Download or read book Understanding Auditor client Relationships written by Gary Kleinman and published by Gary Kleinman. This book was released on 2001 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work is intended to assist researchers, regulators, and practitioners who are interested in the topic of auditor independence. It presents a comprehensive model of the individual, work place, organization, inter-organizational, and organizational field level determinants of the topic.
Download or read book Evidence on the Auditor and Client Relationship written by Scott Whisenant and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study I describe the population of auditor changes for companies subject to filing requirements with the Securities Exchange Commission over a five-year period 1992 to 1996. I use data obtained from Auditor Trak on the reasons why corporate managers change auditors. The description of the auditor changes over a five-year period and additional examination of factors leading to client-initiated changes, not only provide insights into client and auditor relations not documented in prior studies, but also offer evidence which financial reporting regulators can use to assess the need for increased or improved disclosures required when companies change auditors.The study has two primary findings. First, I examine auditor changes over a five-year period and document differences in those auditor changes dependent on the party initiating of the auditor realignment decision. The data suggest that clients are three times as likely to initiate a change as compared to auditors. Clients most frequently initiate an auditor change (54 percent of the sample), and auditors resign or decline to stand for re-election in 16 percent of observations. The remaining 30 percent are due to factors that cannot be reliably categorized as either client or auditor initiated. Second, I use evidence from prior studies to classify managers' reasons for an auditor change into three groups that summarize the motivating factors surrounding auditor realignment decisions. These groups relate to structural changes of the company, audit fees, and auditor-client frictions. The second primary result is obtained by grouping the reasons into similar motivating factors as shown in the literature (i.e., other than a simple classification by initiating party) for client-initiated changes. A structural change in the client or the auditor leads to the largest frequency of changes (38 percent) among client-initiated auditor switches. Another 25 percent of client-initiated changes report audit fees as being the reason for the change. Managers report that auditor-client frictions led to the change for approximately 5 percent of the changes. The remaining 32 percent cannot be reliably classified along the lines suggested by prior literature.
Download or read book The Effect of Source and Nature of Audit Evidence Duration of Auditor client Relationship and Personality of the Auditor on an Auditor s Internal Control Judgement written by Rosalind Tan Lee Hong and published by . This book was released on 1990 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Behind Closed Doors What Company Audit is Really About written by V. Beattie and published by Springer. This book was released on 2001-03-13 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book takes us 'behind closed doors' to uncover the nature of the relationship between the audit engagement partner and the company finance director in major listed companies. Based on matched interviews with finance directors and audited engagement partners of six listed companies, the book uncovers both sides' perceptions of how contentious and non-contentious issues are resolved. New insights are provided about the workings of the audit process itself, how negotiation is conducted and the personal relationships and balance of power between the auditors and the board of directors.
Download or read book The Auditor client Contractual Relationship written by Linda DeAngelo and published by . This book was released on 1981 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auditors Customer Relationship Management Activities and Managers Cooperation with Auditor Evidence Requests written by Richard C. Hatfield and published by . This book was released on 2020 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditors execute customer relationship management activities (hereafter CRM), such as minimizing disruptions and communicating effectively, to maintain or increase customer satisfaction of client managers. These activities are typically linked to auditors' commercial objectives. However, using Social Exchange Theory, we link CRM to improvements in the audit process. In an experiment, we predict and find that delivering higher quality CRM increases managers' cooperation with auditor evidence requests. Compared to managers experiencing lower quality CRM, managers experiencing higher quality CRM assign higher priority to auditor evidence requests, work harder to gather audit-relevant information, are more forthcoming with information, and convey an openness to future rounds of negotiation. Importantly, managers experiencing higher quality CRM are even more forthcoming with information that contradicts their preferred accounting position and may not be readily discoverable by auditors. These findings add to our understanding of the complex relationship between auditors and their clients, suggesting a positive influence of CRM on audit processes, which should be considered by those interested in understanding and regulating auditor-client relationships.
Download or read book Audit and Accounting Guide written by AICPA and published by John Wiley & Sons. This book was released on 2020-07-24 with total page 768 pages. Available in PDF, EPUB and Kindle. Book excerpt: From financial reporting to revenue recognition to grants and contracts to auditor report changes, you have a lot going on in the not-for-profit financial arena right now. Whether you're already an expert in NFP audit and accounting standards or just getting started, this is the practical guidance you need. This must-have resource for nonprofits accounting and auditing professionals is an essential reference that will assist you with the unique aspects of accounting and financial statement preparation and auditing for not-for-profit entities. It will help you with the following Understand and implement recent updates and changes, including those related to financial reporting, revenue recognition, and grants and contracts Gain a full understanding of the accounting issues unique to not-for-profit entities Assist in the implementation of auditor report changes.
Download or read book Auditor Client Relationship and Audit Quality written by Suhaib Aamir and published by LAP Lambert Academic Publishing. This book was released on 2011-07 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: Different scandals around the globe during the past, in specific during the last decade, have intrigued the stakeholders to question the roles of both auditors and management. But most of the fingers since then have been raised on the role of auditors, because it is the auditors who are entrusted with the responsibility to detect any errors or frauds in the financial reports of the client-firm. Apart from this, the long-term auditor client relationship has been the center of attention in most of the discussions and debates as well. Numerous studies have been conducted by the academic researchers, financial and professional analysts, regulatory authorities and governing bodies, and in some cases by the auditors and the firms as well regarding the effects of long-term auditor-client relationship on audit quality, equity risk premium, financial reports quality, audit pricing etc. These studies provide us with different results, both with the positive and negative associations and effects of long-term auditor-client relationship on the basis of different factors and contexts. Therefore, we would be studying this relationship in between auditors and SME clients.
Download or read book Auditqual written by Angus Duff and published by . This book was released on 2004-01-01 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This research report considers service quality and technical quality as components of overall audit quality, and explores their importance to audit firms as a means to help attract and retain high calibre staff as well as to generate sufficient income. It considers the audit expectations gap and service quality and from this develops a model of audit quality based on the existing research literature on the topic. Finally, it examines the external communication and brochures provided for clients by the country's largest audit firms. The research report reflects a combination of documentary research and analysis together with interviews of a sample of auditors, finance directors and fund managers"--p. [i].
Download or read book Crash Risk and the Auditor Client Relationship written by Jeffrey L. Callen and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether the term of the auditor-client relationship (i.e., auditor tenure) is associated with future stock price crash risk measured both ex ante and ex post. Using a large sample of U.S. public firms with Big Four auditors, we find robust evidence that auditor tenure is negatively related to one-year-ahead stock price crash risk. The evidence is consistent with monitoring-by-learning where development of client-specific knowledge over the term of the auditor-client relationship enhances auditors' ability to detect and deter bad news hoarding activities by clients, thereby reducing future crash risk. This result holds even after controlling for endogeneity of the tenure/crash risk relation. We further provide evidence indicating that option market investors do not fully incorporate the information contained in the term of auditor-client relationship in predicting future stock price crash risk. Our empirical results have important policy implications for regulators concerned with ensuring auditor independence.
Download or read book Does the Timing of Auditor Changes Affect Audit Quality Evidence from the Initial Year of the Audit Engagement written by Cory A. Cassell and published by . This book was released on 2017 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: We focus on the first year of the auditor-client relationship and investigate whether audit quality varies with the timing of the new auditor's appointment. We find that audit quality is not lower for companies that engage new auditors before the end of the third fiscal quarter than for companies that do not change auditors. However, companies that engage new auditors during or after the fourth fiscal quarter are more likely to misstate their audited financial statements than companies that engage new auditors earlier in the year and companies that do not change auditors. In additional tests, we find that the decrease in audit quality associated with late auditor changes is more pronounced for companies with complex operations (i.e., more operating segments). These results suggest that the extent to which audit quality suffers in the first year of audit engagements is affected by both the amount of time required to understand the client's business, assess risks, and perform the audit (all of which are driven by client complexity), as well as the amount of time available for auditors to perform these tasks.
Download or read book Navigating the Auditor client Relationship During Sensitive Events written by Mary Dodgson and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Maintaining a positive auditor-client relationship is critical for audit firms, particularly during sensitive events. For instance, audit firms state in transparency reports that they take steps to minimize disruption during audit partner rotations, yet it is unclear what these actions entail or the potential effects of these actions on auditor independence and audit quality. I use multiple methods to provide insight into these practices and their related effects. First, I interview 20 audit partners to learn about the process by which audit firms manage the auditor-client relationship during sensitive partner rotation events. Interviewees describe how audit firms identify appropriate partner candidates and procedures followed to select and prepare the next lead partner. Respondents also elaborate on firms' ongoing relationship-managing activities, including the assignment of non-decision-making liaisons (often referred to as relationship partners or "RPs") to a subset of engagements to assist in navigating the auditor-client relationship during sensitive events (i.e., in preparation for upcoming partner rotations and when contentious auditor-client issues arise). Second, I conduct an experiment with financial executives to examine the influence that RPs may have on the resolution of contentious auditor-client issues. I also consider how RP influence may vary depending on the extent to which the audit partner and client manager have tried, albeit unsuccessfully, to resolve the issue (i.e., negotiation ripeness). I find that, in a traditional setting in which a RP is not involved, client managers concede less toward an audit partner's more appropriate position when the negotiation has reached a more ripe stage than when the negotiation stage is less ripe. However, I find it is at a more ripe stage that RP intervention is more effective in moving client managers toward a resolution, limiting the risk of seeking alternative methods of resolution that may impair the auditor-client relationship (e.g., issuing a qualified audit opinion). Collectively my findings inform regulators and researchers about the ongoing process by which audit firms manage the auditor-client relationship during sensitive events and how one common approach for managing the auditor-client relationship (i.e., assignment of RPs to a subset of engagements) influences the auditor-client relationship and audit quality.
Download or read book Government Auditing Standards 2018 Revision written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.
Download or read book Auditor Self Actualization and Their Ability to Resist Client Pressure written by Rachel Papirakis and published by . This book was released on 2016 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this study is to evaluate the existence of a relationship between auditor self-actualization and auditor resistance to client pressure. The hypotheses of this study predict that auditors with a high self-actualization and a stronger attachment to independence will show a higher level of resistance to client pressure. It is also predicted that while auditors are influenced by client power, auditors with a higher self-actualization will be less influenced by client power. A mail survey was conducted of Canadian Big 4 audit partners, with a final sample of 136 partners, for a 32.9% response rate. The results show that auditor resistance to client pressure is positively correlated with auditor self-actualization and auditor attachment to independence and negatively correlated with client power, supporting my general model. Contrary to the hypotheses, results show that the relationship between auditor self-actualization and resistance to client pressure is not conditional to a higher attachment to independence. A possible explanation is that auditors have a higher attachment to independence, meaning that they can not be categorized as higher or lower attachment. Results also indicate that auditor attachment to independence is a mediating variable in the relationship between auditor self-actualization and auditor resistance to client pressure. This study is the first to study auditor self-actualization, and to provide empirical evidence on the power balance in the auditor-client relationship.
Download or read book Auditor client relationships written by Ahmed Beloucif and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Investigation of the Impact of Source Expertise in the Auditor client Relationship written by James E. Rebele and published by . This book was released on 1984 with total page 464 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Affiliated Former Partners on the Audit Committee written by Brant E. Christensen and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Researchers and practitioners have expressed the need to understand better the interactions between audit committees and auditors and how these interactions affect audits. Former partners affiliated with the external auditor and serving on the audit committee are a subset of audit committee members who can affect the audit. Consistent with social identity theory, we find that companies with an affiliated partner on their audit committee are less likely to dismiss the member's former firm than companies without the affiliation. Further, we found improved audit quality and increased effectiveness of auditor effort when affiliated partners serve on the audit committee. Finally, this quality improvement occurs contemporaneously with a reduction in audit fees and time spent on fieldwork, suggesting increased efficiency. Our study provides evidence that affiliated former partners on audit committees extend the tenure of the auditor-client relationship while also improving audit processes and outcomes.
