Zhu, Skye, Phang, Soon-Yeow, and Fargher, Neil (2020) The Impact of Thinking Approach on Offshore Auditors’ Judgment Quality. In: [Presented at the 2020 American Accounting Association Auditing Section Midyear Meeting]. -30. From: 2020 American Accounting Association Auditing Section Midyear Meeting, 16-18 January 2020, Houston, TX, USA.

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Abstract

There is concern regarding the quality of audit work conducted in offshore service centers (CAQ, 2015; PCAOB, 2015a, 2019). One criticism raised is that offshore auditors tend to adopt a more reductionist, “tick-box” approach to auditing. We examine whether the use of systems-thinking rather than reductionist thinking approach can improve offshore auditors’ judgment quality. We conducted a 2×2 quasi-experiment in which we manipulated thinking approach (systems versus reductionist thinking) between-subjects and compared the judgment quality of offshore and onshore auditors. Our results indicate that onshore auditors achieve higher judgment quality than offshore auditors for the analytical procedure task. We find some evidence of an interaction between offshore location and type of thinking approach. Our research provides support for continued concerns surrounding offshoring and is relevant to calls for maintenance of adequate quality control across both onshore auditors and offshore service centers.

Item ID:	76948
Item Type:	Conference Item (Presentation)
Keywords:	audit offshoring; auditor judgment; analytical procedures; reductionist-thinking; systems-thinking.
Related URLs:	https://aaahq.org/Meetings/2020/Auditing...
Copyright Information:	Subject to the journal and JCU protocols, The copyright of this paper will belong to the authors.
Date Deposited:	06 Dec 2022 00:07
FoR Codes:	35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350101 Accounting theory and standards @ 80% 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350199 Accounting, auditing and accountability not elsewhere classified @ 20%
SEO Codes:	11 COMMERCIAL SERVICES AND TOURISM > 1103 Property, business support services and trade > 110302 Professional, scientific and technical services @ 100%
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