Team-Oriented Leadership and Auditors’ Willingness to Raise Audit Issues

59 Pages Posted: 21 Oct 2014 Last revised: 17 Dec 2019

See all articles by Mark W. Nelson

Mark W. Nelson

Cornell University - Samuel Curtis Johnson Graduate School of Management

Chad A. Proell

TCU - Neeley School of Business

Amy Randel

San Diego State University

Date Written: January 20, 2016

Abstract

This paper reports five studies examining audit team members’ willingness to raise audit issues. The first study is a survey of interacting audit teams that provides evidence that team members are more willing to speak up when they view their leader as team oriented (i.e., emphasizing team success as opposed to the leader’s own personal advancement). Experiments 1-3 provide converging evidence that audit seniors are more willing to speak up to a team-oriented leader and about issues that are aligned with that leader’s concerns. Experiment 4 provides evidence that the effect of team-oriented leadership on willingness to speak up is mediated by team members’ commitment to the team leader, and to a lesser extent by their identification with their team, but not by concerns about the immediate or eventual repercussions of speaking up. Together these studies provide evidence that auditors’ willingness to raise audit issues is affected by what the auditor has to say and how they think their message will be received, potentially affecting audit effectiveness and audit efficiency.

Keywords: Audit teams, information sharing, audit efficiency, audit effectiveness, audit risk, auditor performance assessment, leadership, employee voice, staff turnover, survey, experiment

JEL Classification: M4

Suggested Citation

Nelson, Mark W. and Proell, Chad A. and Randel, Amy, Team-Oriented Leadership and Auditors’ Willingness to Raise Audit Issues (January 20, 2016). Accounting Review, doi 10.2308/accr-51399, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2512262 or http://dx.doi.org/10.2139/ssrn.2512262

Mark W. Nelson

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

448 Sage Hall
Ithaca, NY 14853
United States
607-255-6323 (Phone)
607-254-4590 (Fax)

Chad A. Proell (Contact Author)

TCU - Neeley School of Business ( email )

M.J. Neeley School of Business
TCU Box 298530
Fort Worth, TX 76129
United States

Amy Randel

San Diego State University ( email )

San Diego, CA 92182-0763
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
1,378
PlumX Metrics