TY - JOUR

T1 - Quality management in a top tier accounting firm: Towards a socio-cognitive model

AU - Seckler, Christoph

AU - Reihlen, Markus

PY - 2013

Y1 - 2013

N2 - Audit quality has been subject to extensive research in the accounting field. Particularly macro level influences (e.g., legal environment, professional self-regulation) and meso level influences (e.g., accounting firm size, non-audit services, industry specialization) have been examined. However, few scholars have explored the production of audit quality on a micro level. Drawing on insights from error management literature and an embedded case study design, we explore error management in accounting firms. Based on 18 months of participant observations, 41 interviews, and archival materials in a Big 4 accounting firm we suggest a socio-cognitive model that explains error management as a self-reinforcing system, in which structures and systems, organizational practices, and individual skills interact and jointly constitute and reconstitute each other in the production of audit quality. In particular, our study shows how organizational error prevention practices create resilient individuals which are the key for resilient error management practices in audit teams. Furthermore, resilient error management practices are reflected in the organizational structures and systems supporting error management in accounting firms. We conclude that studying error management in general and error management in accounting firms in particular requires a socio-cognitive approach that explores the close interaction of structure and systems, organizational practices, and individual skills.

AB - Audit quality has been subject to extensive research in the accounting field. Particularly macro level influences (e.g., legal environment, professional self-regulation) and meso level influences (e.g., accounting firm size, non-audit services, industry specialization) have been examined. However, few scholars have explored the production of audit quality on a micro level. Drawing on insights from error management literature and an embedded case study design, we explore error management in accounting firms. Based on 18 months of participant observations, 41 interviews, and archival materials in a Big 4 accounting firm we suggest a socio-cognitive model that explains error management as a self-reinforcing system, in which structures and systems, organizational practices, and individual skills interact and jointly constitute and reconstitute each other in the production of audit quality. In particular, our study shows how organizational error prevention practices create resilient individuals which are the key for resilient error management practices in audit teams. Furthermore, resilient error management practices are reflected in the organizational structures and systems supporting error management in accounting firms. We conclude that studying error management in general and error management in accounting firms in particular requires a socio-cognitive approach that explores the close interaction of structure and systems, organizational practices, and individual skills.

KW - Management studies

U2 - 10.5465/AMBPP.2013.11722abstract

DO - 10.5465/AMBPP.2013.11722abstract

M3 - Journal articles

VL - 2013

JO - Academy of Management Proceedings

JF - Academy of Management Proceedings

SN - 0065-0668

IS - 1

M1 - 11722

ER -