A Highlight on the Possible Risk Associated with the One-Partner Audit Team Scenario

• In Event: Public Interest 1

Abstract

An accounting firm takes the risk associated with the partner who supervises the engagement. A synthesizes of three theories: the functional organization theory, the power of lower participants theory and the third dimension of power theory reveals the distribution of power between the partner who leads the audit engagement and other participating auditors in the engagement. The power of lower participants theory puts forward that the auditors in the lower hierarchy are more powerful than the partner in the presence of a conflict between auditors and the leading partner. Together the functional organization theory and the second and third dimensions of power theory suggest that the partner has more power than the other auditors do. Several techniques are arguably available for the partner to assure reaching a desired end in the form of an audit opinion that pleases the client management. A possible solution would be to invite senior auditors to take part in leading engagements. Joint audit yet is another possible solution.

Author

• Khalid Rasheed Al-Adeem, King Saud University