Int. J. of Monetary Economics and Finance   »   2015 Vol.8, No.4

 

 

Title: Effect of auditor and client negotiation experience on audit results: an experimental test

 

Authors: Leliana Maria Angela; Fitria Husnatarina

 

Addresses:
Palangka Raya University, Kampus Unpar Tunjung Nyaho, Jalan Yos Sudarso, Kotak Pos 7311A, Indonesia
Palangka Raya University, Kampus Unpar Tunjung Nyaho, Jalan Yos Sudarso, Kotak Pos 7311A, Indonesia

 

Abstract: This study examines the effect of auditor and client negotiation experience in terms of asset valuation cases. The research background is the fact that negotiations become an important part of the audit process and experience is thought to be an important factor in negotiation processes. We conduct 2 × 2 between subject the experiment setting. We use 40 students majoring in Accounting and Management as a surrogate of auditor and client. Our result shows that negotiation experience affects the outcome of negotiations. Auditor with higher negotiation experience will provide more conservative asset value at the end of the negotiation process. Our result also argues that negotiation experience will enable auditor to withstand the pressures of the client. This study contributes to audit practise that public accounting firms who need to prepare their auditors with good negotiation skills when dealing with the management.

 

Keywords: auditor-client negotiation; auditor experience; client experience; negotiation skills; negotiation outcome; asset valuation; conservative asset value; management pressure; public accounting; audit process.

 

DOI: 10.1504/IJMEF.2015.073231

 

Int. J. of Monetary Economics and Finance, 2015 Vol.8, No.4, pp.345 - 359

 

Available online: 27 Nov 2015

 

 

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