Supervisor Power and Auditor Experience Influencing Auditor's Response

Abstract

This study investigates the effect of types of supervisor power and auditor experience on auditor's response. By using mail survey method, 280 auditors are selected as the respondents. Partial Least Squares (PLS) are used to analyze data. The findings of this study show that: (a) referent power positively influences impression management and feedback seeking; (b) expert power has a positive effect on performance improvement and feedback seeking; (c) legitimate power affects performance improvement, impression management and feedback seeking. While, coercive power has a negative impact on performance improvement. The result also finds that auditor experience is associated with performance improvement, impression management and feedback seeking. The findings of this study are consistent with control theory suggesting that the response of auditors is influenced by experience and supervisor power. The implications of this study imply that developing a type of supervisor (referent, expert, and legitimate) can motivate auditor to perform better performance. It also indicates that developing skills in a variety of assignments may improve audit quality.

Keywords: supervisor power, auditor experience, auditor's response