Do We Need to Consider the Individual Auditor when Discussing Auditor Independence? Available to Purchase

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.