From techniques to ideologies: An alternative perspective on the audit function

A significant body of accounting research has highlighted the socially constituted nature of accounting and the diversity of roles and functions that accounting performs. To date, however, there has been little attempt to apply this literature to a consideration of the nature of audit work and the processes of audit judgement. In contrast, much of the audit judgement research tends to adopt a unitary perspective, seeking to explore the comparative technical advantage of "expert≓ auditors or to develop rationalistic models of audit judgement. Such audit research sits rather uneasily with the growing concern about the potential erosion of standards of professional audit conduct and the ability of auditors to serve a "public watch-dog≓ function in the face of severe commercial pressures. This paper views auditing as a socially-constituted activity. Using a series of interviews with audit managers focusing on the planning of audit work, the paper illustrates the differing functions that audit activities can serve. As well as a techno-rational function designed to enhance audit quality, the activity of audit planning also serves both significant ideological and marketing functions (the former designed to legitimize the choice and extent of audit work, and the latter designed to maintain and if possible increase the fee income from the client). As such, the paper's findings serve to cast doubt on the ability of the auditing profession to deliver the audit service traditionally demanded by society. "Audit is a social phenomenon. It has no purpose or value except in its practical usefulness. It is wholly utilitarian. The function has evolved in response to a perceived need of individuals or groups in society who seek information or reassurance about the conduct or performance of others in which they have an acknowledged or legitimate interest≓ (Flint, 1988, p. 14). "Price Waterhouse is continually refining its audit approach, adding efficiencies and maximising the use of new and emerging technologies in order to meet clients' auditing and other professional service needs. Our approach has universal applicability and results in a tailored, effective audit of each entity's financial statements≓ (Walker & Pierce, 1988, p. 1). © 1990 Academic Press Limited.