（1999）External Auditors Reliance on Work Performed by Internal Auditors：The Influence of Fee Pressure on This Reliance Decision（Discussion1）.pdfVIP

Auditing : A Joumal of Practice Theory Vol. 18, Supplement 1999 DISCUSSION OF External Auditors Reliance on Work Performed by Internal Auditors: The Influence of Fee Pressure on This Reliance Decision Steven E. Salterio he main result cited by Gramling (1999) analytical procedures). The client-preference T(hereafter Gramling) is that client pref- research to date has mainly focused on auditor erence for lower fees induces a greater reaction to a client preference for an account- auditor reliance on internal audit than a client ing outcome (e.g., a client preference for a par- preference for quality external audit work. This ticular accounting treatment for a transaction result clearly situates the paper in the research [Salterio 1996]). stream that has examined the effects of client Prior client-preference research has found preferences on auditor judgment. Therefore, that the auditor tends to agree with a client- the first purpose of this discussion is to ex- favored accounting treatment when generally amine this paper in the context of previous accepted accounting principles are relatively client-preference research. The second purpose more ambiguous (Haynes et al. 1998; Salterio of this discussion is to examine the reliability and Koonce 1997; Trompeter 1994). This has of Gramlings result via an examination of the been operationalized by having more or less operationalization of th