompeter 1998;DeZoort et al 2006;Glover 1997;Hoffman and Patton 1997;Johnson and Kaplan 1991;Kennedy 1993;Libby et al 2004;Rich 2004;Tan and Kao 1999;Tan et al 1997;Turner 2001;Tan et al 2002;Wilks 2002). Tetlock (1985), a major contributor to this tradition, explores the political aspects of decision making under uncertainty and emphasizes accountability as the inherent feature of social environments.…”

Pengaruh Kompleksitas Tugas, Tekanan Waktu, dan Sifat Kepribadian pada Kinerja

“…Dalam kondisi pekerjaan yang kompleks, auditor tidak hanya harus bekerja lebih keras, namun auditor juga memperoleh pengetahuan dan pengalaman dalam menyelesaikan penugasan audit yang diberikan. Di sisi lain, hasil yang bertolakbelakang diperlihatkan Tan et al (2002) yang meneliti interaksi variabel akuntabilitas dan pengetahuan pada hubungan kompleksitas kerja dan kinerja auditor. Penelitian tersebut menemukan bahwa kompleksitas tugas menyebabkan penurunan kinerja apabila auditor memiliki pengetahuan yang rendah, namun tidak mempengaruhi kinerja auditor yang memiliki pengetahuan yang tinggi.…”

Hubungan tekanan akuntabilitas, audit judgement performance, dan effort

“…Judgment sering dibutuhkan oleh auditor dalam melaksanakan audit atas laporan keuangan suatu entitas (Zulaikha 2006 (Peecher 1996) dan review (Tan dan Kao 1999;Tan et al 2002). Studi ini mendukung gagasan bahwa auditor dengan tekanan akuntabilitas tinggi akan memiliki audit judgment performance yang lebih baik.…”

“…Tugas yang telah dilakukan oleh auditor akan direview oleh auditor senior, dimana akan menciptakan tekanan akuntabilitas bagi staf auditor dengan memberikan tambahan motivasi untuk menghindari hasil yang negatif seperti kritik, atau mengejar hasil positif seperti pujian atau promosi (DeZoort et al 2006). Studi terdahulu telah mengukur hal yang serupa: tekanan akuntabilitas melalui jaminan bahwa pekerjaan auditor staf akan direviw oleh senior auditor (Tan dan Kao 1999;Tan et al 2002).…”