Selected behavioural factors in client-initiated auditor changes : the client-auditor perspectives

Abstract

Purpose: The objective of this study is to ascertain the nature and assess the significance of two behavioural factors identified in the literature as affecting client-initiated auditor changes. These two factors are the client-auditor working relationship and auditor accessibility. While a recent study by Caruana (2013) took the clients’ perspectives, this study sets out to analyse the auditors’ perspectives and to compare both sets of findings. Design: A sampling frame of 668 warranted auditors were contacted through an online questionnaire, out of which 124 valid responses were received. Four of these companies also backed up their responses with an interview. Findings: The most important elements to a working relationship as perceived by auditors are objectivity, trust and competence. Auditors believe that a sound working relationship needs to be present with all audit-related parties, but especially with the audit partner. According to auditors, personal factors tend to influence the working relationship, particularly when acting as barriers to communication. In fact, they regard their know-it-all attitudes and hostility as such personal factors acting as major barriers. Auditors view an auditor as accessible when s/he may be accessed by clients immediately and is found helpful with queries. They regard communication, both face-to-face and via media as equally important, especially during office hours. E-mail is the communication medium of preference. Additionally, auditors think their personal characteristics and non-verbal communication are likely to influence their accessibility towards clients. Conclusion: Both the auditors in this study and the clients in Caruana (2013) recognise the importance of establishing good working relationships with all auditing parties and of auditors being accessible to clients. However, auditors seem to be more focused on abiding by professional standards, while allotting less importance to other attributes evidently appreciated by clients. Implications Mutually beneficial relationships and eventual reappointment could be more solidly secured if additional factors, particularly communication ones are given the same importance as that presently given to professional factors.