The impact of emotional intelligence on auditor judgment

Yang, Ling; Brink, Alisa G.; Wier, Benson

doi:10.1111/ijau.12106

Cited by 32 publications

(41 citation statements)

References 56 publications

(110 reference statements)

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“…Previous studies show that audit fees may be positively associated with perceived risk (Lyon, 2005). Yang (2018) concludes that audit fees are positively related with the company's specific financial, strategic, and operational risks. Previous studies also demonstrate that companies in which there are relevant deficiencies in internal controls have significantly higher audit fees (Hogan & Wilkins, 2008;Munsif, Raghunandan, Rama & Singhvi, 2011).…”

Section: Feesmentioning

confidence: 90%

Analysis of the relationship between company characteristics and key audit matters disclosed

Ferreira

Morais

2020

Rev. contab. finanç.

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The general objective of this study is to analyze whether the particularities of audited companies influence the volume of key audit matters (KAMs). Its specific objectives are to identify the number of KAMs disclosed by Brazilian companies and analyze the main factors associated with their disclosure. The paper aims to contribute to an area of investigation still lacking in studies that analyze the factors affecting KAM disclosure, which makes audit reports more individualized. The study contributes to understanding the main auditing issues in Brazilian companies that auditors consider relevant, by providing evidence on factors associated with their disclosure. This research is relevant for agencies that issue auditing standards and for financial information users. For issuers of auditing standards, the study is relevant because it identifies the factors associated with KAM disclosure, enabling it to be confirmed that the new audit report model has contributed to its destandardization. For financial information users, the study demonstrates that KAM disclosure varies from company to company, thus contributing to greater transparency of the audit report. Data were collected from the Audit Reports and Consolidated Financial Statements of the 447 Brazilian companies listed on the São Paulo Securities, Commodities, and Futures Exchange (BM&FBovespa), on December 31st of 2016, and an ordinary least squares (OLS) regression was applied to the defined model. The results show a positive relationship between the number of KAMs disclosed and both the auditor being a Big 4 and the complexity of the audited company. The auditor’s fees and auditor’s opinion being modified show a negative relationship with the number of KAMs. The article is relevant for companies, auditors, and regulatory and supervisory bodies as it identifies company characteristics that influence KAM disclosure and are determinants for the non-standardization of the auditor’s report.

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Section: Feesmentioning

confidence: 90%

Analysis of the relationship between company characteristics and key audit matters disclosed

Ferreira

Morais

2020

Rev. contab. finanç.

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“…Practices can include periodic exercises unrelated to the specific audit matter in order to best prepare deliberative acuity (Griffith et al, 2015). Other means are to review case studies (Gribbin & Saini, 2016) or engage in emotional intelligence activities (Yang, Brink, & Wier, 2018).…”

Section: Practical Means To Improve Auditor Critical Thinkingmentioning

confidence: 99%

Critical thinking for the federal auditor

McClure-Nelson¹

2020

Defense ARJ

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In the overly constrained space of the federal audit environment, to what extent can critical thinking skills be applied in a profession characterized by arduous public trust expectations, controlling auditing standards, prescriptive federal acquisition policies, frequently changing guidance, continual peer oversight, and the slow implementation of audit findings? Promoting the increased use of private sector auditors may suggest that federal auditors perceive competencies differently. However, a recent survey administered to 645 auditors of a federal audit agency region indicated that the majority of the core competencies identified by the American Institute of Certified Public Accountants are perceived as relevant in auditing government contractors. However, of concern, the data were mixed in support of critical thinking as an important competency. Given employer preference for skills in this area, the author attempts to identify applications to increase auditor critical thinking skills and to offer suggestions for increasing the relevance of the federal audit.

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“…Auditing is a frantic occupation that causes pressure on auditors (Fisher, 2001) that fetch damaging outcomes. Negative behaviours of auditors are caused by different pressures and lessen the quality of audit, emotional intelligence ability can help auditors in avoiding indulgence in these behaviours (Yang, Brink, & Wier, 2018). Grounding on the role of emotional intelligence at work across different contexts and its ability to negatively affect harmful workplace behaviours, it can be inferred that emotional intelligence can reduce auditors engagement in quality threatening audit behaviours.…”

Section: R E S E a R C H H I G H L I G H T Smentioning

confidence: 99%

Can Emotional Intelligence Help in Reducing Auditorâ€™s Engagement in Quality Threatening Behaviours?

et al. 2018

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Quality Threatening Behaviours (QTBs) in auditing are associated with reduced audit quality and are under the focus of researchers and practitioners for the last two decades following the major corporate failures around the globe. QTBs are a constant threat for audit profession and lawmakers, regulatory bodies, practitioners and researchers are striving to reduce auditorsâ€™ engagement in these undesirable behaviours. Existing literature advocates that emotional intelligence (EI) meaningfully affects workplace behaviours. Wong and Law (2002) affirm that emotional intelligence is linked to job performance. Emotionally intelligent individuals respond to negative issues related to work in a better way (Greenidge, Devonish, & Alleyne, 2014). On the other hand, individuals who score low on emotional intelligence face problems in regulating emotions instigated by negative work practices reacting in a manner that can be detrimental for the organization and its members (Quebbeman and Rozell, 2002). Emotional intelligence is equally important for individuals in the accounting profession (Daff, de Lange, & Jackling, 2012). Akers and Porter (2003) proclaim that â€œEI skills are critical for the success of the accounting professionâ€ (p. 65). Auditing is a frantic occupation that causes pressure on auditors (Fisher, 2001) that fetch damaging outcomes. Negative behaviours of auditors are caused by different pressures and lessen the quality of audit, emotional intelligence ability can help auditors in avoiding indulgence in these behaviours (Yang, Brink, & Wier, 2018). Grounding on the role of emotional intelligence at work across different contexts and its ability to negatively affect harmful workplace behaviours, it can be inferred that emotional intelligence can reduce auditors engagement in quality threatening audit behaviours.

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The impact of emotional intelligence on auditor judgment

Cited by 32 publications

References 56 publications

Analysis of the relationship between company characteristics and key audit matters disclosed

Analysis of the relationship between company characteristics and key audit matters disclosed

Critical thinking for the federal auditor

Can Emotional Intelligence Help in Reducing Auditorâ€™s Engagement in Quality Threatening Behaviours?

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