Title: Auditor-auditee negotiation: effects of auditor independence and expertise in Tunisian context

Authors: Manel Hadriche Sahnoun, Mohamed Ali Zarai

Addresses: Accounting Department, University of Tunis, Publiposte, BP225, Avenue Thaieb M'hiri, Ariana 2080, Tunisie, Africa. ' Accounting Department, Community College, Al-baha University, BP 1598, Al-baha 22999, Kingdom of Saudi Arabia

Abstract: The purpose of this paper is to study the impact of auditor independence (auditor tenure) and expertise (auditor industry specialist, auditor experience and the audit firm size) on auditor-auditee negotiation outcomes. For the entire sample of 53 Tunisians firms for the period 2001-2007, our results indicate non-significant relationship between auditor tenure and auditor-auditee negotiation outcomes, a positive and significant relationship between auditor experience and the extent to which the auditee agreed with the auditor over the financial reporting issues. On the other hand, the results indicate a positive but non-significant relationship between the auditor industry specialist and the negotiation outcome. For the audit firm size, we find a negative and significant effect on negotiation outcome. Indeed, we find no significant relationship between auditee importance and size and auditor-auditee negotiation outcome.

Keywords: auditor-auditee negotiation; auditor independence; auditor tenure; auditor expertise; industry specialists; auditor experience; audit firm size; Tunisia; auditee importance.

DOI: 10.1504/IJCA.2011.039607

International Journal of Critical Accounting, 2011 Vol.3 No.1, pp.91 - 106

Published online: 21 Oct 2014 *

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