The Influence of Client Corporate Social Responsibility Performance Information on Auditor Judgments

Our experiment, with 106 practicing auditors, tests whether audit judgments are influenced by client CSR performance, individual auditors' views of CSR, and auditors' perceptions of client risk induced by CSR performance. Results indicate auditor judgments are less (more) conservative for...

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Bibliographic Details
Published in:Accounting and the public interest 2020, Vol.20 (1), p.1-27
Main Authors: Hickman, L. Emily, Cote, Jane M., Sanders, Debra, Weber, T. J.
Format: Article
Language:English
Subjects:
Auditing
Auditors
Performance evaluation
Social responsibility
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Summary:Our experiment, with 106 practicing auditors, tests whether audit judgments are influenced by client CSR performance, individual auditors' views of CSR, and auditors' perceptions of client risk induced by CSR performance. Results indicate auditor judgments are less (more) conservative for clients with positive (negative) environmental performance. We find that client risk assessments mediate the link between environmental performance and account-level judgments. In contrast, results indicate that socially-oriented performance has no overall significant influence on audit judgments in our experiment. Overall, our results indicate that different dimensions of CSR and the salience of the CSR issue can have differential effects on audit judgments. Data Availability: Data available upon request.
ISSN:1530-9320
1530-9320
DOI:10.2308/API-19-006