Teamwork within professional audit firms in Malta : an analysis

Abstract

Purpose: This study seeks to identify the key characteristics of an audit engagement team. It will analyse whether the pillars of an effective team are being achieved in the conduct of a statutory audit engagement. Furthermore, this study also seeks to provide auditors with a better understanding of the impact and implications these pillars will have on team performance should they fail to be achieved. It will also attempt to identify barriers faced by audit firms when attempting to achieve these pillars. Finally, this study aims to provide suggestions on how to potentially improve teamwork within statutory audit engagements. Design: This study is conducted within the Big Four and Mid-Tier Audit Firms. Twelve semi-structured interviews were conducted with audit team leaders responsible for the staffing, managing, and reviewing of the audit engagement team. Additionally, an online questionnaire was circulated amongst audit team members. Findings: This study found that besides technical knowledge and expertise, members’ personalities and cultural backgrounds are also being taken into consideration when selecting resources for an engagement team. Interestingly, the study found that team leaders are aware of the importance of each pillar of effective teamwork. On the other hand, striking a balance between task-oriented and relationship-building roles is amongst the major barriers encountered in teamwork. Finally, the major improvements suggested revolve around effective communication and higher involvement of all team members throughout the audit engagement. Conclusion: Although the majority of the pillars of effective teams are achieved throughout the statutory audit engagement, the communication and leadership pillars are still not always achieved. Moreover, time pressure, insufficient resources, and workload are the major constrains impacting team performance which eventually leads to ineffective teamwork. Value: It is expected that this study provides useful insight on how to improve teamwork within statutory audit engagements by analysing which pillars are being achieved and the factors causing ineffective teamwork.