What is it about?
This study studies auditors' busy season through ego depletion theory from the psychology literature. Ego depletion theory indicates that self-control relies on a limited cognitive resource, and that using self-control on one task decreases your ability to exercise self-control on a subsequent task. "Busy season" in a financial statement audit refers to a period of time where auditors have heavy workloads and work extremely long hours. I expect, and find, that busy season leads auditors to start their day in a depleted state. Essentially, auditors begin their day within busy season with their ability to exercise self-control impaired, as it would be after working a full day.
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Why is it important?
This is important because ego depletion can potentially have a negative effect on professionals' judgment and decision-making quality. If auditors are beginning their day within busy season - the most important time within the audit - in a depleted state, then it potentially compromises their decision-making ability. Because auditors are tasked with protecting investors by ensuring that companies comply with Generally Accepted Accounting Principles and do not commit fraud, this can have significant implications for capital markets.
Perspectives
This was an extremely fun and difficult study to conduct, given the limited availability of auditors within busy season, their most busy and stressful time of the year. This is the second out of three papers that make up my dissertation. In my career as a professional auditor, I felt the effects of busy season but was unsure of the potential impact it could have on my work. By conducting this study, I hope to shed some light on how busy season can impact auditors' judgment and decision-making quality, which should be of interest to auditing firms, regulators (e.g., the PCAOB), investors, and academics alike.
Dr Patrick J Hurley
Northeastern University
Read the Original
This page is a summary of: Ego Depletion and Auditors' Busy Season, Behavioral Research in Accounting, September 2017, American Accounting Association,
DOI: 10.2308/bria-51757.
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