Under current institutional arrangements it is

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Unformatted text preview: lient relationship. Under current institutional arrangements, it is psychologically impossible for auditors to maintain their objectivity; cases of audit failure are inevitable, even with the most honest auditors. —Bazerman et al. (1997) Helpful comments were received from Lynnea Brumbaugh-Walter, Bryan Church, John Dickhaut, Nick Dopuch, Mahendra Gupta, Steven Kachelmeier, Kathryn Kadous, Brian Mayhew, Claus Langfred, Bill Messier, Mark Peecher, Bill Rankin, P. K. Sen, Shyam Sunder, Ping Zhou, two anonymous reviewers, seminar participants at Georgia State University, The Ohio State University, University of Illinois Auditing Symposium, Washington University, 2001 Midyear Auditing meetings, and the First Asian Conference on Experimental Business Research held at Hong Kong University of Science and Technology. Research assistance was received from Amy Choy and Jim Holloway. Financial support from the Taylor Experimental Laboratory at the Olin School of Business is gratefully acknowledged. Submitted July 2000 Accepted September 2001 265 266 The Accounting Rev...
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