AN EMPIRICAL STUDY OF CANADIAN COMPANIES TO DETERMINE CLIENTS' PREFERRED RELATIONSHIP APPROACH WITH THEIR FINANCIAL AUDITOR

Abstract

The purpose of our research is to determine the relationship approach that clients (buyers) prefer to have with their auditors (sellers). The success of the audit service depends on clients’ relational interactions with their auditors, yet we know very little about the client’s relationship perspective. The results of a nationwide study of Canadian corporations show that clients prefer a relational approach rather than a transactional approach with their auditor. In addition, surprisingly, clients not only want a relational approach, but they also want to remain at arm’s length, as required by audit regulators.