How Trial Preparation Factors Influence Audit Litigation Outcomes: Insights from Audit Litigators
通过访谈39位审计诉讼律师，识别出庭审地点、陪审团构成和案件论点等影响审计诉讼结果的因素，并基于详尽可能性模型构建框架，解释这些因素如何通过改变陪审员的动机或能力来影响诉讼结果。
ABSTRACT Research indicates that auditors have an impoverished understanding of trial preparation factors that, independent of audit quality, can significantly elevate audit litigation risk. As the scholarly literature sheds little insight about the nature and implications of these factors, we identify what factors audit litigators consider in trial preparation, how they expect these factors to affect litigation outcomes, and how they attempt to leverage these factors. To do so, we interview 39 audit litigators, who identify factors germane to trial venues, jury pools, and case arguments. Guided by the elaboration likelihood model, we construct a framework that predicts these factors influence litigation outcomes by changing jurors’ motivation and/or capability to elaborate. Importantly, we find that litigators who defend (sue) auditors strategically maneuver these factors to increase (decrease) the likelihood of higher juror elaboration, because higher elaboration is favorable to auditors. We discuss implications of our results for practice and research. JEL Classifications: K22; K40; K41; M4; M41; M42.