CPA Performance of Consulting Engagements with Audit Clients: Effects on Financial Statement Users' Perceptions and Decisions.

Key Points

• This research examines how different business relationships between CPA firms and audit clients impact financial statement users' perceptions and decisions.
• Analyzed user reactions to various consulting service scenarios involving CPA firms and audit clients.
• Evaluated the effects of business relationships on perceptions using a qualitative approach.
• Users exhibited varying perceptions based on the nature of consulting relationships with audit clients.
• Some consulting arrangements led to decreased confidence in the integrity of financial statements.