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A Grounded Theory Model of Auditor‐Client Negotiations
Author(s) -
Beattie Vivien,
Fearnley Stella,
Brandt Richard
Publication year - 2004
Publication title -
international journal of auditing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.583
H-Index - 21
eISSN - 1099-1123
pISSN - 1090-6738
DOI - 10.1111/j.1099-1123.2004.00225.x
Subject(s) - audit , negotiation , accounting , grounded theory , outcome (game theory) , business , quality audit , principal (computer security) , joint audit , process (computing) , public relations , qualitative research , internal audit , political science , economics , sociology , computer science , social science , mathematical economics , law , operating system
The central research question addressed in this paper is ‘How do companies and their auditors resolve important audit issues?’ In‐depth interviews are conducted with the audit partners and finance directors of a varied group of six major UK listed companies who had recently experienced audit interactions involving 22 significant accounting issues. A grounded theory model is developed of the negotiation process and the factors that influence the nature of the outcome of interactions. This model identifies, as principal analytical categories, a range of general relationship factors and specific accounting issue factors that influence aspects of the negotiation process. These aspects include the parties involved, the strategies adopted, the quality of the financial reporting outcome and the ease with which it is achieved. A secondary outcome of the research is that distinct categories of audit engagement partner are identified, termed the crusader , the safe pair of hands , the accommodator and the truster .