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SYNOPSIS: Auditor burnout is an important issue in public accounting, as burnout has negative consequences for both the auditor and the audit firm. We examine how socialexchange relationships between auditors and their firm affect auditor burnout and turnover intention. Using a sample of 204 auditors at two accounting firms, we find that perceived fair treatment by the firm predicts perceived support from the firm, and perceived support predicts auditor commitment to the firm. We find that commitment is negatively related to auditor burnout and turnover intention and burnout is positively related to turnover intention. We also find that perceived firm fairness is directly associated with reduced levels of auditor burnout and turnover intention. The results underscore the important role that organizational fairness plays in engendering a socialexchange relationship between auditors and their firm, leading to reduced levels of burnout and turnover intention, benefitting both the auditor and the firm.
Keywords: burnout; emotional exhaustion; turnover; commitment; fairness.
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INTRODUCTION
Burnout (as captured in the emotional exhaustion component) is common among auditors. Audit firms are known for their busy season and the industry has been historically associated with high turnover rates (Fogarty and Uliss 2000). Auditing has always been a high-stress profession. Demanding deadlines, limited time for personal life, and passing the CPA exam are challenges auditors routinely deal with (PricewaterhouseCoopers 2004). In recent years, firms have conducted major layoffs in response to a slowing economy and off-shored portions of external audit work overseas (Whitehouse 2008; 2009; Daugherty and Dickins 2009). Auditors have seen smaller raises and higher billable hour targets. These issues and challenges can take their toll on auditors and result in feelings of emotional exhaustion. The purpose of this study is to examine the role that the auditor-audit firm relationship may play in reducing burnout and turnover intention.
Prior research finds burnout to be associated with an array of negative outcomes for both individuals and organizations including absenteeism, poor job performance, reduced citizenship behavior, and increased turnover intention (Saxton et al. 1991; Cropanzano et al. 2003). In the accounting literature, burnout has been found to predict increased turnover intention, poor job performance, and lower levels of job satisfaction (Jones et al. 2010). Given the severe consequences of...