Auditor Tactics in Negotiations: A Research Note

13 Pages Posted: 13 Oct 2011

See all articles by Janice Hollindale

Janice Hollindale

Bond University - Bond Business School

Pamela Kent

University of Queensland - Business School

Ray McNamara

James Cook University, College of Business Law & Governance

Date Written: November 2011

Abstract

This study provides a broad set of tactics identified and used by mediation experts widely cited in the psychology literature. Seven auditing partners are provided with this broad list of tactics and asked to apply these tactics to two examples of an audit judgment setting. Another group of auditors consisting of 11 partners and 11 managers identify the degree of importance they plan to place on these 38 adapted tactics in the same audit judgment setting. Factor analysis is used to group the tactics into dimensions and it is found that there are four underlying factors. These are contending (forcing/asserting), compromising, problem solving and accommodating. The 22 auditors also manually sort the tactics into groups of homogeneous tactics, and cluster analysis indicates four factors of appealing to authority, forcing/asserting, context setting and facilitating. These groupings from the factor analysis and auditors' sorting are broadly consistent with previous research. Little difference is observed between partners and managers' assessment of the importance of the tactics, while auditors with formal negotiation training place less emphasis on compromising tactics than those without training.

Keywords: audit negotiation, psychological characteristics, external audit

Suggested Citation

Hollindale, Janice and Kent, Pamela and McNamara, Ray, Auditor Tactics in Negotiations: A Research Note (November 2011). International Journal of Auditing, Vol. 15, Issue 3, pp. 288-300, 2011, Available at SSRN: https://ssrn.com/abstract=1943330 or http://dx.doi.org/10.1111/j.1099-1123.2011.00435.x

Janice Hollindale

Bond University - Bond Business School ( email )

Gold Coast
Australia

Pamela Kent

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia
+016 7 3365 6611 (Phone)
+016 7 3365 6788 (Fax)

Ray McNamara

James Cook University, College of Business Law & Governance ( email )

James Cook Drive
Douglas
Townsville, QLD 4810
Australia
+61 7 43733355 (Phone)

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