While some research suggests that explicit incentives to meet time budgets have recently
been reduced at audit firms, there is also evidence indicating that audit seniors and staff
still feel at least implicit pressure to meet budgets. We examine the possibility that both
of these findings tell a part of the story. Specifically, we explore whether, and under what
conditions, seniors and staff are implicitly encouraged to underreport time through future
engagement staffing decisions and the performance evaluation process.