（2008）Exploring the Extent and Determinants of Knowledge Sharing in Audit Engagements.pdfVIP

Exploring the Extent and Determinants of Knowledge Sharing in Audit Engagements a b* c Chee W. Chow , Joanna L. Ho , and Sandra C. Vera-Muñoz aSan Diego State University b University of California, Irvine c University of Notre Dame Abstract Audit firms are faced with increasing demands for audit efficiency and effectiveness. Increasing knowledge sharing in audit engagements can help them respond to this challenge, and this study seeks to advance understanding of the extent and determinants of such sharing. Data collected from auditors of two Big Four audit firms suggest that both firms have high, but far from complete, levels of knowledge sharing. The factors identified as affecting such sharing range from characteristics of the client to attributes of the audit firm, audit team and individual auditors. A framework is proposed for organizing these factors and relationships. JEL Classification: M42 Keywords: Audit efficiency, audit effectiveness, knowledge sharing 1. Introduction and Overview Knowledge is increasingly being viewed as a key source of competitive advantage, economic growth, and corporate value, with many large global corporations having launched formal initiatives to promote knowledge sharing among employees (e.g. Dow Chemical, Hewlett-Packard, Shell, Xerox). This widespread attention to knowledge sharing is based on the belief that bringing together the full range of employees’ skills, knowledge, and experience increases the effectiveness with which firms can solve problems, avoid repeating mistakes and spread the adoption of best practices (Collins and Smith, 2006; Robinson et al., 2006; Weick, 2005). Just as knowledge sharing among employee