Audit of Performance Appraisal Process

Audit of Performance Appraisal Process

Audit reviewers routinely assess subordinates' or preparers' work quality as part of the audit review process. In this paper, we investigate whether reviewers' evaluations of preparers' work quality are influenced by three factors-their initial opinions on the audit task, the strength of the justification underlying the preparers' conclusions, and the importance reviewers ascribe to whether subordinates' work is aligned with the superiors' preferences. Understanding the determinants of reviewers' assessments of preparers' work quality is important because reviewers' workpaper assessment is a major component of the quality control mechanism in the audit review process. ...