Do Auditors Objectively Evaluate Their Subordinates' Work?

The Accounting Review Vol. 76, No. 1 (Jan., 2001), pp. 99-110

University of Alberta School of Business Research Paper No. 2013-1035

Posted: 1 Jul 2013

See all articles by Hun-Tong Tan

Hun-Tong Tan

Nanyang Business School, Nanyang Technological University

Karim Jamal

University of Alberta - Department of Accounting, Operations & Information Systems

Date Written: June 1, 2000

Abstract

Finds that average audit managers judge notes written by outstanding subordinates (seniors) more favourably than those written by average seniors. Conducts a survey of 20 audit managers and 40 seniors from two of the Big 5 US auditors, in which each senior writes a memo on the key issues in a case to a specific manager. Asks managers to score the memo for quality, then repeats the exercise, this time anonymously, three weeks later. Separates outstanding from average managers and shows that outstanding managers evaluate the memos of outstanding seniors consistently, but average managers do not, giving known outstanding seniors high notes. Concludes that the outstanding managers are more objective, and seniors need to rotate managers so as to have a chance of fair judgement.

Suggested Citation

Tan, Hun-Tong and Jamal, Karim, Do Auditors Objectively Evaluate Their Subordinates' Work? (June 1, 2000). The Accounting Review Vol. 76, No. 1 (Jan., 2001), pp. 99-110, University of Alberta School of Business Research Paper No. 2013-1035, Available at SSRN: https://ssrn.com/abstract=2279048

Hun-Tong Tan (Contact Author)

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore
+65 6790 4819 (Phone)
+65 6793 7956 (Fax)

Karim Jamal

University of Alberta - Department of Accounting, Operations & Information Systems ( email )

Edmonton, Alberta T6G 2R6
Canada
780-492-5829 (Phone)
780-492-3325 (Fax)

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