A Qualitative Meta-Synthesis of Contingent Factors Influencing the Negotiation Process between Taxpayers and Tax Auditors

Subject Areas : Financial and Behavioral Researches in Accounting

Fatemeh Sadat Hodaei ¹ , zohreh zivdar ² , Afsaneh Soroushyar ³

1 - , Department of Accounting, Isfahan Isf.C., Islamic Azad University, Isfahan, Iran
2 -
3 - , Department of Accounting, Isfahan Isf.C., Islamic Azad University, Isfahan, Iran

Received: 2025-06-03 Accepted : 2025-08-21 Published : 2025-09-07

Keywords: Tax negotiation, contingency factors, tax auditor, taxpayers, Metasynthesis method.,

Abstract :

Contingent factors in the negotiation between the taxpayer and the tax auditor are not merely limited to objective and tangible conditions surrounding the negotiation; they  also include intangible and contextual elements that influence the auditor's judgment. These factors can provide a framework through which the tax auditor perceives existing characteristics and uses them for interpreting and screening information. This study was conducted with the aim of identifying contingent factors affecting the negotiation process between auditors and taxpayers, using a seven-step metasynthesis method : defining the research question, systematic literature search, article selection, data extraction, findings synthesis, quality control, and report presentation. The research population includes national studies published between the years 2001 - 2024 , as well as international articles published from 2001 to 2024. Within the individual dimension, characteristics of both the auditor and the taxpayer were examined. In the organizational dimension, three categories were identified: organizational factors of the auditor, organizational factors of the taxpayer, and organizational relationships between the two parties.  five categories were recognized: tax laws and regulations, influential institutions, social factors, economic factors, and market factors. The key distinction of this study from previous ones lies in its comprehensive approach to multi-dimensional classification of factors, along with a focus on behavioral, structural, and environmental components within the context of tax negotiation. The results indicate that understanding these contingent factors can improve interactions between auditors and taxpayers, enhance transparency in tax negotiations, and support the development of more effective policies in the fields of taxation and auditing.

References:

Abdoli, G., Abrishami, H., & Hoseinifard, S. M. (2016). Favorable tax audit in order to reduce tax evasion in income tax: a theoretical and empirical analysis. Journal of Tax Research, 23(28), 0-0.‏
Acito, A. A., Hogan, Ch. E. and Mergenthaler, R. D. (2018). The Effects of PCAOB Inspections on Auditor-Client Relationships. The Accounting Review, 93 (2), 1–35.
Alavi Tabari,Seyed Hossein & Parsai, Mena. (2019). The Relationship between Audit Quality and Corporate Transparency in Tehran Stock Exchange.The Financial Accounting and Auditing Research, 11(41), 43-68.)In Persian)
Alderman, J. (2023). Discussion of: The effect of client gender and negotiation style on auditors' proposed audit adjustments. Advances in Accounting, 62, 100675.‏
Aref Manesh, Zohreh, Mousavi, Mehran. (2022), The Effect of Auditor's Professional Identity on the Relationship between the Self-efficacy of Auditor-client Negotiations and Objectivity, judgment and decision-making in accounting and auditing, 1 (3), 24-10.)In Persian)
Awadallah, E. (2018). Auditor-client negotiations: applying the dual concerns model in an emerging economy. International Journal of Managerial and Financial Accounting, 10 (3), 250-272.
Bahrami, T., Bahri Sales, J., Jabbarzadeh Kangar Louie, S., & Haghvardi Zadeh, M. (2021). The Effect of Stress on the Audits' Professional Independence. Professional Auditing Research, 1(2), 84-104.‏(In Persian)
Bassey, B. E., Effiok, S. O., & Eton, O. E. (2013). The impact of environmental accounting and reporting on organizational performance of selected oil and gas companies in Niger Delta Region of Nigeria. Research Journal of finance and accounting, 4(3), 57-73.‏
Bagheri, B. , Babajani, J. and Barzideh, F. (2019). Tax Compliance Factors in Iranian Tax System. Empirical Research in Accounting, 9(1), 284-313. doi: 10.22051/jera.2017.16999.1762.)In Persian)
Blaufus, K., Reineke, J., & Trenn, I. (2023). Perceived tax audit aggressiveness, tax control frameworks and tax planning: an empirical analysis. Journal of Business Economics, 93(3), 509-557.‏
Burke, J. J., Hoitash, R. and Hoitash, U. (2019). Auditor Response to Negative Media Coverage of Client Environmental, Social, and Governance Practices. Accounting Horizons, 33 (3): 1–23.
Chen, K. Y., Elder, R. J. and Liu, J. L. (2005). Auditor Independence, Audit Quality and Auditor-Client Negotiation Outcomes: Some Evidence from Taiwan. Journal of Contemporary Accounting & Economics, 1 (2), 119-146.
Church, B.K., Dai, N.T., Kuang, X. and Liu, X. (2020). The Role of Auditor Narcissism in Auditor-Client Negotiations: Evidence from China. Contemp Account Res, 37: 1756-1787.
Elitzur, R., & Yaari, V. (2024). Tax advisors and tax aggressiveness: a bargaining model. Journal of Accounting, Auditing & Finance, 39(1), 160-180.‏
Etemadnia, Navideh and Bayramzadeh, Sona (1400), Individual and organizational variables affecting the negotiation strategies of pharmaceutical industry managers (case study of Temad Company). Master's thesis, Khatam Non-Governmental-Non-Profit University. ( In Persian)
Fitria Husnatarina, S. E. and M.Si. A. k (2012). The Effect of Mandatory Auditor Rotation and Retention on Auditor-Client Negotiations Strategies. Rev. Integr. Bus. Econ. Res, 1(1), 260-276.
Dejun, K., & Lei, Z. (2014). Effects of laser quenching on impact toughness and fracture morphologies of 40CrNiMo high strength steel. Journal of materials engineering and performance, 23, 3695-3702.‏
Gibbins, M., McCracken, S. and Salterio, S. E. (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.
Hasas Yeganeh, Yahya, Babajani, Jafar, Barzideh, Farrokh, Bigler, Kiomars (2017). Contingent factors affecting negotiation for resolving auditor-client disagreements regarding financial reporting. Auditing Knowledge, 17 (67), 5-23.)In Persian)
Hatfield, R. C., Agoglia, Ch P. and Sanchez, M. H. (2005). The effect of client characteristics on the negotiation tactics of auditors. Drexel University. Bennett S. LeBow College of Business, 4 (2), 56-83.
Hatfield, R. C., C. P. Agoglia. and Sanchez, M. H. (2008). Client characteristics and the negotiation tactics of auditors: Implications for financial reporting. Journal of Accounting Research 46(5): 1183-1207.
Hatfield, R. C., Houston, R. W., Stefaniak, Ch. M. and Usrey, S. (2008). The Effect of Magnitude of Client Reporting Error and Order of Multiple Issues on Auditor-Client Negotiations.
Hatfield, R. C., Mullis, C. E. and Trotman, K. T. (2023). Interactive Auditor-Client Negotiations: The Effects of the Accumulating Nature and Direction of Audit Differences. The Accounting Review 1 November 2022; 97 (7): 223–241
. He, Y., Kim, J. B. Li, B. and Liu, Zh. (2023). Auditors’ Technological Proximity Knowledge. The Accounting Review, 98 (5), 323–351.
Hosseyni, S. N., Safari Gerayli, M., & Valiyan, H. (2021). Auditor effectiveness attitudes in negotiating on the auditor objectivity: Analysis of the role of professional identity. Financial Accounting Knowledge, 8(3), 175-200.‏
Jones, J., MacTavish, C. and Schultz, W. (2019). The effect of gender and firm identification on auditor pre-negotiation judgments. Advances in Accounting, 44, 49-57.
Jumagulovich, M. A., Ibragimovich, A. M., Demirkaya, H. & Rafael, C. (2024). Procedure for Implementing Tax Control in Tax Risk Management and Tax Audits. Partners Universal International Innovation Journal, 2 (1), 76–83.
Kazemi Ulum, Mehdi, Rezazadeh, Javad, Kordestani, Gholamreza (2020). Identification and Ranking of Influencing Factors on The Adoption of A Concession Strategy in The Negotiations Between The Auditor and The Client, Iranian journal of Behavioral & Valued Accounting, 4(8), 163-213.)In Persian)
Khabbazzadeh, Mohammad Esmaeil, Jahanshad, Azita. (2020). Taxpayers’ Profitability Ratios and Attributes in Value Added Tax Audit System Based on Risk. THE FINANCIAL ACCOUNTING AND AUDITING RESEARCHES, 12(46 ), 0-0. SID.)In Persian)
Khodabakhshi Shalmazari, Abdullah, Shafiee Sardasht, Jafar (2021). Commitment to pay taxes from the perspective of Jurisprudence. Tax Research Journal, 29(50): 7-26.)In Persian)
Li, Y., Xue, S. and Yi, X. (2024). The Clan Effect: Exploring the Nexus between Organizational Culture, Trust, and Audit Economics. J Knowl Econ, 3 (1), 64-88.
Lin, S. and Cheung, S. O. (2023). An Instrument for Identification of Intention to Settle in Project Dispute Negotiation. Journal of Management in Engineering, 39 (5), 134-151.
Măgdaș, N., Tiron Tudor, A. and Timea Fülöp, M. (2024). Exploring the term of the auditor-client relationship based on the ACR-models. African J. of Accounting, Auditing and Finance, 8 (3), 278-301.
Mehrani, Sasan, Eskandar, Hoda. (2017). ). Explaining of Modeling the Auditor- Client Negotiations Paradigm Concerning Financial Reporting. Empirical Research in Accounting, 6(4), 143-170.)In Persian)
Mocadlo, R. P. (2022). How Do Auditors Order Their Tasks, and How Does Task Ordering Affect Performance Under Time Pressure?. Behavioral Research in Accounting, 34(1), 93-111.‏
Mohammadi, Mohammad, Mohammadi, Saman, Samai, Seyed Jamal. (1400), The Mediating Effect of Self-Efficacy in Auditor Negotiations on the Relationship Between Financial Incentives and Social Incentives on Auditor Objectivity, Professional Auditing Research, 1(3), 28-48. )In Persian)
Mustikarini, A. and Adhariani, D. (2022). In auditor we trust: 44 years of research on the auditor-client relationship and future research directions. Meditari Accountancy Research, Vol. 30 No. 2, pp. 267-292.
Raadt, A. D., M. J.Warrens, R. J. Bosker, and Kiers, H. A. L. (2021). Kappa Coefficients for Missing Data. Educational and Psychological Measurement, 38, 519–543
Rajabalizadeh, J. and Schadewitz, H. (2025). Audit partner narcissism and audit reports readability: evidence from lead and review audit partners. Managerial Auditing Journal, Vol. 40 No. 1, pp. 30-65.
Rennie, M. D., Kopp, L. S. and Lemon, W. M. (2010). Exploring Trust and the Auditor-Client Relationship: Factors Influencing the Auditor’s Trust of a Client Representative. AUDITING: A Journal of Practice & Theory, 29 (1), 279–293.
Siamak Sami , Negar Khosravipour, Zahra Lashgari, (2022). Effect of Dialectical Metaphor of Auditors' Negotiation Maturity Process, Journal of Accounting Knowledge, 13(48), 121-139. )In Persian)
Xuan, Y., Yin, X. and Zhang, J. H. (2024). Do auditors favor clients with government favoritism? Journal of Accounting and Public Policy, 46, 107215.