The association between audit manager and auditor-in- charge experience, effort, and risk responsiveness

Christine Contessotto, W. Robert Knechel, Robyn A. Moroney

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Audit quality is dependent on the experience and effort of the audit team to identify and respond to client risks (risk responsiveness). Central to each team are the core role holders who plan and execute the audit. While many studies treat the partner as the primary core role holder, the manager and auditor-in-charge (AIC) are also important. Using data for engagements from two midtier firms, we analyze the association between the experience and relative effort of the manager and AIC and risk responsiveness. We find a manager’s client-specific experience is associated with risk responsiveness for non-listed clients but find no evidence that the general or industry experience of a manager, or the experience of the AIC, is associated with risk responsiveness. The client-specific experience and relative effort of the partner is associated with risk responsiveness. These results suggests that managers can provide an important, albeit limited, contribution to the audit.

Original languageEnglish
Pages (from-to)121-147
Number of pages27
JournalAuditing
Volume38
Issue number3
DOIs
Publication statusPublished - Aug 2019

Keywords

  • Audit experience
  • Client-specific experience
  • Core role holder
  • Industry experience
  • Risk responsiveness

Cite this

Contessotto, Christine ; Knechel, W. Robert ; Moroney, Robyn A. / The association between audit manager and auditor-in- charge experience, effort, and risk responsiveness. In: Auditing. 2019 ; Vol. 38, No. 3. pp. 121-147.
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The association between audit manager and auditor-in- charge experience, effort, and risk responsiveness. / Contessotto, Christine; Knechel, W. Robert; Moroney, Robyn A.

In: Auditing, Vol. 38, No. 3, 08.2019, p. 121-147.

Research output: Contribution to journalArticleResearchpeer-review

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