The Effects of Ingratiation and Client Incentive on Auditor Judgment

Abstract

Anecdotal evidence from practice suggests clients can influence auditor judgment using ingratiation, a strategic influence tactic through which the ingratiator attempts to induce positive affect to facilitate persuasion. I provide initial academic evidence concerning the effect of ingratiation on auditor judgment. I find that when the client ingratiates, auditors are more likely to comply with the requests of clients with low incentive to influence the auditor than those with high incentive. Thus, ingratiation appears to magnify the effect of client incentive on auditor judgment. I find auditors experience stronger positive affect toward both ingratiating clients and clients with low incentive relative to non-ingratiating clients and clients with high incentive. Further, auditors are more likely to comply with client requests as positive affect toward the client increases. The results suggest clients can influence auditor judgment through ingratiation under certain circumstances, and clients can strategically induce positive affect to influence auditor judgment.

The Effects of Multitasking on Auditors’ Judgment Quality

“…For example, Tice et al (2007) find that, after an initial act requiring self-control, participants performed equally well on subsequent tasks requiring self-control after receiving inductions of positive mood or emotion as those participants whose self-control resources were not depleted, and better than participants whose self-control resources were depleted but did not receive the intervention. Thus, implementable strategies such as ingratiating techniques (e.g., compliments) can bolster positive affect (Robertson 2010), which in turn should replenish a depleted ego. Beyond directly examining positive affect, research has demonstrated other affectrelated mechanisms that replenish ego.…”

The impact of emotional intelligence on auditor judgment

“…However, prior studies of accounting professionals in other cultures have concluded that both time budget pressure and client pressure increase auditor propensity to make unethical decisions(Robertson, 2010). While the time pressure conditions were adopted from a prior study, the high time pressure manipulation indicated that, owing to reduced audit fees, the audit partner decided to reduce budgeted hours.…”

Behavioral Accounting and its Interactions

“…But there are some evidences that clients may inluence auditor judgment through ingratiation which can inluence the judgment of the target in many setings [37]. Prior research stated that afect toward the client can inluence auditor judgment; as an example, inexperienced auditors who felt negative afect toward the client assess a higher risk of inventory obsolescence than who did not experience afect toward the client.…”

“…Auditors are required to exercise professional skepticism when making judgments based on audit evidence without being inluenced by clients [37,38]. But there are some evidences that clients may inluence auditor judgment through ingratiation which can inluence the judgment of the target in many setings [37].…”