Unlocking auditors’ perceived external employability: exploring antecedents and behavioral consequences

Abstract

Purpose

In a rapidly changing career landscape where lifelong job security is no longer guaranteed, this study investigates how audit firms play an important role in shaping their employees’ career perceptions and the subsequent effects on auditor behavior. Specifically, it explores the link between audit firms’ career development initiatives and auditors’ perceptions of external employability – an important determinant of auditor behavior. Using the framework of social exchange theory, the study investigates how perceived external employability affects both relational and operational behaviors of auditors.

Design/methodology/approach

The study employs structural equation modeling on survey data from 359 auditors.

Findings

The results indicate that when audit firms actively support career development, it positively contributes to auditors’ perceived external employability. A higher perceived external employability, in turn, leads to positive behavioral outcomes among auditors, including stronger relational behaviors (such as professional commitment) and operational behaviors (including heightened professional skepticism and reduced behaviors that could compromise audit quality).

Originality/value

This study uncovers a paradox where perceived external employability, typically viewed as a risk, emerges as a potent driver of desirable auditor behavior. In today’s dynamic career landscape, emphasizing individual-centered and flexible careers, these results highlight the benefits of perceived external employability. Rather than undermining audit services, increased perceived external employability driven by firm investments in auditors’ careers acts as a catalyst for desirable auditor behavior. Organizational support in terms of career development practices creates an environment where auditors are more committed, professionally skeptical and uphold the quality of audit services.

Citation

Pruijssers, J.L. (2024), "Unlocking auditors’ perceived external employability: exploring antecedents and behavioral consequences", Journal of Accounting Literature, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAL-09-2022-0102