Accountability Effects on Auditors' Performance: The Influence of Knowledge, Problem-Solving Ability, and Task Complexity

In this study, we examine three factors that may moderate the relation between accountability (to a superior) and auditor performance: knowledge, problem-solving ability, and task complexity. These factors correspond to previously identified determinants of performance (e.g., Einhorn and Hogarth [1981] and Libby and Luft [1993]). Specifically, we predict that accountability works best when the requisite knowledge and abilities are matched with the characteristics of the task. Understanding the determinants of the accountability-performance relation is important because accountability can be used by CPA firms to influence auditors' performance (through the review and performance evaluation processes). Because a particular auditor's knowledge and problem-solving ability are considered fixed at a given point in time, one of the few remaining ways a CPA firm can influence auditor performance is to vary accountability demands.