Resolving Disputed Financial Reporting Issues: Effects of Auditor Negotiation Experience and Engagement Risk on Negotiation Process and Outcome

2009 ◽  
Vol 28 (2) ◽  
pp. 65-92 ◽  
Author(s):  
Helen L. Brown ◽  
Karla M. Johnstone
Keyword(s):  
High Risk ◽  
Financial Reporting ◽  
Negotiation Process ◽  
Negotiation Strategy ◽  
Process And Outcome ◽  
Dyadic Negotiation ◽  
Aggressive Financial Reporting

SUMMARY: In an experiment involving a dyadic negotiation between a computer-simulated client and practicing auditors, we examine the effects of engagement risk and auditor negotiation experience on the process and outcomes of client-auditor negotiations. We find that auditors with lower negotiation experience who encounter a high risk client use a more concessionary negotiation strategy, achieve a negotiated outcome that is more aggressive (consistent with the client's aggressive preference), and are less confident that the outcome they negotiate is acceptable under GAAP compared with the negotiation process and outcome results of auditors with higher negotiation experience. In contrast, auditors with higher negotiation experience use a less concessionary strategy, achieve an outcome that is more conservative regardless of risk context, and are more confident that the outcome they negotiate is acceptable under GAAP. This study illustrates the important roles that engagement risk, task-specific negotiation experience, and pressure from the client regarding an aggressive financial reporting preference play in the process and outcomes of client-auditor negotiation.

Negotiating Indigenous Peoples’ Exit From Colonialism: The Case for an Integrative Approach

2014 ◽  
Vol 27 (1) ◽  
pp. 283-303
Author(s):  
Michael Coyle
Keyword(s):  
Indigenous Peoples ◽  
Negotiation Process ◽  
Integrative Approach ◽  
Negotiation Strategy ◽  
Negotiation Strategies ◽  
Integrative Negotiation ◽  
Process And Outcome ◽  
Indigenous Governance ◽  
New Institutions

New institutions of indigenous governance will be the product of negotiations, negotiations that will take place against a background of colonial structures and relationships. Having examined the challenges of structuring a negotiation process that takes due account of pre-existing cultural and power differences between the parties, the author analyzes the significance of their choice of negotiation strategy on the negotiation process and outcome. In particular, this paper reflects on the promise and limitations of the parties’ adopting interest-based, or “integrative”, negotiation strategies and the potential for fruitful entanglements between those strategies and indigenous diplomatic traditions.

Harmonization of the human resource audit in the field of international practice

2020 ◽  
pp. 25-32
Author(s):  
N.S. Bieliaieva
Keyword(s):  
High Risk ◽  
Human Resource ◽  
Financial Reporting ◽  
Workforce Planning ◽  
Global Scale ◽  
Management Control ◽  
Audit Risk ◽  
Service Contracts ◽  
Medium Risk ◽  
Talent Acquisition

The article explores the possibilities and problems of the process of harmonization of the HR audit in the field of international practice, taking into account the specifics of the market environment of Ukraine. The views of different authors on the problem of HR auditing were investigated. The idea was justified that the harmonization of accounting and financial reporting of economic entities is closely linked with the globalization of economic processes and the economy as a whole on a global scale, the processes of informatisation and digitalization of society, the same as for HR processes. During considering the concept of “HR audit” it should not be forgetting about the legislative component — HR audit is aimed, inter alia, at identifying violations with the law for timely management of weaknesses in the policy of the enterprise in the field of labor. Categorization of observations by impact of importance (high-risk, medium-risk, low-risk — categorization) was investigated; examples for high-risk observations (on the example of: workforce planning, service contract modalities) and medium-risk (on the example of: recruitment process governance, alignment of strategy and work plans, HR functional capacity in Country Offices, talent acquisition in Cos, recruitment processes in Cos, employee on-boarding, training and separation, national non-staff salary scales and pay adjustments, staffing and structure review exercises, social security transfers to service contracts, automation, information and data management, oversight of HR functions in Cos) are given in consideration with agreed actions of HRM and auditor. The ratings (satisfactory, partially satisfactory or unsatisfactory) of an HR audit that are part of the system of evaluating the adequacy of company’s audit risk management, control and governance processes were investigated. The point that the human resource auditing is something that many companies do annually, just as they audit their financial information (despite of their field of activity) is overlined in the article. The harmonization of the HR audit in the field of international practice is a process of unification of methods and principles of auditing in the form of standards is observed.

scholarly journals The Attenuating Effect of Intelligent Agents and Agent Autonomy on Managers' Ability to Diffuse Responsibility for and Engage in Earnings Management

2020 ◽  
Vol 34 (4) ◽  
pp. 143-164
Author(s):  
Peter C. Kipp ◽  
Mary B. Curtis ◽  
Ziyin Li
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Intelligent Agents ◽  
Autonomous Agents ◽  
Ethical Conduct ◽  
Human Agent ◽  
Perception Of Control ◽  
Reporting Decisions ◽  
Aggressive Financial Reporting

SYNOPSIS Advances in IT suggest that computerized intelligent agents (IAs) may soon occupy many roles that presently employ human agents. A significant concern is the ethical conduct of those who use IAs, including their possible utilization by managers to engage in earnings management. We investigate how financial reporting decisions are affected when they are supported by the work of an IA versus a human agent, with varying autonomy. In an experiment with experienced managers, we vary agent type (human versus IA) and autonomy (more versus less), finding that managers engage in less aggressive financial reporting decisions with IAs than with human agents, and engage in less aggressive reporting decisions with less autonomous agents than with more autonomous agents. Managers' perception of control over their agent and ability to diffuse their own responsibility for financial reporting decisions explain the effect of agent type and autonomy on managers' financial reporting decisions.

The Meaning of Intuition for the Negotiation Process and Outcome

2020 ◽  
Vol 36 (3) ◽  
pp. 309-329
Author(s):  
Peter Kesting ◽  
Rasmus Kjærsgaard Nielsen
Keyword(s):  
Negotiation Process ◽  
Process And Outcome

Factors affecting desire to negotiate again

2017 ◽  
Vol 32 (1) ◽  
pp. 16-29 ◽  
Author(s):  
Denise Fleck ◽  
Roger Volkema ◽  
Sergio Pereira ◽  
Lara Vaccari
Keyword(s):  
Outcome Measures ◽  
Design Methodology ◽  
Negotiation Process ◽  
Content Type ◽  
Factors Affecting ◽  
Negatively Associated ◽  
Process And Outcome ◽  
The Mean ◽  
Personality Process ◽  
E Mail

Purpose The purpose of this paper is to investigate the effects of negotiation process and outcome on an individual’s desire to negotiate again with the same counterpart. Design/methodology/approach Data were collected from 115 dyads representing two companies negotiating an eight-issue property leasing agreement via e-mail. Desire to negotiate again was regressed on demographic/personality, process, and outcome measures. Findings Reaching an agreement was found to be significantly related to desire to negotiate again, while the number of messages exchanged and the mean number of competitive tactics employed were positively and negatively associated with reaching an agreement, respectively. Further, perceived honesty of self and counterpart were also associated with an individual’s desire to negotiate again. Originality/value This study focuses on an aspect of real negotiations often overlooked by researchers – the likelihood of future encounters with the same party – and examines three categories of factors that could affect a party’s desire to negotiate with a counterpart again – demographic/personality, process, and outcome (actual and perceived).

Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting

2009 ◽  
Vol 84 (2) ◽  
pp. 467-496 ◽  
Author(s):  
Mary Margaret Frank ◽  
Luann J. Lynch ◽  
Sonja Olhoft Rego
Keyword(s):  
Stock Returns ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Tax Law ◽  
Reporting Incentives ◽  
Reporting Behaviors ◽  
Aggressive Financial Reporting ◽  
Tax Reporting ◽  
Better Than

ABSTRACT: We investigate the association between aggressive tax and financial reporting and find a strong, positive relation. Our results suggest that insufficient costs exist to offset financial and tax reporting incentives, such that nonconformity between financial accounting standards and tax law allows firms to manage book income upward and taxable income downward in the same reporting period. To examine the relation between these aggressive reporting behaviors, we develop a measure of tax reporting aggressiveness that statistically detects tax shelter activity at least as well as, and often better than, other measures. In supplemental stock returns analyses, we confirm that the market overprices financial reporting aggressiveness. We also find that the market overprices tax reporting aggressiveness, but only for firms with the most aggressive financial reporting.

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