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Have changes in audit standards altered client perceptions of auditors?

Have changes in audit standards altered client perceptions of auditors? Changes in external auditing over four decades motivates a historical investigation of how client employees' perceptions of auditors have changed across this period.Design/methodology/approachThis paper uses a longitudinal quasi-experiment to compare current client employees' perceptions of the auditor with results from 1972.FindingsChanges in client employees' perceptions of the audit, its usefulness and of auditor-client conflict suggest increases in auditor independence. However, this paper also finds that despite decades of efforts to strengthen auditor independence and skepticism, the primary analogy client employees apply to the external auditor remains “consultant”.Practical implicationsThe findings contribute to the discussion of whether regulatory and standard changes in the audit environment have changed aspects of client employees' perceptions of auditors.Originality/valueThe paper contributes by presenting a unique approach to partially replicating a historic study using a quasi-experimental research design. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Business Emerald Publishing

Have changes in audit standards altered client perceptions of auditors?

American Journal of Business , Volume 36 (2): 19 – Jun 4, 2021

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1935-5181
DOI
10.1108/ajb-01-2020-0008
Publisher site
See Article on Publisher Site

Abstract

Changes in external auditing over four decades motivates a historical investigation of how client employees' perceptions of auditors have changed across this period.Design/methodology/approachThis paper uses a longitudinal quasi-experiment to compare current client employees' perceptions of the auditor with results from 1972.FindingsChanges in client employees' perceptions of the audit, its usefulness and of auditor-client conflict suggest increases in auditor independence. However, this paper also finds that despite decades of efforts to strengthen auditor independence and skepticism, the primary analogy client employees apply to the external auditor remains “consultant”.Practical implicationsThe findings contribute to the discussion of whether regulatory and standard changes in the audit environment have changed aspects of client employees' perceptions of auditors.Originality/valueThe paper contributes by presenting a unique approach to partially replicating a historic study using a quasi-experimental research design.

Journal

American Journal of BusinessEmerald Publishing

Published: Jun 4, 2021

Keywords: Audit clients; Audit history; Audit regulation; Audit standards; Replication

References