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The Relationship Of Cognitive Effort, Information Acquisition Preferences And Risk To Simulated Auditor–Client Negotiation Outcomes, Gary Kleinman, Dan Palmon, Kyunghee Yoon
The Relationship Of Cognitive Effort, Information Acquisition Preferences And Risk To Simulated Auditor–Client Negotiation Outcomes, Gary Kleinman, Dan Palmon, Kyunghee Yoon
Department of Accounting and Finance Faculty Scholarship and Creative Works
The auditor–client relationship is a legally-mandated relationship in which one party, the auditor, is hired and paid by the auditee (client) to inform third party stakeholders as to whether the client firm’s financial statements are presented in conformity with national financial accounting standards. When these statements do not meet the criteria for acceptable financial statements, a negotiation situation may arise in which the auditor is presumed to act in the best interests of shareholders and creditors who have no independent knowledge of the auditor’s findings. The client management may then feel forced to defend its numbers. The result is a …
A Negotiation-Oriented Model Of Auditor-Client Relationships, Gary Kleinman, Dan Palmon
A Negotiation-Oriented Model Of Auditor-Client Relationships, Gary Kleinman, Dan Palmon
Department of Accounting and Finance Faculty Scholarship and Creative Works
The increasing frequency and complexity of inter-organizational relationships suggests that inter-organizational negotiations should represent an area of increasing concern to management and academicians. Unfortunately, there is little theorizing about, nor study of, these negotiations. The few extant models are heavily influenced by models of individual negotiating styles that are then raised to the inter-organizational level with minimal change. The model developed here attempts to provide a framework for understanding the context of these interorganizational negotiations by identifying and illuminating factors that influence the outcome of interactions in various long-term supplier relationships. Factors discussed include dynamic and stable environments, organizational cultures, …