The Auditor's Negotiation Strategy Selection: Nature of the Auditor-Client Management Relationship and Flexibility of Initial Accounting Position

The auditor's initial negotiation strategy and tactics choice determines how the upcoming negotiation is approached, carried out and potentially the eventual outcome. We experimentally examine two factors key to the auditor's initial formulation of his/her negotiation strategy: the nature of the auditor-client management relationship and the auditor's initial assessment of client management's flexibility in its accounting position. We posit …