Audit Team Paradox‐in‐Virtuality and Audit Quality Threatening Behaviour

ABSTRACT

This study investigates the association between audit team virtuality and audit quality‐threatening behaviour (AQTB). Although virtuality theory suggests that high virtuality can hinder team interactions, virtuality‐in‐paradox theory shows such tools can simultaneously create isolation and efficiency, reduce interpersonal bias and empower timely task completion. This suggests that structural and perceived aspects of virtuality have a more complex influence on team behaviour. Paradox‐in‐virtuality theory is applied to explain how virtuality affects audit team behaviour. Data were collected from 335 auditors across 185 audit team engagements at a Big 4 audit firm using a questionnaire survey. Ordered logistic regression analysis and robustness tests are applied. Results show that audit team virtuality is associated with AQTB. Teams that rely more heavily on communication technologies report higher levels of AQTB, whereas teams experiencing greater synchronicity and higher information quality report lower levels of AQTB. However, the interaction analyses reveal important nuances: When synchronicity occurs together with high technology use, AQTB increases, but when information quality is high, whether combined with technology use or with synchronicity, AQTB becomes less frequent. The consequences are analysed, and future research prospects are discussed. This research contributes to audit quality and audit team literature by identifying determinants of AQTB at the team level. Insights into audit team behaviour are valuable for practitioners adapting to new communication technologies. Contributions are made to team virtuality research and behavioural outcomes by testing its three dimensions in professional audit practice.