DEVELOPING A CONCEPTUAL MODEL FRAMEWORK ON SETTING
       NEGOTIATION STRATEGIES IN AUDIT DECISION-MAKING
                         PROCESSES


                    Anca Diana SUMĂNARU1, ORCID: 0000-0002-4921-5147


Abstract: Motivational factors and bargaining power are considered important elements for
negotiation strategies by scholars and academics. However, there is few evidence up to date on
the effect of these factors in the context of auditor client negotiation while adopting a decision
making process framework. Therefore, the objective of this paper is to presents a Conceptual
Model Framework that describes the decision-making process of auditors in terms of negotiation
strategies. The research methodology involves the application of a thoughtful model that contains
the the following elements: (a) perception motivational factors, and (b) bargaining power affecting
the choice of negotiation strategy, and also identifies different pathways auditors use in their
decision about negotiation strategies. Results show that only engagement risk perception
influences the auditor to accept aggressive accounting treatments of the client. Further, it
influences the use of all the negotiation strategies. On the other hand, client pressure has effect on
compromising strategies, while bargaining power influences the concessionary strategy of
auditors.

Keywords: engagement risk, client pressure, bargaining power, conceptual model, decision.

JEL Code: M42




1
 West University of Timisoara, Faculty of Economics and Business Administration, anca.sumanaru94@e-uvt.ro
DOI: 10.29302/oeconomica.2021.23.2.11
Pp. 118-128