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The purpose of this paper is to examine circumstances under which auditors subordinate their judgment. More specifically, the authors investigate factors associated with auditors’ propensity to accept client-preferred accounting methods that conform to accounting standards but do not faithfully represent the entity’s financial position, financial performance and cash flows.

Based on the theory of planned behavior (TPB), the authors developed a survey that was sent to auditors at a non-Big 4 audit firm.

Main results suggest that auditors tend to agree with a client’s preferred accounting method when they anticipate little fallout from this decision, they believe they can easily justify the method, and they perceive that colleagues, shareholders and creditors would also agree with the decision.

Results benefit auditing standard setters and regulators and are relevant for accounting institutes and audit firms because practitioners can learn about circumstances under which auditors subordinate their judgment.

This study contributes to the audit literature by using the TPB to identify factors associated with auditors’ judgment subordination. In addition, it applies the TPB in a context where a client-preferred accounting method is considered acceptable but is not the most appropriate in light of the audited entity’s specific circumstances.

This study aims to investigate the factors from four dimensions that have an effect both on formal and informal knowledge sharing (FKS and IKS) and the relationship between knowledge sharing (KS) and task performance in Chinese manufacturing.

The structural equation modeling approach was applied to hypothesis testing according to the data collected from employees of manufacturing companies through the online questionnaire. A total of 530 valid responses were obtained.

The results indicate that level of knowledge structure, self-efficacy, leadership support and KS culture all have a significant positive effect on both FKS and IKS while trust only positively affects FKS and information technology support positively affects IKS. Both FKS and IKS positively contribute to the task performance of manufacturing companies.

This study merely considered the impact of six factors on KS from four perspectives. Consequently, the relationship between some important other factors and KS is not revealed. In addition, the results of this study indicate that there might be a more complicated relationship between these factors and KS than the model constructed by this study. Therefore, in future research, more influencing factors could be considered in the research framework, and a multilevel model, such as a model considering the mediation effect, could be further explored.

According to the results, both FKS and IKS play a significant role in promoting organizational task performance, which is worthy of attention by the managers of manufacturing companies. In addition, the relationship between the different factors and the FKS and IKS found in this study provides specific guidance for improving the organizational KS practice.

First, previous studies considered the construction of explicit KS and tacit KS models based on the content of KS while this study considered FKS and IKS from the perspective of the process and approach of KS. Second, this research has clearly defined the level of knowledge structure from the perspective of knowledge ontology and verifies the positive effect of this factor on KS, providing a new theoretical perspective for exploring KS factors.