New evidence on drivers influencing negotiation between financial auditors and their clients concerning resolution on the audit opinion. The case of an emerging economy

Valentin Burca (), Anca Balan, Ovidiu-Constantin Bunget, Alin-Constantin Dumitrescu and Cristian Lungu
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Valentin Burca: West University of Timisoara
Anca Balan: West University of Timisoara
Ovidiu-Constantin Bunget: West University of Timisoara
Alin-Constantin Dumitrescu: West University of Timisoara
Cristian Lungu: West University of Timisoara

E&M Economics and Management, 2025, vol. 28, issue 2, 141-164

Abstract: Controversies concerning the main drivers of the auditor-client relationship have been discussed over time, although interest in this topic appears to have slightly declined, with recent studies mainly addressing auditors’ competencies, independence, audit fees and quality of audit services. However, the current business environment shows significant concerns on the high level of economic uncertainty, and complexity of business models, even though auditors have shown interest in adopting emerging technologies. Within this VUCA-BANI framework, auditors are pushed to reconsider the implications of those transformations into their own capabilities, in order to provide adequate solutions to their customers. Instead, the auditor-client relationship does not relate only to discussion on the area of enhancing clients’ or auditors’ dynamic capabilities to become more resilient, and to ensure competitive audit fees, but also to a continuous communication process that influences the outcome of each assurance engagement, many times depending on a negotiation process aimed to limit auditors’ liability and increase clients’ satisfaction. The purpose of this study is to investigate the main drivers influencing financial auditors’ choice for different negotiation strategies used during reconciliation meetings with clients. The research is based on a survey disseminated through active financial auditors from Romania. Following a robust theoretical framework, including the client-auditor negotiation dynamic theory, the research design consists of multivariate data analysis. This paper adds insights into the literature, on a topic that is mainly discussed in research settings consisting of highly developed economies, neglecting the specifics of emerging economies. The study aims to provide insights on drivers of auditors’ choice for negotiation strategies and related tactics in the stage of meetings of reconciliation with clients. Research results indicate that the auditors’ position of negotiation is significantly influenced by client pressure and the quality of the auditor-client relationship.

Keywords: Auditor-client relationship; power of negotiation; distributive negotiation strategies; integrative negotiation strategies; going concern (search for similar items in EconPapers)
JEL-codes: G34 H83 M41 M42 (search for similar items in EconPapers)
Date: 2025
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https://doi.org/10.15240/tul/001/2025-2-009

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Persistent link: https://EconPapers.repec.org/RePEc:bbl:journl:v:28:y:2025:i:2:p:141-164

DOI: 10.15240/tul/001/2025-2-009

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