Abstract
This research investigates the influence of client integrity and competence as well as firm and individual auditor differences on materiality estimates. In a laboratory setting, a case study was administered to 494 auditors (152 managers and 342 seniors) from five Big Six firms. The subjects were randomly assigned to one of three client types: high integrity and competence, low integrity and competence, and a control group (no explicit evaluation of client integrity and competence). The results indicate that materiality estimates were influenced by: (1) client integrity and competence, (2) moral judgement, (3) auditor experience, and (4) the individual accounting firms.
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