Understanding Auditor-client Relationships

Understanding Auditor-client Relationships
Author: Gary Kleinman
Publisher: Gary Kleinman
Total Pages: 137
Release: 2001
Genre: Business & Economics
ISBN: 1558761802

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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.

The Effects of Auditor-client Relationships, Auditor-auditor Relationships, and Persuasive Communication on Auditor's Objectivity

The Effects of Auditor-client Relationships, Auditor-auditor Relationships, and Persuasive Communication on Auditor's Objectivity
Author: Nicole Renee McCoy
Publisher:
Total Pages: 121
Release: 2010
Genre:
ISBN:

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Auditors are subjected to various affective states during a financial examination and these affective states influence how auditors retrieve, encode, and process audit observations and client representations. This study investigated the relationship between the affective states induced by auditors' interpersonal relationships and the auditors' judgments and assessed whether or not any one of these interpersonal relationships has more influence on auditors' decisions than any other interpersonal relationships. The audit review process should decrease the adverse impact of these affective states on audit judgment; however, the audit manager's review judgments may incorporate his/her subordinate judgments that are communicated via stylized workpapers. As predicated, the affective states induced by the client relationship and the partner's expectations collectively impaired audit judgment and when persuasive communication from a subordinate team member was evaluated with the affective states induced by the client relationship and the partner's expectations, a statistically significant three-way interaction was found. The affective states induced by the client relationship consistently influenced audit judgments for both the less experienced auditor and the more experienced auditor.

The Study on the Relationship Between Auditor Expertise and Book-Tax Differences Before and After the Passage of the Mandatory Auditor Rotation

The Study on the Relationship Between Auditor Expertise and Book-Tax Differences Before and After the Passage of the Mandatory Auditor Rotation
Author: Laney Tsai
Publisher:
Total Pages:
Release: 2016
Genre:
ISBN:

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The study examines the impact of mandatory auditor rotation on auditor expertise and book-tax differences using data from Taiwan, where the names of signing audit partners and audit firm are required to disclose audited financial statements. The rotation of auditor every five years became mandatory in Taiwan after 2004. The regime changes in Taiwan provide a unique setting to examine how the mandatory auditor rotation regime affects the auditor industry expertise's attitude toward their clients' tax avoidance.We divided our sample into two groups to compare the relationship between auditor expertise and book-tax differences in a regime without rotation (pre-mandatory rotation period: 1998-2003) and one with rotation (mandatory rotation period: 2004-2008). We find that auditor industry expertise has professional tax knowledge, and thus plays a critical role in their clients' tax avoidance strategies during pre-mandatory rotation period. However, we also find that the companies audited by auditor industry expertise are less likely to engage tax avoidance activities after implementing auditor mandatory rotation regime. Our results suggest that a limit on the length of the auditor-client relationship result in greater incentives for auditors to maintain independence or avoid excessive familiarity to each other, which effectively restrains firms' opportunistic tax avoidance activities. Overall, our results provide empirical support for the arguments put forward by advocates of mandatory rotation from tax avoidance perspective.

Handbook of Organizational Behavior, Revised and Expanded

Handbook of Organizational Behavior, Revised and Expanded
Author: Robert T. Golembiewski
Publisher: CRC Press
Total Pages: 828
Release: 2000-10-24
Genre: Political Science
ISBN: 1482290014

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Building upon the strengths of the first edition while continuing to extend the influence and reach of organizational behavior (OB), the Second Edition of this groundbreaking reference/ text analyzes OB from a business marketing perspective-offering a thorough treatment of central, soon-to-be central, contiguous, and emerging topics of OB to facilitate greater viability and demand of OB practice. New edition incorporates more comparative perspectives throughout! Contributing to the dynamic, interdisciplinary state of OB theory and practice, the Handbook of Organizational Behavior, Second Edition comprehensively covers strategic and critical issues of the OB field with descriptive analyses and full documentation details the essential principles defining core OB such as organizational design, structure, culture, leadership theory, and risk taking advances solutions to setting operational definitions throughout the field comparatively discusses numerous situations and variables to provide clarity to mixed or inconclusive research findings utilizes cross-cultural approaches to examine recent issues concerning race, ethnicity, and gender reevaluates value standards and paradigms of change in OB investigates cross-national examples of OB development, including case studies from the United States and India and much more! Written by 45 worldwide specialists and containing over 3500 references, tables, drawings, and equations, the Handbook of Organizational Behavior, Second Edition is a definitive reference for public administrators, consultants, organizational behavior specialists, behavioral psychologists, political scientists, and sociologists, as well as a necessary and worthwhile text for upper-level undergraduate and graduate students taking organizational behavior courses in the departments of public administration, psychology, management, education, and sociology.