Term Paper Proposal

On
Impact Of Conflict Between Auditor & Client During Team Formation On
Audit Quality

Course Title: Audit & Asurance-2

Course Code: 3203

Submitted To:
Kanon Kumar Sen
Lecturer
Department of Accounting & Information Systems
Jahangirnagar University

Submitted By:
Team Antidote
Department of Accounting & Information Systems
Jahangirnagar University

Date of Submission: 17 February 2023

 Members of Team Antidote

No. Name ID.

1 Farjana Rahman 1763
2 Mehrubin Parash Moumita 1764

3 Fatema-Tuz-Zohra 1766
4 Priyonti Roy 1767

5 Shakhawat Hossain 1770

6 Md. Murad Hasan 1777

7 Kajal Mondal 1778

Introduction
The complete task of auditing a firm’s financial statements is a lengthy process consisting of
several layers of procedures, analysis, and investigation. This is why an auditor requires a
supporting team to assist him/her with their skills and expertise in professionally judging the
financial materiality of a firm and its performance representation. In this report, an attempt for
research has been on the audit quality influenced by the team formation conditions like client’s
preference and the consequences.

Research objective
▪ In which tasks does the quality of audit team affect more intensively?
▪ What kind of problems in audit quality arise from such conflict?
▪ How do auditors tackle the lacking of a competent audit team for achieving audit
objectives?

Literature review
In accounting, auditing is a way to using practical professional knowledge to provide reasonable
assurance to the stakeholders of a firm regarding the faithful and fair representation of its financial
statements. Velte, and Issa, (2019), mentioned that this is critical for the investors and lenders
because the performance presented on these documents and key information provided influence
their economic decisions. If there remains any sort of material misstatement, it can cause them to
face a consequence of loss and miscalculated expectations from financial transactions.
Team formation is a part of audit planning by the auditor by keeping compliance with subjected
audit framework and regulations. An audit team is mainly built by maintaining two conditions of
which one is availability and client’s preference according to Rivera, Villar, and Marrero, (2017).
Downar, Ernstberger, and Koch, (2021) found that in many cases where the client wants to be
more involved in the audit procedure, their preferences can override the availability issues during
team formation. Some common problems that have arose are expectation gap, limited analytical
skills.

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Methodology
Method
For obtaining the mentioned research objectives, the research structure will use quantitative
methods for conducting the research. It includes performing interview, previously published
interviews, online articles, books, and necessary ISAs or frameworks relevant to the topic (Hai,
2016).

Data collection
The quantitative data will be collected from analysis from interviews and thorough study of
articles. These sets of information and the ISA frameworks used in relevant cases will be our
primary data (Nassaji, 2015). Some qualitative data will be used from relevant statistics for
secondary data as supportive information.

Proposed outcome
There will be an attempt to look for reasonable solutions that can reduce the impact of conflict
between auditor availability and client preference through inclusive study on cases and framework
guidance in such.

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References
Downar, B., Ernstberger, J. and Koch, C., 2021. Determinants and consequences of auditor dyad formation
at the top level of audit teams. Accounting, Organizations and Society, 89, p.101156.

Hai, P.T., 2016. The research of factors affecting the quality of audit activities`. International Journal of
Business and Management, 11(3), pp.83-94.

Nassaji, H., 2015. Qualitative and descriptive research: Data type versus data analysis. Language teaching
research, 19(2), pp.129-132.

Rivera, D.E., Villar, A.S. and Marrero, J.I.S., 2017. Auditors selection and audit team formation in
integrated audits. Calitatea, 18(157), p.65.

Velte, P. and Issa, J., 2019. The impact of key audit matter (KAM) disclosure in audit reports on
stakeholders’ reactions: a literature review. Problems and Perspectives in Management, 17(3), pp.323-341.

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