Is Working Remotely a Good Idea? A Study of Audit Quality During Quarantine

Authors

Tammy Tang, Florida International UniversityFollow

Document Type

Dissertation

Degree

Doctor of Philosophy (PhD)

Major/Program

Business Administration

First Advisor's Name

Maria Vulcheva

First Advisor's Committee Title

Committee Chair

Second Advisor's Name

Abhijit Barua

Second Advisor's Committee Title

Committee Member

Third Advisor's Name

Xiaochuan Huang

Third Advisor's Committee Title

Committee Member

Fourth Advisor's Name

Qiang Kang

Fourth Advisor's Committee Title

Committee Member

Keywords

accounting

Date of Defense

5-17-2023

Abstract

This study exploits the shutdown of non-essential businesses as a unique setting to address the effect of mandatory remote work on audit quality. Using three measures of audit quality, the combined evidence in this study suggests that audit quality improves with remote work. Firms audited remotely have lower discretionary accruals, are less likely to meet or beat analyst forecasts, and are more likely to get a going concern opinion. The results also suggest that audit firm technology and client technology are jointly significant in determining audit quality with remote work. This paper serves as the first archival study to examine the relationship between remote work and audit quality and impacts our understanding of the audit process literature. Altogether, the findings yield timely insights to address the ongoing tension between employees and employers regarding a flexible geographical working arrangement and work-life balance.

Identifier

FIDC011194

Recommended Citation

Tang, Tammy, "Is Working Remotely a Good Idea? A Study of Audit Quality During Quarantine" (2023). FIU Electronic Theses and Dissertations. 5372.
https://digitalcommons.fiu.edu/etd/5372