Faithin Omaha eBook Collection

Download or read book The Effects of Auditor-client Relationships, Auditor-auditor Relationships, and Persuasive Communication on Auditor's Objectivity written by Nicole Renee McCoy and published by . This book was released on 2010 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditors are subjected to various affective states during a financial examination and these affective states influence how auditors retrieve, encode, and process audit observations and client representations. This study investigated the relationship between the affective states induced by auditors' interpersonal relationships and the auditors' judgments and assessed whether or not any one of these interpersonal relationships has more influence on auditors' decisions than any other interpersonal relationships. The audit review process should decrease the adverse impact of these affective states on audit judgment; however, the audit manager's review judgments may incorporate his/her subordinate judgments that are communicated via stylized workpapers. As predicated, the affective states induced by the client relationship and the partner's expectations collectively impaired audit judgment and when persuasive communication from a subordinate team member was evaluated with the affective states induced by the client relationship and the partner's expectations, a statistically significant three-way interaction was found. The affective states induced by the client relationship consistently influenced audit judgments for both the less experienced auditor and the more experienced auditor.