Resolving Audit Engagement Challenges through Communication
Abbreviated Journal Title
Audit.-J. Pract. Theory
challenge resolution; auditor-client interaction; auditor communication; NEGOTIATION; PERFORMANCE; CONCESSIONS; JUDGMENT; ROTATION; PARTNER; QUALITY; Business, Finance
This paper investigates the successful resolution of audit challenges faced by auditing professionals. We use an experiential questionnaire (EQ) (Gibbins and Qu 2005) to elicit practicing auditors' experiences with resolving challenges personally encountered on an audit engagement. One hundred ninety-seven auditing professionals from all levels (staff to partners) and firm types (local to Big 4) responded to our EQ, and 130 provided complete information about a self-identified challenge they had encountered. Over 70 percent of these challenges were successfully resolved wherein communication with other auditors on the engagement, along with communication with the client, aided most in the resolution process. These results provide evidence confirming theory-based research indicating the importance of knowledge sharing for CPAs (Vera-Munoz et al. 2006). Our findings also extend prior research on the components of professional judgment (Gibbins and Emby 1985; Emby and Gibbins 1988; Gibbins and Mason 1988) by providing insight into the potentially troublesome area of challenges that are often encountered during an audit, and how effective communication can lead to successful resolution of such challenges.
Auditing-a Journal of Practice & Theory
"Resolving Audit Engagement Challenges through Communication" (2012). Faculty Bibliography 2010s. 2313.