Self-efficacy, remote audit proficiency, effort, and performance in the COVID-19 crisis: an auditor's perspective

PurposeThe COVID-19 pandemic has introduced new challenges for auditors to provide high-quality audits. These challenges pose interesting questions about the ability of auditors to obtain audit evidence and ensure appropriate conclusions. In response to these questions, this paper aims to examine how self-efficacy affects the auditors' effort and performance during COVID-19 and how remote audit proficiency helps them respond to these challenges, as reflected in more effort and high-quality performance. Design/methodology/approachTo test the hypotheses, this study used a quantitative approach in which 193 Saudi auditors were surveyed and partial least squares structural equation modeling was used to analyze the data. FindingsThe authors demonstrated that self-efficacy is positively associated with the perceived audit effort and performance during the COVID-19 crisis. The results also showed that remote audit proficiency plays a significant role during COVID-19 as it can help auditors exert more effort and perform audit activities effectively. This study also found that remote audit mediates the association between self-efficacy and both effort and performance during COVID-19. These results are also asserted under several robust analyses. Originality/valueTo the best of the authors' knowledge, these findings provide the first evidence on the effect of COVID-19 on auditors and have implications for both theory and practice.

Audit fees under the COVID-19 pandemic: evidence from Oman

Purpose: The worldwide spread of the coronavirus disease 2019 (COVID-19) has significant effects on financial markets and companies, causing an unprecedented level of uncertainty in reporting and auditing companies' financial statements. This study explores whether and how COVID-19 affects audit fees. Design/methodology/approach: Using a sample of 268 firm-year observations from the Omani capital market between 2017 and 2020, the ordinary least squares (OLS) regression with a robust standard error is applied to answer the research question of this study. Findings: The authors find that the pandemic has a significant and positive association with audit fees and abnormal audit fees. This finding suggests that the threat of risk, complexity and legal liability circumstances resulting from the pandemic can be compensated by charging higher audit fees. In addition, the authors provide evidence that Big4 audit firms are those most responding to COVID-19 by charging higher audit fees. Finally, the authors conclude that large companies are less sensitive to the pandemic. Practical implications: Users of financial reports and audit firms should anticipate changes in the audit efforts resulting in increased audit fees during COVID-19. Thus, this paper may guide practitioners and businesses in determining the audit fees and associated costs of any potential pandemic. Originality/value: The study results are among the earliest empirical insights into the effect of COVID-19 on audit fees in Oman. © 2022, Emerald Publishing Limited.