Auditor-client dependence in the development of new accounting standards in Canada.

ABSTRACT

This study examines constituent participation in the accounting

standards setting process in Canada to determine whether the positions

of auditors and their clients relative to new accounting standards

proposals are independent of each other. Using responses to the ten

accounting exposure drafts receiving the highest public responses, the

active role of Big Eight (now Big Five) firms is underscored. For all

responses, significant agreement between Big Eight/Five auditors and

their clients in their respective positions on proposed new accounting

standards is found. However, domination of the process by Big Eight/F