The article Cultivating Engaged Audit Teams: The Effect of the Lead Audit Partner’s Leadership Behaviors by Gabriel Dickey, Joseph Ugrin, and J. Lee Whittington explores the critical role of lead audit partners in fostering team engagement, a key factor in improving auditor well-being and audit quality. Drawing on data from 82 audit teams across three U.S. accounting firms, the study highlights how specific leadership behaviors directly influence the passion, commitment, and effectiveness of audit teams in high-pressure environments.
Team engagement, characterized by vigor, dedication, and deep absorption in work, has been widely recognized for its positive effects on performance and resilience. However, achieving such engagement in audit settings, which often involve tight deadlines and complex challenges, requires deliberate effort. The research identifies the leadership behaviors of the lead audit partner as a pivotal determinant of team engagement, emphasizing their ability to set the „tone at the top“ and shape team dynamics effectively.
The study investigates seven dimensions of leadership behavior based on the full-range leadership model, which encompasses transformational and contingent reward approaches. The findings reveal that three specific behaviors are most influential in enhancing engagement. First, contingent reward behavior involves clearly defining performance expectations, providing ongoing feedback, and rewarding team members for meeting or exceeding goals. This builds trust and ensures that team members feel valued and understand their roles clearly. Second, modeling leadership behavior reflects the importance of leading by example, demonstrating ethical conduct, emotional intelligence, and accountability. Leaders who act consistently with their expectations for others earn respect and inspire similar behaviors among their teams. Lastly, setting high performance expectations challenges team members to strive for excellence in various aspects of their work, from task management to audit quality, thereby creating a culture of achievement supported by constructive feedback and reinforcement.
While the remaining dimensions of leadership, such as providing intellectual stimulation or fostering group goals, were not found to significantly impact team engagement in this context, the authors suggest that these behaviors may play a more prominent role in specific scenarios, such as complex audits or newly formed teams. The study underscores the importance of leadership development programs in accounting firms, recommending a focus on the three key behaviors identified to cultivate engaged, high-performing audit teams. For more detailed insights, the study is published in Accounting Horizons here.