GRADUATE RESEARCH DISSERTATIONS
CHAIR: DANA HERMANSON, PH.D. | CO-CHAIR: HONG QU, PH.D. | SECOND: LUCY ACKERT, PH.D. | READER: VINEETA SHARMA, PH.D.
BUSINESS IMPACT
SCHOLARLY ABSTRACT
This study examines the effects of communication mode richness (video versus audio) and risk priming (present versus absent) on auditors’ skeptical judgment and action following client inquiries. Auditors make inquiries with clients, and auditor assessments of risk drive audit test - ing decisions. As audit work increasingly shifts to remote settings, technological advances have expanded the range of communication modes available to auditors. This study investigates how risk priming interacts with communica - tion mode richness on auditor skeptical judgment and ac - tion. Using a 2x2 between-subjects design (video or audio; risk prime or not), undergraduate and graduate accounting students served as proxies for junior-level auditors. Par - ticipants conducted an audit inquiry regarding a potential overvaluation of inventory to simulate a real-world audit scenario. While the ANOVA models are not significant, the results revealed a significant interaction between communication mode and risk priming on the perceived plausibility of client responses and a marginally significant interaction between communication mode and risk prim - ing on the perceived truthfulness of the client responses. Risk priming had no significant effect on participants in the video condition, and in the audio condition, there was weak evidence that the client was perceived more favor - ably with risk priming. Additionally, auditors in the video condition performed more audit work (by purchasing ad - ditional information) compared to those in the audio con - dition, indicating that richer communication modes can prompt auditors to seek more evidence.
Video (richer) communication led auditors to perform more additional audit work than audio. Audit firms should be intentional about when to use video vs audio in remote inquiries. For high - er‑risk areas (e.g., revenue, estimates, inventory), video may prompt more evidence‑seeking and therefore higher audit quality—though with higher time/budget implications. Risk priming interacts with communication mode and changes how plausible/truthful client responses appear. Embedding brief, structured risk‑priming steps (e.g., checklist reflection on possible misstatements) before client calls can help junior staff engage more analytically, especially where communication modes may bias them to - ward over‑trust or distraction. Remote audit communication design can materially affect skeptical judgment, even before considering technical audit procedures. Audit methodology teams should treat “commu - nication mode + mental priming” as part of the audit program design—not just logistics. Training and templates for virtual inquiries can standardize good prac - tice and reduce inconsistent skepticism across teams.
THE EFFECTS OF COMMUNICATION MODE RICHNESS AND RISK PRIMING ON AUDITORS’ SKEPTICAL JUDGMENT AND ACTION
KATIE HARRIS, PH.D.
Keywords: audit inquiry, communication mode, risk priming, skeptical judgment and action
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