How Auditors’ Client Service Affects Managers’ Cooperation with Auditor Evidence Requests

SUMMARY Audit quality is threatened when client managers are uncooperative (i.e., slow to provide evidence or not forthcoming with evidence). We examine whether auditors can increase client manager cooperation by providing better client service in their day-to-day interactions with client managers. For example, auditors can provide better client service by minimizing disruptions and communicating effectively. Across two experiments, we find that managers experiencing better client service respond timelier to auditor requests and are more forthcoming with evidence, including evidence that contradicts their preferred accounting position. Our findings suggest that auditors can use client service strategically to increase access to information, but anecdotal interviews with experienced auditors suggest that these strategic benefits are not at the forefront of auditors’ minds. Together, our study informs practice by illuminating strategic benefits of better client service and complements prior research which focuses on how service-related constructs can benefit auditors commercially and when negotiating with clients.

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Publication Details

Journal
Auditing A Journal of Practice & Theory
Published
2024-09-10
DOI
https://doi.org/10.2308/ajpt-2023-110
Citations
2
Primary Topic
Customer Service Quality and Loyalty
Type
article
Field-Weighted Citation Impact
1.35
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article

How Auditors’ Client Service Affects Managers’ Cooperation with Auditor Evidence Requests

Richard C. Hatfield, Edward Thomas, Michael A. Ricci, Kris Hoang
2 citations
Auditing A Journal of Practice & Theory
Customer Service Quality and Loyalty
1.35
article

How Auditors’ Client Service Affects Managers’ Cooperation with Auditor Evidence Requests

Richard C. Hatfield, Edward Thomas, Michael A. Ricci, Kris Hoang
article en
2 citations

Abstract

SUMMARY Audit quality is threatened when client managers are uncooperative (i.e., slow to provide evidence or not forthcoming with evidence). We examine whether auditors can increase client manager cooperation by providing better client service in their day-to-day interactions with client managers. For example, auditors can provide better client service by minimizing disruptions and communicating effectively. Across two experiments, we find that managers experiencing better client service respond timelier to auditor requests and are more forthcoming with evidence, including evidence that contradicts their preferred accounting position. Our findings suggest that auditors can use client service strategically to increase access to information, but anecdotal interviews with experienced auditors suggest that these strategic benefits are not at the forefront of auditors’ minds. Together, our study informs practice by illuminating strategic benefits of better client service and complements prior research which focuses on how service-related constructs can benefit auditors commercially and when negotiating with clients.

Auditing A Journal of Practice & TheoryVol. 44(3)
Georgia College & State University (US), University of Alabama (US), University of Florida (US)
Partnerships for the goals
Openalex Percentile: Top 15%
Customer Service Quality and Loyalty
1.35
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