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THE EFFECT OF AUTONOMY ON AUDITORS’ UNDERREPORTING OF HOURS AND THE IMPACT OF AN EMPHASIS ON HARM

Barnhart, Luke
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Abstract
Audit firms are increasingly moving towards providing their employees with more autonomy. While there are studies that support this movement by documenting that higher autonomy leads to a variety of benefits, there are also studies that show higher autonomy can lead to an increase in rule breaking behavior. Using an experiment with professional auditor participants, I examine how autonomy impacts auditor time underreporting—a counterproductive workplace behavior with negative implications for audit quality. My findings show that higher autonomy leads to increased underreporting. I further develop and test a theory-based intervention designed to mitigate this effect. This intervention relies on emphasizing the potential harm that can be caused by underreporting. My findings show the intervention to be effective. Together, these findings encourage a more nuanced interpretation of the potential risks and benefits of increasing auditor autonomy, and they provide insight for audit firms determining whether and how to provide auditors with more autonomy.
Type
Dissertation (Open Access)
Date
2025-05
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Attribution-NonCommercial 4.0 International
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http://creativecommons.org/licenses/by-nc/4.0/
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