Audit quality and its relevance to purpose-driven management in Japan’s Big 4: literature review and directions for future research

Purpose The Big 4 have positioned audit quality (AQ) as their top priority and manage their organizations based on their raison d’être, that is, their purpose, so-called purpose-driven management (PDM). This study aims to examine the relationship between AQ, which has gradually diversified over time, and PDM. Using cases from Japan’s Big 4 as reference points, it also identifies future research directions on their relationship. Design/methodology/approach The study integrates a systematic literature review and a classical narrative review to examine papers on AQ and PDM published in the English- and Japanese-language literature. The numbers of articles included in the review are 55 and 72, respectively. Findings PDM in audit firms has become increasingly critical for integrating the diverse work styles and values of individuals into organizations. Three key issues link the relationship between AQ and PDM, namely, realizing diversity, equity and inclusion, ensuring psychological safety and improving job satisfaction. The findings suggest that addressing these issues can enhance the well-being of audit firm employees while simultaneously improving AQ. Practical implications The discussion offers insights for management seeking to collaboratively improve audit firms’ work environment, climate and culture to enhance AQ. Originality/value To the best of the author’s knowledge, this study, the first to incorporate the perspective of PDM into the classical discussion on AQ, provides meaningful insights for Japan’s Big 4 to consider when managing the relationship between AQ and purpose. It also offers future research directions and proposes specific research agendas.