Promoting Proactive Auditing Behaviors

We introduce the construct of auditor proactivity to the accounting literature. Since auditors work in complex, dynamic environments where complete directives are often unavailable, auditors need to be proactive to achieve quality audit outcomes. However, proactivity is often lacking in practice. Thus, we position auditor proactivity as a valuable but scarce determinant of audit quality. Drawing on theory from management, accounting, and psychology, we test hypotheses about how environmental and dispositional factors interact to encourage a range of distinct proactive auditing behaviors that involve considering the out-of-task implications of audit evidence, coordinating with clients to acquire evidence, and coaching junior auditors. Using an experiment, we predict and find an ordinal interaction: auditors are more proactive when they have both higher autonomy and higher tacit knowledge, and equally less proactive when they lack either or both of these factors. Our theory and findings inform academics, regulators, and practitioners about how work environments and policies could be modified to promote proactive auditing behaviors.