Field Evidence about Auditors' Experiences in Consulting with Forensic Specialists

Abstract

ABSTRACT We propose and test a model that links the antecedents of consultation between auditors and forensic specialists to the work performed and the overall effectiveness of the consultation. The antecedents are auditee, auditor, and forensic specialist related, while the work is related to risk assessment, risk responsiveness, and teamwork. A path model, based on a field survey of 57 experienced auditors, shows that forensic specialists' understanding of the client's business and engagement objectives is positively associated with risk assessments and effective teamwork, which, in turn, are positively associated with overall consultation effectiveness. Further, involving forensic specialists early in the engagement is associated with improved teamwork and risk responsiveness. Qualitative responses identify other factors, such as investment in joint extra-collaboration enterprises, which may moderate the association among the antecedents, work, and outcomes. A second survey clarifies the circumstances under which consultation enhances risk assessments, provides examples of unique procedures performed by the forensic specialists, and clarifies the effect of the consultation on cost and delays. Taken together, our findings provide important insights and implications for firm policy, regulatory standards, and future research. Data Availability: Contact the authors for data availability.