Title: Auditor-client negotiations: applying the dual concerns model in an emerging economy

Authors: Emad Awadallah

Addresses: Accounting and Information Systems, College of Business and Economics, Qatar University, Doha, Qatar

Abstract: Professional auditors and their clients often encounter situations in which they disagree on the treatment of certain accounting transactions. However, because each conflict often involves unique circumstances, the resolution may also be influenced by several factors that affect the relative negotiating power of the two parties involved. Based on a sample of 152 professional auditors in Qatar, this paper conducted an experimental study to address the chosen negotiation strategy the auditor adopts in audit disputes with client management. Based on the dual concerns model, the negotiation strategies examined are: 1) competing; 2) accommodating; 3) collaborating; 4) compromising; 5) avoiding. The results showed that there is no single, rigid approach of dealing with audit conflicts. Nonetheless, from the results, it may be implied that they will use some strategies more readily than others, and therefore tend to rely upon those strategies more heavily.

Keywords: audit disputes; auditor-client interactions; negotiations strategies; dual concerns model; non-audit services; NAS; audit tenure; AT; audit firm size; corporate governance; experimental study; Qatar.

DOI: 10.1504/IJMFA.2018.093497

International Journal of Managerial and Financial Accounting, 2018 Vol.10 No.3, pp.250 - 272

Received: 07 Dec 2017
Accepted: 09 Apr 2018
Published online: 26 Jul 2018 *

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