Do Auditors Objectively Evaluate Their Subordinates' Work?
The Accounting Review Vol. 76, No. 1 (Jan., 2001), pp. 99-110
Posted: 1 Jul 2013
Date Written: June 1, 2000
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.
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