Conflict Structuration in Audit Findings Negotiation: A Case Study of a Private University Reaccreditation in North Jakarta

Carmel Meiden, Yosef Dema, Tita Djuitaningsih

Abstract


This research examines the structuration of conflicts during the negotiation of audit findings within the context of private university reaccreditation. The study focuses on identifying the key factors that initiate and escalate conflicts, as well as the strategies employed by auditors and university officials to manage and resolve these conflicts. It also explores the influence of power dynamics, communication, and economic constraints on the negotiation process. The research utilizes qualitative methods, including observations of auditor-auditee interactions and document analysis, to investigate the complexities of audit negotiations. The study is anchored in Giddens' Structuration Theory, which provides a framework for understanding how institutional structures and individual actions shape the conflict dynamics. The findings reveal significant power imbalances between auditors and auditees, communication challenges, and economic constraints that contribute to the structuration of conflicts. The study also highlights how procedural rigidity and the struggle to align local practices with international standards exacerbate these conflicts, ultimately impacting the outcomes of the reaccreditation process. The research underscores the need for improved decision-making processes, genuine compliance practices, better resource management, and effective communication to enhance the reaccreditation process. These findings offer valuable insights for policy development and institutional governance in the higher education sector.

Keywords


Conflict Structuration, Audit Negotiations, Private University Reaccreditation, Power Dynamics, Gidden’s Structuration Theory

Full Text:

PDF

References


Andie, Malterud., Anne, Maydan, Nicotera. (2020). (4) Expanding structurational divergence theory by exploring the escalation of incompatible structures to conflict cycles in nursing. Management Communication Quarterly, doi: 10.1177/0893318920912738

Anne, Maydan, Nicotera. (2015). (4) Damned If I Do and Damned If I Don’t: How Structurational Divergence Strips Actors of Agency. Management Communication Quarterly, doi: 10.1177/0893318915585143

Beattie, V., Fearnley, S., & Hines, T. (2004). The Auditor-Auditee Relationship and its Impact on the Audit Process. Journal of Business Finance & Accounting, 31(3-4), 517-548.

Beattie, V., Fearnley, S., & Hines, T. (2012). Do UK audit committees really engage with auditors on audit planning and performance?," Accounting and Business Research, Taylor & Francis Journals, vol. 42(3), pages 349-375, https://10.1080/00014788.2012.698090

Beattie, V., Fearnley, S., & Hines, T. (2012). Reaching Key Financial Reporting Decisions: How Directors and Auditors Interact. Wiley.

Beattie, V., Fearnley, S., & Hines, T. (2014). Auditor–Client Interactions in the Changed UK Regulatory Environment – A Revised Grounded Theory Model. International Journal of Auditing 19 (1), 15-36, https://doi.org/10.1111/ijau.12031

Beattie, Vivien, Stella Fearnley, Richard Brandt (2004). A Grounded Theory Model of Auditor-Client Negotiations. International Journal of Accounting, 8:1-19 (2002)

Bergner, Jason, Sean A. Peffer, Robert J. Ramsay (2015). Concession, Contention and Accountability in Auditor-Client Negotiations. Behavioural Research in Accounting. 28(1):150507083659005

Blaufus, Kay., Lorenz, Daniela., Milde Michael., Peuthert, Benjamin., Schwäbe, Alexander N. (2022) Negotiating with the tax auditor: Determinants of tax auditors' negotiation strategy choice and the effect on firms’ tax adjustments. Accounting, Organization and Society, Volume 97, February 2022 101294, https://doi.org/10.1016/j.aos.2021.101294

Bowen, G.A. (2009), "Document Analysis as a Qualitative Research Method", Qualitative Research Journal, Vol. 9 No. 2, pp. 27-40. https://doi.org/10.3316/QRJ0902027

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77-101. https:// 10.1191/1478088706qp063oa

Brittingham, B. (2009). Accreditation in the United States: How Did We Get to Where We Are? New Directions for Higher Education, 2009(145), 7-27. https://doi.org/10.1002/he.331

Bunget, O. C., Sumănaru, A. (2022), A Bibliometric Study uponAuditor-Client Negotiation Aspects, Audit Financiar, vol. XX,no. 3(167)/2022, pp. 511-524, https://10.20869/auditf/2022/167/018

Creswell, J. W. (2013). Qualitative Inquiry and Research Design: Choosing Among Five Approaches (3rd ed.). Sage Publications.

da Rocha, Costa., Antônio, Carlos. (2019). (2) Structuration of Core Operatory Structures of Agent Societies. doi: 10.1007/978-3-030-16335-8_6

DeZoort, F. T., & Salterio, S. E. (2001). The Effects of Corporate Governance Experience and Financial-Reporting and Audit Knowledge on Audit Committee Members’ Judgments. Auditing: A Journal of Practice & Theory, 20(2), 31-47. https://10.2308/aud.2001.20.2.31

Eaton, J. S. (2011). An Overview of U.S. Accreditation. Council for Higher Education Accreditation (CHEA): Washington.

Elliott, Anthony. (2020). (3) Structuration theories: Giddens and Bourdieu. doi: 10.4324/9781315149714-5

Fereday, J., & Muir-Cochrane, E. (2006). Demonstrating Rigor Using Thematic Analysis: A Hybrid Approach of Inductive and Deductive Coding and Theme Development. International Journal of Qualitative Methods, 5(1), 80-92. https://doi.org/10.1177/160940690600500107

Gibbins, M., McCracken, S. A., & Salterio, S. E. (2007). The Auditor-Auditee Relationship and its Impact on the Negotiation Process. Accounting, Organizations and Society, 32(4-5), 363-387.

Gibbins, M., McCracken, S., & Salterio, S. (2010). The auditor’s strategy selection for negotiation with management: Flexibility of initial accounting position and nature of the relationship. Accounting, Organizations and Society, 35(6), 579-595. https:// 10.1016/j.aos.2010.01.001

Gibbins, M., Salterio, S., & Webb, A. (2002). Evidence about auditor-client management negotiation concerning client’s financial reporting. Journal of Accounting Research, 39(3), 535-563. https://10.1111/1475-679X.00027

Giddens, A. (1984). The Constitution of Society: Outline of the Theory of Structuration. University of California Press: Glasgow.

Harvey, Lee. (2004). The Power of Accreditation: Views of Academics. Journal of Higher Education Policy and Management, 26 (2), p207-223 Jul 2004, https:// 10.1080/1360080042000218267

Hatfield, Richard Charles., Mullis, Curtis E., Trotman, Ken T. (2022). Interactive auditor-client negotiations: the effects of the accumulating nature and direction of audit differences. Accounting review: A quarterly journal of the American Accounting Association (2022) 97 (7): 223-241, https://doi.org/10.2308/tar-2020-0205

Kmin, A.О. (2022). (5) Strukturationstheorie als theoretisches Fundament. doi: 10.1007/978-3-658-37717-5_2

Knapp, M. C. (1985). Audit Conflict: An Empirical Study of the Perceptions of Auditors and Client Managers. The Accounting Review, 60(4), 615-634.

Knapp, Michael C. (1985). Audit Conflict: An Empirical Study of the Perceived Ability of Auditors to Resist Management Pressure. JSTOR, 60(2):202-211.

Kumar, P., Singh, J., & Sharma, R. (2021). Challenges in Higher Education Accreditation: A Study of Private Universities. Journal of Education and Learning, 10(1), 1-15.

Kumar, Pradeep, Balvinder Shukla, Don Passey (2021) Impact of Accreditation on Quality and Excellence of Higher Education Institutions. Investigacion Operacional, 41(2): 151-167.

Kvale, S., & Brinkmann, S. (2009). InterViews: Learning the craft of qualitative research interviewing (2nd ed.). Sage Publications, Inc.

McCracken, Susan & Salterio, Steven E. & Gibbins, Michael, 2008. Auditor-client management relationships and roles in negotiating financial reporting, Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 362-383.

McTavish, Carolyn (2018). Audit negotiations: The effect of communicating national office involvement and auditor approach on negotiation outcomes. Managerial Accounting Journal, 33 (5).

Mergalyas, M., Kashapov., Anastasia, Lukina. (2023). Structural-level organization of conflict competence in the professional activities of a manager. Vestnik Sankt-Peterburgskogo universiteta. Psihologiâ, doi: 10.21638/spbu16.2023.209

Myburgh, Zahida &Talita Calitz (2022). Quality management of programme reaccreditation at private higher education institutions in South Africa. The Independent Journal of Learning and Teaching, IJTL vol.17 n.2 Sandton 2022.

Orla, McGarry. (2016). (3) Knowing ‘how to go on’: structuration theory as an analytical prism in studies of intercultural engagement. Journal of Ethnic and Migration Studies, doi: 10.1080/1369183X.2016.1148593

Patton. M. Q. (2002). Qualitative research and evaluation methods (3rd ed.). Thousand Oaks, CA: Sage Publications.

Poole, M. S., & Van de Ven, A. H. (1989). Using Paradox to Build Management and Organization Theories. Academy of Management Review, 14(4), 562-578. https://doi.org/10.2307/258559

Poole, M., & Desanctis, G. (1990). Understanding the use of Group Decision Support Systems: The Theory of Adaptive Structuration. In J. Fulk, & C. Steinfield (Eds.), Organizations and Communication Technology (pp. 173-193). SAGE Publishing. https://doi.org/10.4135/9781483325385.n8

Randle, Sr., E. C. (2022). An Examination of the Impact of Control Risk, Negotiation, and Pricing Specialists in the Audit of Fair Value Measurements. Journal of Accounting and Finance, 22(4). https://doi.org/10.33423/jaf.v22i4.5454

Shin, J. C., & Harman, G. (2009). New challenges for higher education: Global and Asia-Pacific perspectives. Asia Pacific Education Review, 10(1), 1-13. https://10.1007/s12564-009-9011-6

Siamak, M., Shams, F., & Abdollahi, M. (2022). The Role of Power Dynamics in Audit Negotiations. International Journal of Auditing, 26(2), 333-352.

Siamak, Sami, Khosravipour Negar, Lashgari Zahra (2022). Effect of Dialectical Metaphor of Auditors' Negotiation Maturity Process. Journal of Accounting Knowledge, Volume 13, Issue 1; 121-139.

Smith, W. K., & Lewis, M. W. (2011). Toward a theory of paradox: A dynamic equilibrium model of organizing. Academy of Management Review, 36(2), 381-403.

Stephen, Farrall. (2021). (1) Where Have All the People Gone? Theories of Structuration, Practice and Agency. doi: 10.1007/978-3-030-74830-2_6

Van de Ven, A. H., & Poole, M. S. (1995). Explaining Development and Change in Organizations. Academy of Management Review, 20(3), 510-540. https://doi.org/10.2307/258786

Williams, P. (2018). Actor interactions in audit conflict: A micro-level analysis. Journal of Conflict Resolution, 62(4), 721-744.

Yin, R. K. (2018). Case Study Research and Applications: Design and Methods (6th ed.). Thousand Oaks, CA: Sage Publications, Inc.




DOI: https://doi.org/10.33373/mja.v19i2.8724

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Office:

Department of Accounting Studies, Faculty of Economi and Bussines, Universitas Riau Kepulauan

unit F

Jl. Pahlawan No. 99, Bukit Tempayan, Batu Aji, Kota Batam

Contact: (0778) 39275

e-mail: measurement@journal.unrika.ac.id

Web Analytics Made Easy - Statcounter View My Stats

Measurement Statistic