Discussant's response to "Auditors' judgments and decisions under time pressure: an illustration and agenda for research";

              Discussant's Response to "Auditors' Judgments/ Decisions Under Time Pressure: An Illustration and Agenda for Research"
Richard Kreutzfeldt
Arthur Andersen & Co.
This is an excellent paper, and I completely support the efforts by these authors to expand the research agenda regarding time pressure in auditing. My comments will offer insights from auditing practice on the nature of time pres-sures and auditors' responses to these pressures as well as how these matters might be addressed in a broader research agenda.
Time Constraints in Auditing
One of the critical issues that should be covered by a broader research agen-da is the nature of time pressure in auditing. Much of the prior research and many comments in this paper treat time pressure in auditing as an "on-off switch." Time pressure is present in some situations and not present in others. This premise is not consistent with actual practice. In my experience, time pres-sure is present in virtually all audits. The real issue is the intensity of the pres-sure, and particularly changes in the intensity. In practice, the degree of time pressure that is present in a particular audit differs according to factors such as client size, industry, and other client-specific factors. Some of this pressure may be self-imposed by the audit team itself and some is imposed by the client. In any event, some degree of time pressure is an ever-present factor in auditing.
The prior research on time pressure dealt with the differences in auditor responses when time pressure was present versus not present. A more realistic approach would be to analyze auditor responses when the degree of time pres-sure changes. Over time, auditors adapt to a certain amount of time pressure. A critical question is how they revise their approach when the degree of this pres-sure changes. With a more "field based" approach, researchers should be able to study the degree of pressure that is present in various situations, factors which change the degree of time pressure, and how auditors respond to these changes.
Time Pressures Are Increasing
The authors indicate that time pressures are increasing due to competition within the profession. I agree with this comment. However, there are other forces at work that are also serving to increase time pressure. For instance, vir-tually all companies today are under increasing pressure to reduce costs in all parts of their operation. In turn, they are placing pressures on various vendors to reduce their costs through efficiencies or other measures. Auditors are being asked to do their part in helping reduce costs.
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