The Effects of Personal and Group Level Factors on the Outcomes of Simulated Auditor-Client Teams

Group Decisions and Negotiations, 12: 57-84, 2003

Pace University Accounting Research Paper No. 2013/06

Posted: 28 Nov 2013

See all articles by Gary Kleinman

Gary Kleinman

Montclair State University

Dan Palmon

Rutgers, The State University of New Jersey - Accounting & Information Systems

Picheng Lee

Pace University - Department of Accounting

Date Written: 2003

Abstract

The way that auditors and their clients develop team resources that they can later use in negotiating with their counterparts is a critical but unexplored issue in auditing research. This study explores several important issues that may affect the development of these team resources. Specifically, it uses interacting groups to evaluate the dynamic interplay between personal and perceived group level factors in determining individual team member's satisfaction with the teams' solution, and the development of perceptions of the team's atmosphere. First, a model of the intra-person and intra-team decision processes is introduced. This model posits that individual's personalities and hierarchical levels influence their choice of conflict styles, the development of their perceptions of the team's atmosphere, and ultimately their satisfaction with the solution reached by the team. Conflict style also is posited to affect perceptions of the team's atmosphere and solution satisfaction. We then test the model using structural equation modeling. We also examine the development of consensus within the teams. Students working on their MBA and MS in Business and Accounting at two AACSB-accredited universities participated in this study. The results provide dramatic evidence of the influence of the factors of interest on the resources that each team brings to the ultimate negotiation with its counterpart team.

Keywords: auditor, client, negotiation, group, group decision-making,personality, conflict style

JEL Classification: M40, M42

Suggested Citation

Kleinman, Gary and Palmon, Dan and Lee, Picheng, The Effects of Personal and Group Level Factors on the Outcomes of Simulated Auditor-Client Teams (2003). Group Decisions and Negotiations, 12: 57-84, 2003; Pace University Accounting Research Paper No. 2013/06. Available at SSRN: https://ssrn.com/abstract=2360816

Gary Kleinman (Contact Author)

Montclair State University ( email )

NJ 07043
United States

Dan Palmon

Rutgers, The State University of New Jersey - Accounting & Information Systems ( email )

96 New England Avenue, #18
Summit, NJ 07901-1825
United States
201-648-5472 (Phone)
201-648-1283 (Fax)

Picheng Lee

Pace University - Department of Accounting ( email )

1 Pace Plaza
New York, NY 10038-1502
United States

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