The significance of selected behavioural factors in client-initiated auditor changes

Abstract

Purpose: This study analyses two major behavioural factors affecting client-initiated auditor changes. It involves ascertaining the nature and assessing the significance of two factors, first that of a sound working relationship, including the barriers leading to the deterioration of such a relationship and second that of accessibility. Design: A random sample of 350 companies were contacted through an online questionnaire, out of which 74 valid responses were received. Seven of these companies also backed up their responses with an interview. Findings: Elements that resulted as most important to a working relationship are competence, confidentiality and communication. Clients seek to build a sound working relationship with all audit-related parties, especially with the audit manager. The working relationship is affected by personality factors in particular when this results in barriers to communication. Auditor accessibility is mostly valued when clients need help with urgent matters. Accessibility is not determined by physical presence, and it is more important for the client to reach the auditor via mobile, telephone or e-mail, and more so during office hours. Maltese companies appear not to be highly influenced by non-verbal communication. Conclusion: Clients are after a professional working relationship in which they are given the appropriate level of attention at the right time. Even though personal characteristics are not attributed much importance, their recognition might be the hidden key towards having an excellent working relationship. Implications Therefore auditors have a higher probability of being reappointed if clients are satisfied with their working relationship. To have a sustainable working relationship it is clear that auditors have to possess the professional elements of a working relationship and have to be accessible to their clients during office hours.