Subordinate Participation in Audit Budgeting Decisions: A Comparison of Decisions Influenced by Organizational Factors to Decisions Conforming with the Vroom‐Jago Model

William R. Pasewark, Jerry R. Strawser

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

This study examines the role of subordinate participation in the effectiveness of audit hours budget decisions in accounting firms. The study compares decisions influenced by organizational factors (such as organizational policies or the preferences of the superior) to decisions that conform to the Vroom‐Jago (VJ) model. Our results indicate that actual level of participation used in budget decisions appears to be based primarily on perceived preferences of superiors and participation styles available under the circumstancesof the individual audit. However, results also indicate that decisions consistent with the Vroom‐Jago model are characterized by higher decision quality and increased subordinatedevelopment. Since managers are apparently reluctant to use decision styles that conflictwith organizational factors, accounting firms may wish to gather information regarding the attributes of the decision context and use the VJ model to establish their available decision styles and determine the preferences of superiors. Doing so has the advantage of considering decision‐specific attributes while enhancing the probability of manager compliance with a desired decision style.

Original languageEnglish
Pages (from-to)281-299
Number of pages19
JournalDecision Sciences
Volume25
Issue number2
DOIs
StatePublished - Mar 1994

Keywords

  • Auditing
  • Budgeting & Control Systems
  • Decision Processes

Fingerprint Dive into the research topics of 'Subordinate Participation in Audit Budgeting Decisions: A Comparison of Decisions Influenced by Organizational Factors to Decisions Conforming with the Vroom‐Jago Model'. Together they form a unique fingerprint.

Cite this