Joseph Y. Abekah
University of New Brunswick
Abstract: This study examines participation in the accounting standards setting process in Canada to determine the independence of auditor-client positions on new accounting standards proposals. The active role of now Big Four accounting firms in the process is underscored. However, domination of the process by Big Four firms through indirect influence of their clients' responses to individual exposure drafts is not supported. Overall results indicate that, relative to the core issues on which new accounting standards are needed, auditors and their clients generally respond independently, even if there are some new proposals on which they have the same views. The findings suggest that independent corporate and audit-firm motivations explain the decision to participate in the accounting standards setting process. The real motivations for the active participation in the process by auditors and corporations are subjects for continued research.
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