The effect of client gender and negotiation style on auditors' proposed audit adjustments

Jennifer Hamrick, Jennifer Schafer and Todd DeZoort

Advances in accounting, 2023, vol. 62, issue C

Abstract: This study examines whether client gender affects the efficacy of two common negotiation strategies used by management when disputing a proposed audit adjustment. Eighty-two experienced auditors participated in an experiment in which CFO gender (female or male) and negotiation style (concessionary or contentious) were manipulated randomly between subjects. The results provide evidence of a gender-by-negotiation strategy interaction. Specifically, auditors are less likely to propose an audit adjustment for a male CFO who uses a contentious negotiation strategy as compared to the concessionary strategy. Conversely, auditors are more likely to propose an audit adjustment for a female CFO who uses a contentious negotiation strategy as compared to a male CFO who uses this same strategy. These findings indicate that the use of pressure-related tactics in negotiation is beneficial for male CFOs, but that female CFOs are penalized (as compared to male CFOs) for using contentious tactics.

Keywords: Gender; Negotiation; Source credibility; Judgment and decision-making; Bias (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:62:y:2023:i:c:s0882611023000196

DOI: 10.1016/j.adiac.2023.100660

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