Effects of Client Pressure and Audit Firm Management Control Systems on Auditor Judgments

摘要: We examine the effects of pressures from client management and audit firm’s own control systems (MCS) on auditors’ willingness to accept an aggressive accounting that is preferred by management. find auditors perceiving more pressure client’s react increasing size proposed adjustment needed bring into conformity with GAAP. However, we when promotes jointness interests they share auditor or MCS focuses service quality experiences increased affinity for proposes lower adjustments in response same facts. Furthermore, auditor’s leads intended use negotiation tactics are consistent relative adjustment: larger result relatively greater intentions contending whereas smaller lead compromising tactics. Two implications emerge our research. First, management, if subtle its pressure, can nudge towards accepting wants. Second, facilitate identification needs leading a lesser challenge accounting.