A comparison of auditor and client initial negotiation positions and tactics

Bame-Aldred, Charles W.; Kida, Thomas

doi:10.1016/j.aos.2006.07.001

Cited by 107 publications

(45 citation statements)

References 16 publications

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“…Revelation of the identity of the consultants in the Danish case also appears to be conspicuous in its calculation to influence as in the Commission's use of KPMG's words to refute Police Union arguments attacking the performance measurement system. Similar occurrences can be observed in the outcomes of financial audit discussions between an auditor and auditee when changes are enacted to either or both of the audit report and the financial statements after a series of negotiations between auditor and client (Bame- Aldred and Kida, 2007). In such cases the identity of the auditor is given more prominence than the (invisible) discussions that have taken place out of sight of shareholders.…”

Section: Circulationsmentioning

confidence: 58%

Consultancy outputs and the purification of accounting technologies

Christensen

Skærbæk

2010

Accounting, Organizations and Society

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Section: Circulationsmentioning

confidence: 58%

Consultancy outputs and the purification of accounting technologies

Christensen

Skærbæk

2010

Accounting, Organizations and Society

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“…Hatfield et al (2008) investigate the conditions under which auditors are likely to use a reciprocity approach strategy for the resolution of audit differences and whether both client management negotiations style and client retention risk increase this effect. Bame-Aldred and Kida (2007) identify the negotiation tactics used by both auditors and financial managers.…”

Section: S -Auditingmentioning

confidence: 99%

Fifty-year overview of judgment and decision-making research in accounting

Trotman

Tan

Ang

2011

Accounting &Amp; Finance

102

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As part of the celebration of the fiftieth anniversary of AFAANZ, we consider the breadth of judgment and decision-making (JDM) experimental research in accounting over that 50-year period. Our review is divided by decade and between auditing, financial accounting and management accounting. In four major journals, we found 5745 papers between 1970 and 2009, which we consider impressive and strong support for the opportunity to publish in this field. Our aim is to encourage more JDM research from Australians and New Zealanders, and to allow researchers in particular specialisations to get a better understanding of the JDM research in other specialisations.

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“…However, clients may not necessarily have bad intentions when they seek to influence audits and no such presumption was made when conducting the current study. The choice of examining CFOs' potential influence on audits, rather than other parts of the client–auditor hierarchy outlined in Figure 1, relates to prior research concerning auditor–client interaction where the CFO has been found to hold a key role in negotiations with auditors (see Bame‐Aldred & Kida, 2007: 499). The issues dealt with in such negotiations have typically concerned financial reporting issues, e.g., issues dealt with during the execution of the audit.…”

Section: Research Questionsmentioning

confidence: 99%

Chief Financial Officer Influence on Audit Planning

Hellman

2011

International Journal of Auditing

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Prior research suggests that the character of the relationship between client management and audit partners will influence the audit and that current audit methodologies rely more extensively on auditor-client interaction. The current paper contributes to the literature by investigating how chief financial officers (CFOs) seek to influence audit planning in connection with planning meetings with auditors. The data consist of semi-structured interviews with the CFOs of 52 Swedish listed companies. The results suggest that CFOs seek to influence audit planning, particularly with regard to internal controls and the selection and scope of entities subject to audit. Furthermore, the CFOs often tended to assume the role of those charged with governance rather than the role of management during the audit planning phase, which may have implications for ISA 300 (Planning an audit of financial statements). SUMMARYIn light of the discussions and negotiations between chief financial officers (CFOs) and audit partners that have been observed in previous studies, and the increased use of audit tools that require much auditor-client interaction, the current study examines if, how and why CFOs seek to influence audit planning. The empirical study was conducted during 2003-2004 and is based on semi-structured interviews with the CFOs of 52 Swedish listed companies, representing 57% of the total market capitalization. The interview questions were framed around the planning meeting that the CFO and the audit partners have before the audit commences. Planning discussions with management are specifically referred to in International Standards on Auditing (ISA) 300 (Planning an audit of financial statements) and the current study provides further insight regarding what happens at the planning meetings, from the CFO's perspective. The analysis of the data suggests that the CFOs were seeking to influence the audit in 49 (96%) of the companies. In ten of these companies, the sought influence was classified as weak (20%), whereas it was classified as intermediate in 31 (63%) of the companies and as strong in eight (16%) of the companies. During the planning meetings, the CFOs were primarily seeking influence over internal control issues and the selection and scope of entities subject to audit.

show abstract

A comparison of auditor and client initial negotiation positions and tactics

Cited by 107 publications

References 16 publications

Consultancy outputs and the purification of accounting technologies

Consultancy outputs and the purification of accounting technologies

Fifty-year overview of judgment and decision-making research in accounting

Chief Financial Officer Influence on Audit Planning

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