Effects of Qualitative Factor Salience, Expressed Client Concern, and Qualitative Materiality Thresholds on Auditors' Audit Adjustment Decisions*

@inproceedings{Ng2007EffectsOQ,
  title={Effects of Qualitative Factor Salience, Expressed Client Concern, and Qualitative Materiality Thresholds on Auditors' Audit Adjustment Decisions*},
  author={Terence Bu‐Peow Ng and Hun-Tong Tan},
  year={2007}
}
We conduct an experiment to provide evidence on factors that influence auditors' propensity to book or waive audit differences that affect the client's ability to meet the analysts' consensus forecast and avoid a negative earnings surprise. Results indicate that increasing the salience of a qualitative materiality factor (by highlighting the audit difference's impact on the client's ability to meet the analysts' consensus forecast) increases auditors' propensity to book the audit difference… CONTINUE READING