Evidence-based policymaking in auditing regulation: An historical analysis of academic research citation in PCAOB standard-setting practices

The success of the auditing profession hinges on the efficient and effective development of authoritative guidance that directs practice. Given the opportunity to assist, academicians can provide an understanding of the costs, benefits, and unintended consequences of potential regulatory decisions. Currently, few studies exist in the extant literature that explore the relationship between the development of auditing standards and the contribution of academic research. To investigate the scope of academic literature consideration in the development of public company auditing regulation, we examine whether and to what extent academic citations are referenced throughout the PCAOB's rulemaking documents. We find evidence that the PCAOB currently appears to incorporate the use of an evidence-based policymaking approach in its standard-setting practices, progressively evolving since its incipience. The findings of this study may lead to a calling for more robust academic discussion in future PCAOB public policy decisions, which in turn may benefit the auditing profession. (C) 2019 Elsevier Inc. All rights reserved.