Auditors’ Responses to Workload Imbalance and the Impact on Audit Quality
Jin Suk Heo
Hongik University College of Business Management
Hongik University
2639 Sejong-ro Jochiwon-eup, Sejong-si, Korea 30016
Email: jinsukheo@hongik.ac.kr
Soo Young Kwon
Korea University Business School
Korea University
145 Anam-ro Sungbuk-gu, Seoul, Korea 02841
Email: sykwon@korea.ac.kr
Hun-Tong Tan†
Nanyang Business School
Nanyang Technological University
50 Nanyang Ave., Singapore 639798
Email: ahttan@ntu.edu.sg
Phone: (65) 67904819
CAR

Abstract
Using detailed data for fieldwork hours and audit hours by rank from audit engagements in Korea, we examine whether audits conducted under workload imbalance, proxied by busy-season audits, impair audit quality, and how auditors adjust staff assignments for busy-season audits. We generally find that busy-season audits are associated with lower audit quality, and that audit firms reduce the involvement of senior auditors during busy-season audits. In addition, the greater the involvement of senior auditors and junior auditors, the lesser the deterioration in audit quality. Finally, although there is no increase in interim audits in response to workload imbalance during busy seasons, increasing interim audits can mitigate the negative impact of busy-season audits on audit quality. Our results are relevant to auditors and regulators, who have expressed concerns about the adverse effects of workload imbalance on audit quality.