Study shows audit office staffing structure improves outcomes
Researchers from the University at Buffalo School of Management published new findings on audit quality in Contemporary Accounting Research.
Supervision levels matter for audits
The research analyzed more than 41,000 audits to determine how staffing leverage connects to quality. Study co-author Brandon Szerwo noted that partners and managers play a critical role in reviewing team work. This involvement helps ensure audit standards are followed during the process.
Staffing mix affects results
Audit firms typically rely on partners for oversight while staff perform day-to-day tasks. The study found that greater partner and manager participation leads to better audit results. Investors could use this data to evaluate firm performance more effectively.
Regulatory disclosure proposed
The Public Company Accounting Oversight Board has suggested requiring firms to disclose partner involvement in reviews. Such information would allow others to better assess the quality of audit work. The researchers believe these disclosures could improve transparency across the industry.
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