Promoting Proactive Auditing Behaviors

Abstract

We introduce the construct of auditor proactivity to the accounting literature. Since auditors
work in complex, dynamic environments where complete directives are often unavailable,
auditors need to be proactive to achieve quality audit outcomes. However, proactivity is often
lacking in practice. Thus, we position auditor proactivity as a valuable but scarce determinant of
audit quality. Drawing on theory from management, accounting, and psychology, we test
hypotheses about how environmental and dispositional factors interact to encourage proactive
auditing behaviors. Using an experiment, we find that auditors are more proactive when they
have both higher autonomy and higher tacit knowledge compared to when either or both of these
factors are absent. Our theory and findings inform academics, regulators, and practitioners about
how work environments and policies could be modified to promote proactive auditing behaviors.

Keywords: proactive behaviors, autonomy, tacit knowledge, regulatory focus, audit quality