Casual observation indicates that partners in accounting firms occasionally select actions which expose their firms to great risk. A model illustrates conditions when a partner may have incentive to associate with a client whose expected value to the accounting firm is negative. The potential for this apparent goal incongruence exists when a partner′s benefits from a specific client exceed his/her ownership share of the engagement′s profits.
Accounting, Auditing & Accountability Journal – Emerald Publishing
Published: Jun 1, 1992
Keywords: Accounting industry; Models; Auditing profession; Auditors
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