Auditors Gone Wild Harvard Case Solution & Analysis

Auditors Gone Wild Case Study Help

PCAOB Set Standards

The audit staff followed all the set procedures as prescribed by the PCAOB body. PCAOB was the regulatory governing body, which set rules, guiding policies, ethical standards, quality and regulations for the auditingstaff and gauged insight about the proficiency of the auditors’ performances. It could revoke the firms’ CPA registration, because of the violation of set standards(Carmichael, 2014). In addition to this, the section 404 allowed the auditors to form an open opinion about the client’s financial statements and the internal control procedures.

Audit Process Deficiencies

The organizations wanted fastest and quick filling of audit reports at a lower cost as compared to the previous years, with aninclusion of experts’ advice, sageand attention. Because of this competitive challenge; the professional auditors were forced to work overtime, which increased traveling, overloaded their schedule, led to busy seasons, minimum personal time and an increased tension, which further resulted in high level of stress.(K Lee, NJ Allen, 2016). Auditors suffered more headaches as compared to other professionals, and the suicide rate was higher among the male accountants as compared to other population. It was reported that in the UK; the auditors’ suicide rate was 10%.


It has been reported that the workplace deviance occurred because of stressed out work routines and over-burdened work schedules, with aninclusionof the facts that the over-burdened 34% over-burdened employees represented resentment towards coworkers and 39% workers represented anger toward their employers.(AE Colbert, MK Mount, JK Harter, LA Witt, 2004). Thus, it is recommended that the auditor workplace deviance behavior is fair enough, because they are giving more time and extra efforts for the work to be done in the fastest way possible, in such ahighly competitive environment. Moreover, the PCAOB and other regulatory bodies should formulate such policies that could safeguard the interest of both parties, including: audit staff and investors. Despite of activities, such as: misusing the working hours in office gyms or not taking the work responsibilities seriously, should be avoided, which tends to over-burden other collogues.


It is concluded that the case examines the relationship between the workplace deviance and the firm’s performance, and its impact over the profitability. The researcher made an extensive research over four accounting firms and formulated some managerial strategies in order to minimize the impact of workplace deviance over firm’s performance. Thus, it is recommended that the auditor workplace deviance behavior is fair enough, and the PCAOB and other regulatory bodies should formulate effective policies that must be in the interest of both the parties................................


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