Does client acquisition impair the objectivity of engagement partners and engagement quality review partners?
We conduct two experiments using experienced audit partners as participants to investigate whether engagement partners’ involvement in the client acquisition process as the contact partner can influence their subsequent audit judgments, and whether the engagement quality review partner’s judgments a...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/162104 |
| _version_ | 1811690171494563840 |
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| author | Chan, Ian Duh, Rong-Ruey Tan, Hun-Tong |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Chan, Ian Duh, Rong-Ruey Tan, Hun-Tong |
| author_sort | Chan, Ian |
| collection | NTU |
| description | We conduct two experiments using experienced audit partners as participants to investigate whether engagement partners’ involvement in the client acquisition process as the contact partner can influence their subsequent audit judgments, and whether the engagement quality review partner’s judgments are influenced when he or she is aware that engagement partners play both roles. As predicted, we find that engagement partners who are also the contact partners during client acquisition tend to make judgments that are biased in favor of the client. However, engagement quality review partners are not sensitive to whether the engagement partner was the contact partner or not, but may be motivated to make decisions that favor the engagement partner. Our results provide a deeper understanding of how the client acquisition process influences the judgments of various partners later in the course of audit engagements. |
| first_indexed | 2024-10-01T05:59:45Z |
| format | Journal Article |
| id | ntu-10356/162104 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T05:59:45Z |
| publishDate | 2022 |
| record_format | dspace |
| spelling | ntu-10356/1621042023-05-19T07:31:17Z Does client acquisition impair the objectivity of engagement partners and engagement quality review partners? Chan, Ian Duh, Rong-Ruey Tan, Hun-Tong Nanyang Business School Business::Auditing Engagement Partner Review Process We conduct two experiments using experienced audit partners as participants to investigate whether engagement partners’ involvement in the client acquisition process as the contact partner can influence their subsequent audit judgments, and whether the engagement quality review partner’s judgments are influenced when he or she is aware that engagement partners play both roles. As predicted, we find that engagement partners who are also the contact partners during client acquisition tend to make judgments that are biased in favor of the client. However, engagement quality review partners are not sensitive to whether the engagement partner was the contact partner or not, but may be motivated to make decisions that favor the engagement partner. Our results provide a deeper understanding of how the client acquisition process influences the judgments of various partners later in the course of audit engagements. Ministry of Education (MOE) This work was supported by Singapore Ministry of Education Tier 2: [Grant Number MOE2019-T2-2-137] and United Overseas Bank Endowed Chair. 2022-10-04T06:08:41Z 2022-10-04T06:08:41Z 2022 Journal Article Chan, I., Duh, R. & Tan, H. (2022). Does client acquisition impair the objectivity of engagement partners and engagement quality review partners?. European Accounting Review, 1-20. https://dx.doi.org/10.1080/09638180.2022.2074493 0963-8180 https://hdl.handle.net/10356/162104 10.1080/09638180.2022.2074493 2-s2.0-85131196470 1 20 en MOE2019-T2-2-137 European Accounting Review © 2022 European Accounting Association. All rights reserved. |
| spellingShingle | Business::Auditing Engagement Partner Review Process Chan, Ian Duh, Rong-Ruey Tan, Hun-Tong Does client acquisition impair the objectivity of engagement partners and engagement quality review partners? |
| title | Does client acquisition impair the objectivity of engagement partners and engagement quality review partners? |
| title_full | Does client acquisition impair the objectivity of engagement partners and engagement quality review partners? |
| title_fullStr | Does client acquisition impair the objectivity of engagement partners and engagement quality review partners? |
| title_full_unstemmed | Does client acquisition impair the objectivity of engagement partners and engagement quality review partners? |
| title_short | Does client acquisition impair the objectivity of engagement partners and engagement quality review partners? |
| title_sort | does client acquisition impair the objectivity of engagement partners and engagement quality review partners |
| topic | Business::Auditing Engagement Partner Review Process |
| url | https://hdl.handle.net/10356/162104 |
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