The effects of a client's social media disclosure and audience engagement on auditor judgment
Document Type
Article
Publication Date
12-1-2024
Abstract
The rapid rise of social media enables companies to disclose information to the public instantly. Thus, auditors may initially receive client information via a client's social media account instead of through private, client-to-auditor communication. Drawing on Social Penetration Theory, we conduct an experiment to investigate how a client's initial disclosure via social media (versus private disclosure) and audience engagement of the client's posts (e.g., number of “likes,” “replies,” and “reposts”) affects auditors' perception of the auditor-client relationship and their evaluation of the client-provided information. We find that when auditors initially receive client information via social media with high audience engagement, they are less willing to accept the client's preference than when the same information is disclosed privately or publicly with minimal audience engagement. Our findings are consistent with auditors perceiving client disclosure via social media with high audience engagement as a significant violation of their communication expectations such that their relational closeness with the client weakens and causes them to respond critically. We contribute to the literature on the use of social media for corporate disclosure, which has implications for the auditor-client relationship and audit quality.
Publication Source (Journal or Book title)
Accounting Organizations and Society
Recommended Citation
Aghazadeh, S., Brown, J., Guichard Latiolais, L., & Phillips, T. (2024). The effects of a client's social media disclosure and audience engagement on auditor judgment. Accounting Organizations and Society, 113 https://doi.org/10.1016/j.aos.2024.101564