When subject matter experts are consulted during an audit, the quality of the expert’s advice depends upon their ability to fully understand and incorporate client-specific facts into their advice. PCAOB inspection reports suggest that auditors are neglecting to perform the required work to assess the quality of experts’ recommendations. This article summarizes a recent study by Wright and Bhattacharjee (2018) examining how receiving expert advice of different levels of quality and the timing of communication making auditors aware of the eventual use an expert impact auditors’ judgments. Auditors who were aware that an expert is going to be used put forth more effort before receiving the expert advice, and were less in agreement with management’s position, than auditors who were unaware. Upon receiving the advice, aware auditors were more discerning and accurate than unaware auditors, providing that the timing and communication of consulting decisions affect auditors’ assessments of expert advice.
PRACTITIONER SUMMARYThe Impact of Internal Subject Matter Expert Advice Quality and the Timing of Expert Use Awareness on Auditors’ Level of Effort and Subsequent Judgments
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Nicole S. Wright, Sudip Bhattacharjee; PRACTITIONER SUMMARYThe Impact of Internal Subject Matter Expert Advice Quality and the Timing of Expert Use Awareness on Auditors’ Level of Effort and Subsequent Judgments. Current Issues in Auditing doi: https://doi.org/10.2308/CIIA-2019-510
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