IDEAS home Printed from https://ideas.repec.org/a/eee/jiaata/v47y2022ics1061951822000234.html
   My bibliography  Save this article

Auditors’ self-actualization and ability to resist client pressure: Evidence from Canada

Author

Listed:
  • Papirakis, Rachel

Abstract

This paper investigates the relationship between auditors’ self-actualization, their commitment to independence, and their resistance to client pressure in a situation involving auditor-client negotiation. This is the first study to examine auditor self-actualization in an auditor-client negotiation context. It is based on a mail survey of Canadian Big Four audit partners with a final sample of 136 partners. The results show a relationship between auditors’ self-actualization, their independence commitment, and their resistance to client pressure. This study contributes to the literature by identifying the mediating role of auditor independence commitment in the relationship between auditor self-actualization and auditor resistance to client pressure. These findings may encourage audit firms to find ways to improve employee self-actualization through better work conditions and work-life balance. The study also finds that auditors have a strong commitment to independence.

Suggested Citation

  • Papirakis, Rachel, 2022. "Auditors’ self-actualization and ability to resist client pressure: Evidence from Canada," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 47(C).
    • Handle: RePEc:eee:jiaata:v:47:y:2022:i:c:s1061951822000234
    DOI: 10.1016/j.intaccaudtax.2022.100468
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1061951822000234
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intaccaudtax.2022.100468?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. Aranya, Nissim & Lachman, Ran & Amernic, Joel, 1982. "Accountants' job satisfaction: A path analysis," Accounting, Organizations and Society, Elsevier, vol. 7(3), pages 201-215, July.
    2. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    3. Jan Svanberg & Peter Öhman & Presha E. Neidermeyer, 2018. "Client-identified auditor’s initial negotiation tactics: a social-identity perspective," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 33(6/7), pages 633-654, July.
    4. Allen D. Blay, 2005. "Independence Threats, Litigation Risk, and the Auditor's Decision Process," Contemporary Accounting Research, John Wiley & Sons, vol. 22(4), pages 759-789, December.
    5. Steven E. Salterio, 2012. "Fifteen years in the trenches: Auditor–client negotiations exposed and explored," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 52, pages 233-286, October.
    6. William L. Felix & Audrey A. Gramling & Mario J. Maletta, 2005. "The Influence of Nonaudit Service Revenues and Client Pressure on External Auditors' Decisions to Rely on Internal Audit," Contemporary Accounting Research, John Wiley & Sons, vol. 22(1), pages 31-53, March.
    7. Meuwissen, Roger & Quick, Reiner, 2019. "The effects of non-audit services on auditor independence: An experimental investigation of supervisory board members’ perceptions," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 36(C), pages 1-1.
    8. Strawser, Rh & Ivancevich, Jm & Lyon, Hl, 1969. "Note On Job Satisfaction Of Accountants In Large And Small Cpa Firms," Journal of Accounting Research, Wiley Blackwell, vol. 7(2), pages 339-345.
    9. Denis Cormier & Pascale Lapointe-Antunes, 2006. "The auditor's assessment and detection of corporate fraud: some Canadian evidence," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 3(2), pages 133-165.
    10. Windsor, Carolyn A. & Ashkanasy, Neal M., 1995. "The effect of client management bargaining power, moral reasoning development, and belief in a just world on auditor independence," Accounting, Organizations and Society, Elsevier, vol. 20(7-8), pages 701-720.
    11. Quick, Reiner & Meuwissen, R., 2019. "The Effects on Non-Audit Services on Auditor Independence: An Experimental Investigation of Supervisory Board Members’ Perceptions," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 119046, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    12. Karen Wilken Braun, 2001. "The Disposition of Audit†Detected Misstatements: An Examination of Risk and Reward Factors and Aggregation Effects," Contemporary Accounting Research, John Wiley & Sons, vol. 18(1), pages 71-99, March.
    13. Helen Brown-Liburd & Jeffrey Cohen & Greg Trompeter, 2013. "Effects of Earnings Forecasts and Heightened Professional Skepticism on the Outcomes of Client–Auditor Negotiation," Journal of Business Ethics, Springer, vol. 116(2), pages 311-325, August.
    14. Iyer, Rajesh & Muncy, James A., 2009. "Purpose and object of anti-consumption," Journal of Business Research, Elsevier, vol. 62(2), pages 160-168, February.
    15. Murtaza, Niaz, 2011. "Pursuing self-interest or self-actualization? From capitalism to a steady-state, wisdom economy," Ecological Economics, Elsevier, vol. 70(4), pages 577-584, February.
    16. Zaini Ahmad & Dennis Taylor, 2009. "Commitment to independence by internal auditors: the effects of role ambiguity and role conflict," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(9), pages 899-925, October.
    17. 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.
    18. Michael Gibbins & Steven Salterio & Alan Webb, 2001. "Evidence About Auditor–Client Management Negotiation Concerning Client’s Financial Reporting," Journal of Accounting Research, Wiley Blackwell, vol. 39(3), pages 535-563, December.
    19. Mohammad Abdolmohammadi & C. Baker, 2006. "Accountants’ Value Preferences and Moral Reasoning," Journal of Business Ethics, Springer, vol. 69(1), pages 11-25, November.
    20. Guiral, Andres & Rodgers, Waymond & Ruiz, Emiliano & Gonzalo-Angulo, Jose A., 2015. "Can expertise mitigate auditors’ unintentional biases?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 105-117.
    21. Diana Larisa Tampu, 2015. "Human motivation and corporate governance," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 4(2), pages 177-193.
    Full references (including those not matched with items on IDEAS)

    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. Knechel, W. Robert & Thomas, Edward & Driskill, Matthew, 2020. "Understanding financial auditing from a service perspective," Accounting, Organizations and Society, Elsevier, vol. 81(C).
    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. Melinda Timea FULOP & Nicolae MAGDAS & George Silviu CORDOS, 2019. "Theoretical Background Of Internal And External Environment Of Negotiation," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(21), pages 1-3.
    4. Wening Estiningsih & Juni Mashita & Sidik Lestiyono, 2019. "The Effect of Perception on the Benefits of Tax toward the Discipline of Paying Taxes in Jakarta," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 8(3), pages 16-21, September.
    5. Koch, Christopher & Weber, Martin & Wüstemann, Jens, 2007. "Can auditors be independent? : Experimental evidence," Papers 07-59, Sonderforschungsbreich 504.
    6. Richard C. Hatfield & Christopher P. Agoglia & Maria H. Sanchez, 2008. "Client Characteristics and the Negotiation Tactics of Auditors: Implications for Financial Reporting," Journal of Accounting Research, Wiley Blackwell, vol. 46(5), pages 1183-1207, December.
    7. Boyle, Erik S., 2024. "How do auditors’ use of industry norms differentially impact management evaluations of audit quality under principles-based and rules-based accounting standards?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 54(C).
    8. Marco Angelo Marinoni & Anna Maria Fellegara & Andrea Lippi, 2022. "Potential Threats to Audit Firm Independence: Evidence from Italy on Audit Quality," International Business Research, Canadian Center of Science and Education, vol. 15(6), pages 1-88, June.
    9. Jian Cao & Feng Chen & Julia L. Higgs, 2016. "Late for a very important date: financial reporting and audit implications of late 10-K filings," Review of Accounting Studies, Springer, vol. 21(2), pages 633-671, June.
    10. Hamrick, Jennifer & Schafer, Jennifer & DeZoort, Todd, 2023. "The effect of client gender and negotiation style on auditors' proposed audit adjustments," Advances in accounting, Elsevier, vol. 62(C).
    11. Yan Luo & Steven E. Salterio, 2021. "Toward an Archival Measure of the Likelihood of Auditor‐Client Management Negotiation: An Exploration of the Audit Lag Measures Conjecture†," Accounting Perspectives, John Wiley & Sons, vol. 20(1), pages 109-143, March.
    12. Laurence Daoust & Bertrand Malsch, 2020. "When the Client Is A Former Auditor: Auditees' Expert Knowledge and Social Capital as Threats to Staff Auditors' Operational Independence†," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1333-1369, September.
    13. Preeti Choudhary & Kenneth Merkley & Katherine Schipper, 2022. "The Costs of Waiving Audit Adjustments," Journal of Accounting Research, Wiley Blackwell, vol. 60(5), pages 1813-1857, December.
    14. Gultom, Juan Barus & Murwaningsari, Etty & Umar, Haryono & Mayangsari, Sekar, 2021. "Reciprocal Use of Artificial Intelligence in Audit Assignments," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 11(1), pages 9-20.
    15. Julia Baldauf & Marcel Steller & Rudolf Steckel, 2015. "The Influence of Audit Risk and Materiality Guidelines on Auditors’ Planning Materiality Assessment," Accounting and Finance Research, Sciedu Press, vol. 4(4), pages 1-97, November.
    16. Douthit, Jeremy D. & Kachelmeier, Steven J. & Van Landuyt, Ben W., 2024. "Does auditor assurance of client prosocial activities affect subsequent reporter-auditor negotiations?," Accounting, Organizations and Society, Elsevier, vol. 112(C).
    17. Reshma Kumari Tiwari & Jasojit Debnath, 2021. "Joint Provision of Non-audit Services to Audit Clients: Empirical Evidences from India," Vikalpa: The Journal for Decision Makers, , vol. 46(3), pages 153-165, September.
    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. Van Landuyt, Ben W., 2021. "Does emphasizing management bias decrease auditors’ sensitivity to measurement imprecision?," Accounting, Organizations and Society, Elsevier, vol. 88(C).
    20. Cassandra Estep & Emily E. Griffith & Nikki L. MacKenzie, 2024. "How do financial executives respond to the use of artificial intelligence in financial reporting and auditing?," Review of Accounting Studies, Springer, vol. 29(3), pages 2798-2831, September.

    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:jiaata:v:47:y:2022:i:c:s1061951822000234. 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: https://www.journals.elsevier.com/journal-of-international-accounting-auditing-and-taxation .

    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.