Implications of the COVID-19 pandemic: Understanding disrupted work practices among early and mid-career audit professionals

ABSTRACTWe investigate the preferences of public sector internal auditors for changes in their work practices. Informed by the literature, we posit that feelings of trust in the workplace and/or frustrations arising from perceived organizational ‘isolation’—a dimension of work alienation—motivate support and acceptance of change. We also argue that professional bodies directly and indirectly influence these relationships. These conjectures are tested using structural equation modelling and a survey of Canadian public sector internal auditors. The findings provide valuable insights into the process of adaptation and transformation in public sector settings across countries, jurisdictions, and accountability functions.

Quality Threatening Behaviours (QTBs) in auditing are associated with reduced audit quality and are under the focus of researchers and practitioners for the last two decades following the major corporate failures around the globe. QTBs are a constant threat for audit profession and lawmakers, regulatory bodies, practitioners and researchers are striving to reduce auditors’ engagement in these undesirable behaviours. Existing literature advocates that emotional intelligence (EI) meaningfully affects workplace behaviours. Wong and Law (2002) affirm that emotional intelligence is linked to job performance. Emotionally intelligent individuals respond to negative issues related to work in a better way (Greenidge, Devonish, & Alleyne, 2014). On the other hand, individuals who score low on emotional intelligence face problems in regulating emotions instigated by negative work practices reacting in a manner that can be detrimental for the organization and its members (Quebbeman and Rozell, 2002). Emotional intelligence is equally important for individuals in the accounting profession (Daff, de Lange, & Jackling, 2012). Akers and Porter (2003) proclaim that “EI skills are critical for the success of the accounting profession” (p. 65). Auditing is a frantic occupation that causes pressure on auditors (Fisher, 2001) that fetch damaging outcomes. Negative behaviours of auditors are caused by different pressures and lessen the quality of audit, emotional intelligence ability can help auditors in avoiding indulgence in these behaviours (Yang, Brink, & Wier, 2018). Grounding on the role of emotional intelligence at work across different contexts and its ability to negatively affect harmful workplace behaviours, it can be inferred that emotional intelligence can reduce auditors engagement in quality threatening audit behaviours.