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An analysis of the relation between resilience and reduced audit quality within the role stress paradigm

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  • Smith, Kenneth J.
  • Emerson, David J.

Abstract

This study examines the relation between individual resilience levels and reduced audit quality practices (RAQP) within the context of an expanded role stress model. The premise for this investigation is that while role stressors, stress arousal, and burnout may enhance the likelihood of RAQP, resilience has the potential to directly and indirectly reduce RAQP. This reduction in RAQP is hypothesized to be a consequence of resilience serving as an attenuating influence on the other factors. The sample consisted of 258 auditors from seven of the 10 largest US accounting firms in 2015. The expanded role stress model includes resilience, role conflict, role ambiguity, and role overload as exogenous antecedents, stress arousal and burnout as mediators, and RAQP as the dependent variable. Our findings show that higher levels of resilience are associated with lower reported levels of RAQP, as well as decreases in both stress arousal and burnout tendencies. The data also indicate that reduced audit quality practices still represent a serious issue for the profession, but also identify ways by which firms may be able to reduce their occurrence. Emanating from these findings, we suggest future research to investigate viable intervention strategies designed to counteract the damaging effects of stress before they manifest in negative consequences to the individual and the firm.

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  • Smith, Kenneth J. & Emerson, David J., 2017. "An analysis of the relation between resilience and reduced audit quality within the role stress paradigm," Advances in accounting, Elsevier, vol. 37(C), pages 1-14.
    • Handle: RePEc:eee:advacc:v:37:y:2017:i:c:p:1-14
    DOI: 10.1016/j.adiac.2017.04.003
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    Cited by:

    1. Mohannad Obeid Al Shbail, 2018. "The Effect of Role Ambiguity and Role Conflict on Dysfunctional Audit Behaviour: Evidence from Jordan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 17-25, July.
    2. David J. Emerson & Joseph F. Hair & Kenneth J. Smith, 2023. "Psychological Distress, Burnout, and Business Student Turnover: The Role of Resilience as a Coping Mechanism," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(2), pages 228-259, March.
    3. Dong, Bei & Nash, Jonathan & Xu, Le, 2022. "Indirect effects of regulatory change: Evidence from the acceleration of the 10-K filing deadline," Advances in accounting, Elsevier, vol. 56(C).
    4. Al Shbail, Mohannad & Salleh, Zalailah & Mohd Nor, M. N., 2018. "Antecedents of burnout and its relationship to internal audit quality," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(4), pages 789-817, August.
    5. Smith, Kenneth J. & Emerson, David J. & Haight, Timothy D. & Mauldin, Shawn & Wood, Bob G., 2019. "An examination of the psychometric properties of the Connor-Davidson Resilience Scale-10 (CD-RISC10) among accounting and business students," Journal of Accounting Education, Elsevier, vol. 47(C), pages 48-62.
    6. Mohannad Obeid Al Shbail, 2018. "A Theoretical Discussion of Factors Affecting the Internal Audit Quality in Jordanian Public Shareholding Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(2), pages 218-227, April.
    7. Chantal Mangion & Norbert Tabone & Peter J. Baldacchino & Simon Grima, 2021. "Audit Quality and Resilience beyond the Role Stress Model: A Maltese Perspective," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(3), pages 37-56.
    8. Mihai Carp & Costel Istrate, 2021. "Audit Quality under Influences of Audit Firm and Auditee Characteristics: Evidence from the Romanian Regulated Market," Sustainability, MDPI, vol. 13(12), pages 1-16, June.

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