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Auditor workload compression and busy season portfolio changes – U.S. evidence

Author

Listed:
  • Dennis M. López

    (UTSA)

  • Marshall K. Pitman

Abstract

The purpose of this study is to investigate the impact of auditor workload compression on the likelihood of changes to the busy season client portfolio of an audit firm. Using the local offices of the Big-N firms as the unit of analysis, we find evidence of a positive association between workload compression and the likelihood of changes to the busy season client portfolio. We also find evidence of a positive association between auditor-client misalignment and the likelihood of such changes. The results for our auditor risk proxies are consistent with prior studies, in support that auditors with greater levels of risk in their portfolios are more likely to engage in busy season client turnover. By using alternative research methods and considering previously overlooked variables, this study sheds new light on the factors influencing the portfolio management decisions of auditors. Length: 27 pages

Suggested Citation

  • Dennis M. López & Marshall K. Pitman, 2013. "Auditor workload compression and busy season portfolio changes – U.S. evidence," Working Papers 0216acc, College of Business, University of Texas at San Antonio.
    • Handle: RePEc:tsa:wpaper:0216acc
    as

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    File URL: http://interim.business.utsa.edu/wps/acc/0040ACC-502-2013.pdf
    File Function: Full text Classification- M42, M48, M49
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    References listed on IDEAS

    as
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