Explicating the Interactions between the Auditor and Client Management during the Audit Process: Implications for Corporate Governance

between auditors and client management during the audit process, and the consequent impact on the effectiveness of corporate governance structures in place. A total of 28 semi-structured interviews were carried out in 8 different sized Egyptian accounting firms. The semi-structured interviews were
facilitated by the use of a pre-designed interview schedule using a very broad topic guide with a few direct questions. The interviewees’ responses revealed that it is important for the auditor not only to assess the nature of the given dispute and the stage to which the dispute has evolved, but also to assess the forces and factors affecting the parties involved. Secondly, when resolving audit disputes, interviewees indicated that there is no single negotiation
strategy that can be applied in all situations. The findings should be treated
with some caution since the interviews were conducted with only one group of subjects, namely 28 Egyptian auditors of Big 4 and other audit firms. Accordingly, the issue remains open as to whether the interviewees’
perceptions can be generalized to the whole population or to other groups (for instance, finance directors or shareholders). Most of the previous studies have been conducted in developed, Anglo-Saxon countries, therefore there is an opportunity for more research to be carried out in other countries, specifically in developing countries, namely Egypt, thus providing additional evidence on
this issue.

Citation:
Awadallah, E (August-September 2008), 'Explicating the Interactions between the Auditor and Client Management during the Audit Process: Implications for Corporate Governance' International Review of Business Research Papers, 4 (4), 75-82.