The Client’s View of Auditor Skepticism: Surveys of Client-Auditor Dyads in Germany

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Abstract

This study uses data from a larger qualitative project with client-auditor dyads in Germany (Aschauer et al. 2013) to examine trait scepticism in a field setting. We compare the client’s view of the auditor’s trait skepticism to the auditor’s self-report. We also examine whether client views of their auditor’s level of skepticism varies based on audit firm tenure, partner tenure, audit firm size (Big4 or NonBig4), or the percentage of fees derived from nonaudit services. We find that client perceptions of their auditor do not line up with auditor self-reports of skepticism and explore why not. Our results show that non-audit fees decrease perceived skepticism but firm tenure and partner tenure does not. Big4 auditors are viewed as more skeptical by their clients but auditors from Big4 firms rate themselves lower on skepticism than their peers at NonBig4 firms.

Authors

• Ewald Aschauer, Vienna University of Economics and Business

• Carol Springer Sargent, Macon State College