IDEAS home Printed from https://ideas.repec.org/a/eee/aosoci/v65y2018icp33-43.html
   My bibliography  Save this article

The effects of an auditor's communication mode and professional tone on client responses to audit inquiries

Author

Listed:
  • Saiewitz, Aaron
  • Kida, Thomas

Abstract

In this study, we investigate whether receiving an auditor inquiry via e-mail differentially affects client responses as compared to more traditional modes of inquiry, and whether those responses are affected by the auditor's professional tone. In an experiment, experienced business professionals respond to an auditor's information request regarding a potential accounting adjustment. We varied the communication mode of the request (e-mail, audio, or visual) and the professional tone of the communication (more versus less professional) and then measured the extent to which participants revealed information that either supported or did not support the client's accounting position. We find that if an auditor asks for information via e-mail, client responses are more biased towards information that supports the client's position as compared to audio or visual inquiries. In addition, we find that clients respond in a more biased manner when the inquiry is worded in a less professional tone as compared to a more professional tone. Further underscoring the implications of these findings for audit outcomes, our results suggest that if an auditor's request leads clients to provide a response that is biased towards client-supporting information, clients may be less likely to agree with an auditor's proposed income-decreasing adjustment.

Suggested Citation

  • Saiewitz, Aaron & Kida, Thomas, 2018. "The effects of an auditor's communication mode and professional tone on client responses to audit inquiries," Accounting, Organizations and Society, Elsevier, vol. 65(C), pages 33-43.
    • Handle: RePEc:eee:aosoci:v:65:y:2018:i:c:p:33-43
    DOI: 10.1016/j.aos.2017.10.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0361368217300855
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.aos.2017.10.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ricchiute, David N., 1999. "The effect of audit seniors' decisions on working paper documentation and on partners' decisions," Accounting, Organizations and Society, Elsevier, vol. 24(2), pages 155-171, April.
    2. Stephen Perreault & Thomas Kida & M. David Piercey, 2017. "The Relative Effectiveness of Simultaneous versus Sequential Negotiation Strategies in Auditor†Client Negotiations," Contemporary Accounting Research, John Wiley & Sons, vol. 34(2), pages 1048-1070, June.
    3. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
    4. Fanning, Kirsten & David Piercey, M., 2014. "Internal auditors’ use of interpersonal likability, arguments, and accounting information in a corporate governance setting," Accounting, Organizations and Society, Elsevier, vol. 39(8), pages 575-589.
    5. Yip-Ow, Jackson & Tan, Hun-Tong, 2000. "Effects of the preparer's justification on the reviewer's hypothesis generation and judgment in analytical procedures," Accounting, Organizations and Society, Elsevier, vol. 25(2), pages 203-215, February.
    6. Frohlich, Norman & Oppenheimer, Joe, 1998. "Some consequences of e-mail vs. face-to-face communication in experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 35(3), pages 389-403, April.
    7. Hoffman, VB & Patton, JM, 1997. "Accountability, the dilution effect, and conservatism in auditors' fraud judgments," Journal of Accounting Research, Wiley Blackwell, vol. 35(2), pages 227-237.
    8. Ernst Fehr & Urs Fischbacher, 2004. "Social norms and human cooperation," Macroeconomics 0409026, University Library of Munich, Germany.
    9. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    10. D. Eric Hirst & Lisa Koonce, 1996. "Audit Analytical Procedures: A Field Investigation," Contemporary Accounting Research, John Wiley & Sons, vol. 13(2), pages 457-486, September.
    11. McCracken, Susan & Salterio, Steven E. & Gibbins, Michael, 2008. "Auditor-client management relationships and roles in negotiating financial reporting," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 362-383.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Madher E. Hamdallah & Salem Al-N’eimat & Anan F. Srouji & Manaf Al-Okaily & Khaldoon Albitar, 2022. "The Effect of Apparent and Intellectual Sustainability Independence on the Credibility Gap of the Accounting Information," Sustainability, MDPI, vol. 14(21), pages 1-22, November.
    2. Bryan K. Church & Narisa Tianjing Dai & Xi (Jason) Kuang & Xuejiao Liu, 2020. "The Role of Auditor Narcissism in Auditor–Client Negotiations: Evidence from China," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1756-1787, September.
    3. Aghazadeh, Sanaz & Joe, Jennifer R., 2022. "Auditors' response to management confidence and misstatement risk," Accounting, Organizations and Society, Elsevier, vol. 101(C).
    4. Siti Nurulhuda Mamat & Khair Syakira Bustamam & Siti Azrina Adanan & Amilia Saidin & A’ieshah Abdullah Sani & Khairunnisa Abd Samad, 2023. "Exploring Communication Channel Selection for Enhanced Audit Quality: Internship Student's Perspective," Information Management and Business Review, AMH International, vol. 15(3), pages 314-324.
    5. Aaron Saiewitz & Elaine (Ying) Wang, 2020. "Using Cultural Mindsets to Reduce Cross‐National Auditor Judgment Differences," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1854-1881, September.
    6. Benjamin P. Commerford & Sean A. Dennis & Jennifer R. Joe & Jenny W. Ulla, 2022. "Man Versus Machine: Complex Estimates and Auditor Reliance on Artificial Intelligence," Journal of Accounting Research, Wiley Blackwell, vol. 60(1), pages 171-201, March.
    7. Thiéry, Stéphanie & Lhuillery, Stephane & Tellechea, Marion, 2023. "How can governance, human capital, and communication practices enhance internal audit quality?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 52(C).
    8. Bennett, G. Bradley & Hatfield, Richard C., 2018. "Staff auditors' proclivity for computer-mediated communication with clients and its effect on skeptical behavior," Accounting, Organizations and Society, Elsevier, vol. 68, pages 42-57.
    9. Ricci, Michael A., 2022. "How better client service performance affects auditors' willingness to challenge management's preferred accounting," Accounting, Organizations and Society, Elsevier, vol. 103(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ashley A. Austin & Jacqueline S. Hammersley & Michael A. Ricci, 2020. "Improving Auditors' Consideration of Evidence Contradicting Management's Estimate Assumptions†," Contemporary Accounting Research, John Wiley & Sons, vol. 37(2), pages 696-716, June.
    2. Trotman, Ken T. & Bauer, Tim D. & Humphreys, Kerry A., 2015. "Group judgment and decision making in auditing: Past and future research," Accounting, Organizations and Society, Elsevier, vol. 47(C), pages 56-72.
    3. Solomon, Ira & Trotman, Ken T., 2003. "Experimental judgment and decision research in auditing: the first 25 years of AOS," Accounting, Organizations and Society, Elsevier, vol. 28(4), pages 395-412, May.
    4. repec:dau:papers:123456789/3232 is not listed on IDEAS
    5. Aaron Saiewitz & Elaine (Ying) Wang, 2020. "Using Cultural Mindsets to Reduce Cross‐National Auditor Judgment Differences," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1854-1881, September.
    6. Bedford, David S. & Bisbe, Josep & Sweeney, Breda, 2019. "Performance measurement systems as generators of cognitive conflict in ambidextrous firms," Accounting, Organizations and Society, Elsevier, vol. 72(C), pages 21-37.
    7. Bryan K. Church & Narisa Tianjing Dai & Xi (Jason) Kuang & Xuejiao Liu, 2020. "The Role of Auditor Narcissism in Auditor–Client Negotiations: Evidence from China," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1756-1787, September.
    8. Eun-Ho Kim & Dongho Yoo & Sun-Jae Doh, 2021. "Self-construal on brand fan pages: the mediating effect of para-social interaction and consumer engagement on brand loyalty," Journal of Brand Management, Palgrave Macmillan, vol. 28(3), pages 254-271, May.
    9. Mingyu Zhang & Yuhuan Xia & Shuang Li & Wenbing Wu & Shuxiang Wang, 2019. "Crowd Logistics Platform’s Informative Support to Logistics Performance: Scale Development and Empirical Examination," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    10. Sweeney, John T. & Suh, Ik Seon & Dalton, Kenneth C. & Meljem, Sylvia, 2017. "Are workpaper reviews preparer-specific?," The British Accounting Review, Elsevier, vol. 49(6), pages 560-577.
    11. Ágnes Szukits, 2022. "The illusion of data-driven decision making – The mediating effect of digital orientation and controllers’ added value in explaining organizational implications of advanced analytics," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(3), pages 403-446, September.
    12. Svanberg, Jan & Öhman, Peter & Neidermeyer, Presha E., 2019. "Auditor objectivity as a function of auditor negotiation self-efficacy beliefs," Advances in accounting, Elsevier, vol. 44(C), pages 121-131.
    13. Uhm, Jun-Phil & Kim, Sanghoon & Do, Chanwook & Lee, Hyun-Woo, 2022. "How augmented reality (AR) experience affects purchase intention in sport E-commerce: Roles of perceived diagnosticity, psychological distance, and perceived risks," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    14. Krista Fiolleau & Kris Hoang & Karim Jamal & Shyam Sunder, 2013. "How Do Regulatory Reforms to Enhance Auditor Independence Work in Practice?," Contemporary Accounting Research, John Wiley & Sons, vol. 30(3), pages 864-890, September.
    15. Matringe, Nadia & Power, Michael, 2024. "Memories lost: a history of accounting records as forms of projection," LSE Research Online Documents on Economics 120410, London School of Economics and Political Science, LSE Library.
    16. Yu, Wantao & Wong, Chee Yew & Chavez, Roberto & Jacobs, Mark A., 2021. "Integrating big data analytics into supply chain finance: The roles of information processing and data-driven culture," International Journal of Production Economics, Elsevier, vol. 236(C).
    17. Nadeem, Waqar & Tan, Teck Ming & Tajvidi, Mina & Hajli, Nick, 2021. "How do experiences enhance brand relationship performance and value co-creation in social commerce? The role of consumer engagement and self brand-connection," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    18. Blaufus, Kay & Lorenz, Daniela & Milde, Michael & Peuthert, Benjamin & Schwäbe, Alexander N., 2022. "Negotiating with the tax auditor: Determinants of tax auditors' negotiation strategy choice and the effect on firms’ tax adjustments," Accounting, Organizations and Society, Elsevier, vol. 97(C).
    19. Ji Hee Song & Candice R. Hollenbeck, 2015. "The value of social presence in mobile communications," The Service Industries Journal, Taylor & Francis Journals, vol. 35(11-12), pages 611-632, August.
    20. Söderlund, Magnus, 2023. "Service robot verbalization in service processes with moral implications and its impact on satisfaction," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    21. Gwenaëlle Nogatchewsky & Samuel Sponem, 2002. "L'Utilisation De L'E-Mail Dans Le Controle Organisationnel : Le Cas De La Relation Superieur - Subordonne," Post-Print halshs-00584516, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:aosoci:v:65:y:2018:i:c:p:33-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/aos .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.