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Auditors' Responses to Workload Imbalance and the Impact on Audit Quality

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  • Jin Suk Heo
  • Soo Young Kwon
  • Hun‐Tong Tan

Abstract

Using detailed data for fieldwork hours and audit hours by rank from audit engagements in Korea, we examine whether audits conducted under workload imbalance, proxied by busy‐season audits, impair audit quality, and how auditors adjust staff assignments for busy‐season audits. We generally find that busy‐season audits are associated with lower audit quality, and that audit firms reduce the involvement of senior auditors during busy‐season audits. In addition, the greater the involvement of senior auditors and junior auditors, the lesser the deterioration in audit quality. Finally, although there is no increase in interim audits in response to workload imbalance during busy seasons, increasing interim audits can mitigate the negative impact of busy‐season audits on audit quality. Our results are relevant to auditors and regulators, who have expressed concerns about the adverse effects of workload imbalance on audit quality. Déséquilibre de la charge de travail : réactions des auditeurs et incidence sur la qualité de l'audit Les auteurs analysent des données exhaustives concernant les heures de travail sur le terrain et les heures d'audit selon le rang, tirées de missions d'audit réalisées en Corée, afin de déterminer, d'une part, si la réalisation d'audits en situation de déséquilibre de la charge de travail — selon la variable substitutive des audits de la période de pointe — est préjudiciable à la qualité de l'audit et, d'autre part, comment les auditeurs ajustent les affectations de personnel aux audits de la période de pointe. De façon générale, les auteurs constatent que les audits de la période de pointe sont associés à une qualité inférieure de l'audit et que les cabinets d'audit réduisent la participation des responsables de mission aux audits de la période de pointe. En outre, plus la participation des responsables de mission et des assistants d'audit est grande, moins la détérioration de la qualité de l'audit est marquée. Enfin, même si aucune augmentation des audits intermédiaires n'est observée en réaction au déséquilibre de la charge de travail au cours des périodes de pointe, la multiplication des audits intermédiaires peut atténuer l'incidence négative des audits de la période de pointe sur la qualité de l'audit. Les résultats de l’étude intéresseront les auditeurs et les autorités de réglementation, qui se sont dits préoccupés par les répercussions néfastes du déséquilibre de la charge de travail sur la qualité de l'audit.

Suggested Citation

  • Jin Suk Heo & Soo Young Kwon & Hun‐Tong Tan, 2021. "Auditors' Responses to Workload Imbalance and the Impact on Audit Quality," Contemporary Accounting Research, John Wiley & Sons, vol. 38(1), pages 338-375, March.
    • Handle: RePEc:wly:coacre:v:38:y:2021:i:1:p:338-375
    DOI: 10.1111/1911-3846.12612
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    5. Hui‐Yu Hsiao & Wu‐Po Liu & Szu‐Jung Wu, 2025. "Does increased monitoring enhance the credibility of financial reports? Evidence of auditing semi‐annual financial statements," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(1), pages 753-772, March.
    6. Patrick Velte, 2023. "The impact of external auditors on firms’ financial restatements: a review of archival studies and implications for future research," Management Review Quarterly, Springer, vol. 73(3), pages 959-985, September.
    7. An, Ran & Gao, Jiayan & Li, Shan & Wang, Yanyan & Yu, Lisheng, 2026. "Resource allocation to engagement teams: Evidence from asset-backed securitization assurance services," The British Accounting Review, Elsevier, vol. 58(1).

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