Journal article
When the world isn't always flat: The impact of psychological distance on auditors' reliance on specialists
MM Weisner, SG Sutton
International Journal of Accounting Information Systems | ELSEVIER | Published : 2015
Abstract
This study addresses recent calls for research on the conditions influencing auditor decisions related to PCAOB-encouraged reliance on third-party experts. To this end, the present study explores the effect of psychological distance on external auditors' reliance when induced through physical distance in a telework relationship between an auditee and a specialist. The reliance decision focuses on the auditee's contracting with a computer audit specialist who works remotely through a telework arrangement. The psychological distance associated with this telework arrangement is examined both in the context of variance in the physical distance of the computer audit specialist and the interactive..
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Funding Acknowledgements
We thank Irina Malaescu for her invaluable support during the data collection process. The authors appreciate helpful feedback received during workshops at Monash University, the University of Central Florida and the University of South Florida, and presentations at the First Florida Accounting Behavioral Research Symposium, 2013 SIG-ASYS Annual Workshop, and 2014 AAA Audit Section Mid-Year Meeting. We particularly thank Vicky Amold, Rina Limor, Irina Malaescu, Uday Murthy, Donna Bobek Schmitt, Greg Trompeter, Donald Wengler, and Patrick Wheeler. We also thank the Kenneth G. Dixon School of Accounting for financial support of this research project