Purpose: This study aims to explore the effect of negotiating audit differences on auditors’ internal control deficiency (ICD) severity assessments, an ensuing, non-negotiated judgment, in an integrated audit. Design/methodology/approach: The experiment manipulates the client’s concession...

We examine auditors' response to management's statements of confidence accompanying the inquiry explanation regarding a critical accounting estimate in lower versus higher client risk contexts. Recent research finds that management overconfidence is associated with an increased risk of...

Accounting estimates are highly subjective and multiple estimation alternatives often exist for a single account. When addressing audit-related adjustments with clients, auditors must decide whether to discuss all possible estimation alternatives or approach the client with only a single,...