Effects of Supervisor Power on Preparers' Responses to Audit Review: A Field Study

This study investigates the role of audit review as feedback to workpaper preparers. Specifically, we examine whether review affects preparers' attempts to improve their performance, manage their reviewers' impressions of their work, and seek additional feedback from their reviewers. We also examine the effects of preparers' perceptions of their reviewers' power. Power has previously been shown to be a critical construct affecting feedback. Our findings suggest that perceptions of reviewer power affect preparers' responses to review. Specifically, referent power appears to have the most positive effect on preparer's responses, while perceptions of coercive power have detrimental effects.