Audit Conflict: An Empirical Study of the Perceived Ability of Auditors to Resist Management Pressure.
Abstract ABSTRACT: The objective of this study is to examine how certain contextual factors in auditor-client conflicts affect the perceived ability of auditors to resist client pressure. A review of the literature resulted in the identification of four factors hypothesized to affect sophisticated financial statement users' perceptions of audit conflict outcomes: nature of conflict issue, client's financial condition, provision of MAS by the audit firm, and the degree of competition in the audit services market. A full-factorial, repeated measures ANOVA experiment was conducted using senior loan officers as subjects. The results indicate that a client in good financial condition is perceived as being more likely to obtain its preferred outcome to an audit conflict than a client in poor financial condition. Clients are also viewed as being more likely to obtain their preferred resolution to a conflict when the conflict issue is not dealt with precisely by the technical standards.
- DOI
- 10.2308/tar-4487699
- Volume
- 60 (2)
- Pages
- 202-211
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref