The Impact of Thinking Approach on Offshore Auditors’ Judgment Quality
Conference Contribution ResearchOnline@JCUAbstract
There is concern regarding the quality of audit work conducted in offshore service centers (CAQ, 2015; PCAOB, 2015a, 2019). One criticism raised is that offshore auditors tend to adopt a more reductionist, “tick-box” approach to auditing. We examine whether the use of systems-thinking rather than reductionist thinking approach can improve offshore auditors’ judgment quality. We conducted a 2×2 quasi-experiment in which we manipulated thinking approach (systems versus reductionist thinking) between-subjects and compared the judgment quality of offshore and onshore auditors. Our results indicate that onshore auditors achieve higher judgment quality than offshore auditors for the analytical procedure task. We find some evidence of an interaction between offshore location and type of thinking approach. Our research provides support for continued concerns surrounding offshoring and is relevant to calls for maintenance of adequate quality control across both onshore auditors and offshore service centers.
Journal
N/A
Publication Name
2020 American Accounting Association Audit Midyear
Volume
N/A
ISBN/ISSN
N/A
Edition
N/A
Issue
N/A
Pages Count
24
Location
Houston, TX, USA
Publisher
American Accounting Association
Publisher Url
N/A
Publisher Location
Houston, TX, USA
Publish Date
N/A
Url
N/A
Date
N/A
EISSN
N/A
DOI
N/A