IDEAS home Printed from https://ideas.repec.org/p/mil/wpdepa/2012-02.html
   My bibliography  Save this paper

The determinants of audit clients’ willingness to cooperate

Author

Listed:
  • Richard FONTAINE

    ()

  • Luciano PILOTTI

    ()

Abstract

The objective of this research is to determine what motivates clients to cooperate and to remain at arm’s length (independent) with their financial auditors. It was found that clients prefer a more relational approach (RA) than a transactional approach (TA) with their financial auditors (Fontaine and Pilote, 2011). More precisely, the audit client wants to cooperate with the auditor yet also wants to remain distant (at arms’ length). What is not known is what determines (causes) the client’s preference to cooperate and to remain at arm’s length. Investigating the determinants of the audit client’s willingness to cooperate is the center of on-going debates by audit academics and professionals. The problem is that an overly cooperative relationship has been considered a threat to auditor independence. We seek to determine what influenced the clients’ preference to be both cooperative and at arm’s length with their auditor. To achieve the objective of this research, we will rely on a new theoretical framework that is a modified version of a Relationship Marketing model, known as the Commitment-Trust model (Morgan and Hunt, 1994). The contribution of this study should extend beyond the accounting domain since the financial statement audit has important value to society. The financial audit has been referred to as a social phenomenon that exists because certain groups cannot obtain information or reassurance for themselves (Flint, 1988).

Suggested Citation

  • Richard FONTAINE & Luciano PILOTTI, 2012. "The determinants of audit clients’ willingness to cooperate," Departmental Working Papers 2012-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  • Handle: RePEc:mil:wpdepa:2012-02
    as

    Download full text from publisher

    File URL: http://wp.demm.unimi.it/files/wp/2012/DEMM-2012_002wp.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. M. Paulin & R.J. Ferguson & Marielle Audrey Payaud, 2000. "Effectiveness of relational and transactional cultures in commercial banking : putting client-value into the competing values model," Post-Print halshs-00650008, HAL.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2012-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEMM Working Papers). General contact details of provider: http://edirc.repec.org/data/damilit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.