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How Does Intrinsic Motivation Improve Auditor Judgment in Complex Audit Tasks?

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  • Kathryn Kadous
  • Yuepin (Daniel) Zhou

Abstract

Intrinsic motivation is generally thought to be positively associated with performance on a variety of tasks. However, there is only sparse experimental evidence supporting this idea and we know little about the specific mechanisms behind any effect. We develop theory about how auditors’ intrinsic motivation for their jobs can improve their judgments about complex accounting estimates. We experimentally test whether a prompt to make auditors’ intrinsic motivation for their jobs salient improves the specific information processing behaviors necessary for high‐quality judgments in complex audit tasks. It does: Prompted auditors attend to a broader set of information, process information more deeply, and request more relevant additional evidence. Supplemental analyses show that these processing behaviors mediate between salient intrinsic motivation and an improved ability to identify a biased complex estimate. Our theory and analyses indicate that auditors’ intrinsic motivation for their work provides unique value for improving judgment quality, particularly in the context of performing complex audit tasks. Our study supports the view that high‐quality cognitive processing can improve auditors’ professional skepticism by providing a foundation for skeptical judgments. Comment la motivation intrinsèque améliore‐t‐elle le jugement des auditeurs dans les tâches d'audit complexes? L'on s'entend généralement sur l'existence d'un lien positif entre la motivation intrinsèque et le rendement dans l'exécution de diverses tâches ; les données expérimentales confirmant la présence de ce lien sont toutefois peu nombreuses, et nous connaissons mal les mécanismes précis qui lui servent de vecteur. Les auteurs élaborent une théorie quant aux modalités selon lesquelles la motivation intrinsèque des auditeurs, dans l'exercice de leurs fonctions, peut améliorer leur jugement à l’égard des estimations comptables complexes. Ils procèdent à un test expérimental afin de déterminer si un encouragement visant à stimuler la motivation intrinsèque des auditeurs dans leur travail améliore les comportements spécifiques de traitement de l'information nécessaires à la formulation de jugements de qualité dans des tâches d'audit complexes. Les résultats du test se révèlent positifs : les auditeurs dont la motivation intrinsèque est stimulée s'intéressent à un éventail plus large d'informations, approfondissent davantage le traitement de ces informations et réclament des éléments probants supplémentaires plus pertinents. Des analyses complémentaires indiquent que ces comportements à l’égard du traitement de l'information ont un effet de médiation entre la motivation intrinsèque stimulée et une capacité accrue de percevoir les estimations complexes peu fiables. Selon la théorie et les analyses des auteurs, la motivation intrinsèque des auditeurs dans leur travail joue un rôle exclusif dans l'amélioration de la qualité du jugement, en particulier dans le contexte de tâches d'audit complexes. L’étude confirme l'idée selon laquelle un traitement cognitif de qualité supérieure peut nourrir l'esprit critique des auditeurs en servant de base à des jugements circonspects.

Suggested Citation

  • Kathryn Kadous & Yuepin (Daniel) Zhou, 2019. "How Does Intrinsic Motivation Improve Auditor Judgment in Complex Audit Tasks?," Contemporary Accounting Research, John Wiley & Sons, vol. 36(1), pages 108-131, March.
    • Handle: RePEc:wly:coacre:v:36:y:2019:i:1:p:108-131
    DOI: 10.1111/1911-3846.12431
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    2. Dzhumashev, Ratbek & Levaggi, Rosella & Menoncin, Francesco, 2023. "Optimal tax enforcement with productive public inputs," Economic Modelling, Elsevier, vol. 126(C).
    3. Sanaz Aghazadeh & Yoon Ju Kang & Marietta Peytcheva, 2023. "Auditors’ scepticism in response to audit committee oversight behaviour," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2013-2034, June.
    4. Bustos-Contell, Elisabeth & Porcuna-Enguix, Luis & Serrano-Madrid, José & Labatut-Serer, Gregorio, 2022. "Female audit team leaders and audit effort," Journal of Business Research, Elsevier, vol. 140(C), pages 324-331.
    5. Iryna Alves & Miguel Limão & Sofia M. Lourenço, 2024. "Work Overload, Work–Life Balance and Auditors' Turnover Intention: The Moderating Role of Motivation," Australian Accounting Review, CPA Australia, vol. 34(1), pages 4-28, March.
    6. Ruhnke, Klaus, 2023. "Empirical research frameworks in a changing world: The case of audit data analytics," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    7. Kathryn Kadous & Chad A. Proell & Jay Rich & Yuepin (Daniel) Zhou, 2019. "It Goes without Saying: The Effects of Intrinsic Motivational Orientation, Leadership Emphasis of Intrinsic Goals, and Audit Issue Ambiguity on Speaking Up," Contemporary Accounting Research, John Wiley & Sons, vol. 36(4), pages 2113-2141, December.
    8. Peters, Christian P. H., 2023. "The microfoundations of audit quality," Other publications TiSEM 6a2b12a5-6060-4544-883b-e, Tilburg University, School of Economics and Management.

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