Auditor health and audit outcomes before COVID-19

Landi Morris, Rani Hoitash

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

This study examines whether influenza-like illnesses (ILIs), a potential threat to the conduct of public company audits, are associated with audit outcomes. Because the peak months of flu season overlap with audit busy season, audit offices most at risk of ILIs may be adversely affected. The demanding nature of audit busy season and the culture of audit firms may compel employees to go to work sick, a phenomenon known as presenteeism. When auditors go to work with flu-like symptoms, cognitive functioning is impaired, resulting in brain fog. This impairment may influence auditors’ ability to exercise judgment and professional skepticism, leading to adverse outcomes. Using data collected from the Centers for Disease Control and Prevention (CDC) we find that the filing of audit reports is delayed and audit quality suffers in audit offices most at risk of influenza-like-illnesses. The observed effects of health impairments on company outputs have broad implications for both the audit profession and workplaces as a whole.

Original languageEnglish (US)
Article number107074
JournalJournal of Accounting and Public Policy
Volume42
Issue number3
DOIs
StatePublished - May 1 2023

Keywords

  • Audit quality
  • Audit report lag
  • COVID-19
  • Discretionary accruals
  • Health
  • Human capital
  • Influenza-like illness
  • Material weaknesses
  • Non-timely filings

ASJC Scopus subject areas

  • Accounting
  • Sociology and Political Science

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