A study of the client’ expectation of auditors’ characteristics

Abstract

Purpose: The principal objective of this study is to (i) identify the most auditor characteristics according to audit clients, (ii) understand if the factors and statements provided in the SERVQUAL model are empirically valid and reliable for auditor characteristics, (iii) if there is a relationship between client expectations and auditor characteristics and (iv) if the relationship changes as an effect of different demographics. Design: In order to achieve the aforementioned objectives, a quantitative methodology was employed for the research. Questionnaires were sent out to owners who are involved in audits and who are in contact with the auditor, totaling 415 valid respondents. An exploratory factor analysis was conducted to discover the underlying latent variables which resulted from the responses to statements from the questionnaire, using the SERVQUAL model as a basis for statements. Findings: The EFA Process identified 3 latent factors through the responses gathered. These three factors were labeled as F1; ‘Auditor efficiency, understandability, professionalism and client expectations’, F2; ‘Tangible items and aesthetics’ and F3; ‘Auditor consistency, experience and availability’. All factors were deemed to have a valid Cronbach’s Alpha, with F1 and F3 having excellent reliability, whereas F2 had high reliability. Furthermore, the study reveals that all dimensions of the SERVQUAL model are perceived to have a positive influence on expected auditor characteristics. Conclusions: This study concludes which auditors’ characteristics are expected from clients, and which are more important than others. Implications/Value: This study aimed to identify the client’s expectations of auditor characteristics by analyzing each dimension of the SERVQUAL model. Such results allow auditors to understand what is expected from them in order to satisfy their clients.