Auditor changes and audit satisfaction: Client perceptions in the Sarbanes-Oxley era of legislative restrictions and involuntary auditor change

Daugherty, Brian; Tervo, Wayne

doi:10.1016/j.cpa.2005.09.003

Cited by 14 publications

(14 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Top management support sends a clear message to the entire organization that the internal audit function is a crucial organizational mechanism and that it is primordial to allocate resources and attention to fulfill its potential. This is consistent with previous research showing that when Audits and Performance Improvement in Organizational Units auditees feel that the organization and its executives are supportive of the audit process, a better quality and more effective audit can be conducted (Penini and Carmeli 2010;Daugherty and Tervo 2008), which also ensures the independence of the auditors in the process (DeAngelo 1981).…”

Section: Discussionsupporting

confidence: 87%

Internal Audits as a Source of Ethical Behavior, Efficiency, and Effectiveness in Work Units

Ma’ayan

Carmeli

2015

J Bus Ethics

View full text Add to dashboard Cite

This study of internal auditors and auditees, who engage in both financial and operational internal audits in Israel, extends theory and research on internal audits in organizational units. It develops and tests a model that examines the role of top management and internal auditors in facilitating learning from internal audits and driving perceived performance improvement. We argue that support from the top management for the internal audit as well as the auditor's capacity (skills, resources, and behaviors) facilitate learning from audits and help audited units to improve ethicality, efficiency, and effectiveness in organizations. The results of time-lagged survey data provide general support for the hypothesized indirect relationships between auditor capacity, auditor-auditee relational exchanges, learning from audits, and three different perceived performance measures: ethical behavior, efficiency, and effectiveness. We discuss the implications for research on internal audits, proactive learning, ethics, and performance improvement of organizational units in the public sector.

show abstract

Section: Discussionsupporting

confidence: 87%

Internal Audits as a Source of Ethical Behavior, Efficiency, and Effectiveness in Work Units

Ma’ayan

Carmeli

2015

J Bus Ethics

View full text Add to dashboard Cite

show abstract

“…The Public Accounting Oversight Board (PCAOB) and the European Commission (EC) argue that fixing the term of the auditor may help in enhancing auditor independence, thus reducing bias (Cameran et al, 2014) and ultimately improving audit quality. Nonetheless, there is research which suggests that audit quality is a factor of other determinants which are achieved through long term engagements such as auditors' experience with clients, industry expertise and responsiveness to client needs (Daugherty and Tervo, 2008;Lal Joshi et al, 2009;Boldeanu and Tache, 2016). Thus, while mandatory audit firm rotation may increase independence, audit quality may be affected negatively by the loss of client-specific knowledge which is gained by audit firms over time (Cameran et al, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Selected Behavioural Factors in Client-Initiated Auditor Changes: The Client-Auditor Perspectives

Baldacchino¹,

Caruana²,

Grima³

et al. 2017

ERSJ

View full text Add to dashboard Cite

The objective of the paper is to compare the perspectives of both external audit clients and auditors themselves with respect to the nature and significance of two behavioural factors, the client-auditor working relationship and auditor accessibility, which have been identified in the literature as affecting client-initiated auditor changes. A mixed methodology was employed using both online questionnaires and semi-structured interviews. On the part of audit clients, a questionnaire was sent to a random sample of 350 Malta-based companies, out of which 74 responses were received. Seven of the companies also backed up their responses with an interview. On the part of practitioners, a questionnaire was sent to 668 warranted auditors, out of which 124 responses were received. Four of these practitioners also backed up their responses with an interview. Both auditors and clients recognise the importance of clients establishing sound working relationships with all auditing parties-such relationships to include elements such as mutual trust, auditor objectivity and competence-but particularly with the audit manager (as per clients) and audit partner (as per auditors). Both parties also attached high importance to auditor accessibility, this mostly signifying being ready to offer their clients immediate help whenever necessary. Clearly accessibility is not determined by physical presence as much as auditors think, but by each party being reached and responsive with ease, more so during office hours, and increasingly by e-mail. Auditors seem to be more focused on abiding by professional standards, while allotting less importance to other attributes evidently more appreciated by clients, such as personality ones including communication skills. Auditors have to work more on the non-professional aspects of both behavioural factors if they are to secure a higher probability of being reappointed.

show abstract

“…Twenty‐three (of the 34) items in our questionnaire are based on Duff (2004). The other items are based on other studies (e.g., item 29 that is based on Daugherty & Tervo, 2008) or were suggested by members of the Belgian external auditing profession 3 (e.g., items 4 and 10). As can be seen from Table 6, the 34 items are grouped into five factors that were derived from an explanatory factor analysis (with VARIMAX rotation), which we label as follows: (i) client service ( CLSERV ); (ii) deontology/reputation ( DEON ); (iii) accessibility ( ACCESS ); (iv) audit fee ( FEE ); and (v) industry expertise ( INDEXP ).…”

Section: Data Collectionmentioning

confidence: 99%

“…However, the latter approach has several advantages because it allows overall client satisfaction to be determined and also identification of the attributes that drive client satisfaction. Whereas some prior studies (Behn et al ., 1997; Sucher, Moiser & Zarova, 1998; Ismail et al ., 2006; Daugherty & Tervo, 2008) have already explored perceptions of auditor performance, notable differences exist. A first issue relates to important disparities with regard to the attributes included in the survey instruments.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…This is especially true during times of economic downturn, which is likely to make clients more sensitive to the (perceived) relationship between audit services and audit fees (Cowan, 1990; Carcello, Hermanson & McGrath, 1992). An analysis of such perceptions is a way in which audit firms may deliver greater satisfaction to their clients and simultaneously improve their own audit quality (Daugherty & Tervo, 2008). In a related vein, Svanström and Sundgren (2010) observe a positive relationship between the perceived quality of the financial statement audit by the client and the amount of advisory services purchased from the auditor.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Auditor Performance, Client Satisfaction and Client Loyalty: Evidence from Belgian Non‐Profits

Reheul¹,

Caneghem²,

Verbruggen³

2012

Int J Auditing

View full text Add to dashboard Cite

Based on a large‐scale survey, we explore auditor performance perceptions among a sample of Belgian non‐profits. In addition, we examine the relationship between (i) perceived auditor performance and client satisfaction with the auditor; and (ii) client satisfaction with and client loyalty towards the auditor. Moreover, we contrast the ability of two alternative performance scales (i.e., one borrowed from the service quality literature and the other derived from the auditing literature) in explaining overall client satisfaction with the auditor. Overall results are indicative of a high degree of satisfaction with and loyalty towards the auditor. In addition, our findings suggest that the drivers of client satisfaction (and loyalty) are behavioral, rather than economic in nature. Our results indicate that the measurement scale derived from the auditing literature is slightly better in explaining overall satisfaction with the auditor.

show abstract

Auditor changes and audit satisfaction: Client perceptions in the Sarbanes-Oxley era of legislative restrictions and involuntary auditor change

Cited by 14 publications

References 8 publications

Internal Audits as a Source of Ethical Behavior, Efficiency, and Effectiveness in Work Units

Internal Audits as a Source of Ethical Behavior, Efficiency, and Effectiveness in Work Units

Selected Behavioural Factors in Client-Initiated Auditor Changes: The Client-Auditor Perspectives

Auditor Performance, Client Satisfaction and Client Loyalty: Evidence from Belgian Non‐Profits

Contact Info

Product

Resources

About