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Theoretical model explores auditor pricing strategies and client relationships, suggesting profit motivations.
Presents a model to consider auditor and client behavior over a two-year period for audit services. Development of an economic rational for lowballing; Consideration of the relationships between auditors and clients; Status of type one and type two auditors; Suggestion that lowballing is done in order to secure future profits.
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Katherine A.E. Blewett (1994) studied this question.
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