Home > Research > Publications & Outputs > Behind the audit report

Research

Links

Text available via DOI:

Keywords

View graph of relations

Behind the audit report: a descriptive study of discussion and negotiation between auditors and directors

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published

Standard

Behind the audit report: a descriptive study of discussion and negotiation between auditors and directors. / Beattie, Vivien; Fearnley, Stella; Brandt, Richard.
In: International Journal of Auditing, Vol. 4, No. 2, 07.2000, p. 177-202.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Beattie, V, Fearnley, S & Brandt, R 2000, 'Behind the audit report: a descriptive study of discussion and negotiation between auditors and directors', International Journal of Auditing, vol. 4, no. 2, pp. 177-202. https://doi.org/10.1111/1099-1123.00312

APA

Beattie, V., Fearnley, S., & Brandt, R. (2000). Behind the audit report: a descriptive study of discussion and negotiation between auditors and directors. International Journal of Auditing, 4(2), 177-202. https://doi.org/10.1111/1099-1123.00312

Vancouver

Beattie V, Fearnley S, Brandt R. Behind the audit report: a descriptive study of discussion and negotiation between auditors and directors. International Journal of Auditing. 2000 Jul;4(2):177-202. doi: 10.1111/1099-1123.00312

Author

Beattie, Vivien ; Fearnley, Stella ; Brandt, Richard. / Behind the audit report : a descriptive study of discussion and negotiation between auditors and directors. In: International Journal of Auditing. 2000 ; Vol. 4, No. 2. pp. 177-202.

Bibtex

@article{2d3dc09e10434eca9fe21783dd43fb39,
title = "Behind the audit report: a descriptive study of discussion and negotiation between auditors and directors",
abstract = "This paper presents direct evidence concerning the extent, nature, and outcome of interactions between the two primary parties in the auditor-client relationship — finance directors (FDs) and audit engagement partners (AEPs). A questionnaire instrument is used to elicit the frequency with which, over a three year period, an extensive set of 46 audit and audit-related issues is discussed, is negotiated, and results in a change to either the accounting numbers or disclosures. Three hundred FDs and 307 AEPs of listed UK companies are surveyed, with response rates of 51% and 80%, respectively. Principal findings are that: (i) compliance issues dominate discussions, while accounting and fee issues dominate negotiations; (ii) audit committees generally reduce the level of negotiation and increase the level of discussion, suggesting that the overall degree of confrontation declines; and (iii) in the majority of cases (57%), negotiation results in a change to the financial statements, providing evidence of the auditor's influence on the financial statements.",
keywords = "audit, audit committees, audit process, conflict, discussion, interaction, negotiation, relationship",
author = "Vivien Beattie and Stella Fearnley and Richard Brandt",
year = "2000",
month = jul,
doi = "10.1111/1099-1123.00312",
language = "English",
volume = "4",
pages = "177--202",
journal = "International Journal of Auditing",
issn = "1090-6738",
publisher = "John Wiley and Sons Ltd",
number = "2",

}

RIS

TY - JOUR

T1 - Behind the audit report

T2 - a descriptive study of discussion and negotiation between auditors and directors

AU - Beattie, Vivien

AU - Fearnley, Stella

AU - Brandt, Richard

PY - 2000/7

Y1 - 2000/7

N2 - This paper presents direct evidence concerning the extent, nature, and outcome of interactions between the two primary parties in the auditor-client relationship — finance directors (FDs) and audit engagement partners (AEPs). A questionnaire instrument is used to elicit the frequency with which, over a three year period, an extensive set of 46 audit and audit-related issues is discussed, is negotiated, and results in a change to either the accounting numbers or disclosures. Three hundred FDs and 307 AEPs of listed UK companies are surveyed, with response rates of 51% and 80%, respectively. Principal findings are that: (i) compliance issues dominate discussions, while accounting and fee issues dominate negotiations; (ii) audit committees generally reduce the level of negotiation and increase the level of discussion, suggesting that the overall degree of confrontation declines; and (iii) in the majority of cases (57%), negotiation results in a change to the financial statements, providing evidence of the auditor's influence on the financial statements.

AB - This paper presents direct evidence concerning the extent, nature, and outcome of interactions between the two primary parties in the auditor-client relationship — finance directors (FDs) and audit engagement partners (AEPs). A questionnaire instrument is used to elicit the frequency with which, over a three year period, an extensive set of 46 audit and audit-related issues is discussed, is negotiated, and results in a change to either the accounting numbers or disclosures. Three hundred FDs and 307 AEPs of listed UK companies are surveyed, with response rates of 51% and 80%, respectively. Principal findings are that: (i) compliance issues dominate discussions, while accounting and fee issues dominate negotiations; (ii) audit committees generally reduce the level of negotiation and increase the level of discussion, suggesting that the overall degree of confrontation declines; and (iii) in the majority of cases (57%), negotiation results in a change to the financial statements, providing evidence of the auditor's influence on the financial statements.

KW - audit

KW - audit committees

KW - audit process

KW - conflict

KW - discussion

KW - interaction

KW - negotiation

KW - relationship

U2 - 10.1111/1099-1123.00312

DO - 10.1111/1099-1123.00312

M3 - Journal article

VL - 4

SP - 177

EP - 202

JO - International Journal of Auditing

JF - International Journal of Auditing

SN - 1090-6738

IS - 2

ER -