Audit Partners' Co-Working Experience and Audit Outcomes

What is it about?

The paper examines the co-working experience between the lead and concurring audit partners. We find that audit quality and audit efficiency are higher when the two engagement audit partners have more co-working experience. In addition, the positive association between co-working experience and audit outcomes is more evident when co-working experience is more intensive, the two partners are more accessible to each other, the audit firm is less experienced with the client or less knowledgeable about the client's industry, or client audit risks are higher.

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Photo by Hannah Busing on Unsplash

Photo by Hannah Busing on Unsplash

Why is it important?

While increases in auditors’ and audit firms’ experience with clients presumably foster learning and knowledge acquisition about their clients, auditors’ experience and interactions with other audit team members can also be a source of learning and knowledge acquisition. However, there is little research on this form of experience among audit team members and their interactions. Our research examines co-working experience between the lead and concurring audit partners to gain insights into the role of prior interactions among audit team members on current audit engagement quality and efficiency.

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