Assessing the Relationship Between Auditor Workload and Detection of Financial Irregularities in Practice

Posted: May 25, 2019

• Noa Fitzgerald
• Layla Chavez
• Owen Miller

Abstract

The detection of financial irregularities represents a cornerstone of effective auditing practice, with significant implications for financial market integrity and stakeholder confidence. While substantial research has examined various factors influencing audit quality, the specific relationship between auditor workload and the detection of financial irregularities remains inadequately understood. Traditional approaches have often conceptualized workload as a unidimensional construct, typically measured through hours worked or client portfolio size, overlooking the complex interplay between quantitative demands and cognitive processing capabilities. This study addresses this gap by developing and validating a comprehensive workload assessment framework that integrates both objective metrics and subjective cognitive factors. Financial irregularities encompass a broad spectrum of activities ranging from unintentional errors to deliberate fraud, each requiring different cognitive processes for detection.