The effect of skilled versus nonskilled community service on auditor behavior

Purpose Prior research shows that nonskilled community service may unintentionally impair auditor objectivity. We examine the effects of skills-based versus nonskilled community service on auditor judgment and decision making. Design/methodology/approach We used an online survey to conduct an experiment with ninety-four practicing Big 4 auditors. The sample was primarily composed of associates (53.2%) and senior associates (31.9%), with an average age of 25.5 years old (SD = 2.5) and an average years of work experience = 2.7 (SD = 1.7). Findings Relative to a control group, auditors who committed to a nonskilled (skilled) community service project became more (less) willing to acquiesce to a client’s preferred accounting treatment. Practical implications These results are useful for firms designing employee community service programs and could also be of interest to regulators and policymakers. Originality/value Our research suggests that skills-based community service may not only mitigate potential unintended consequences of employee community service but could even improve auditor decision-making and audit quality.