Value Co-Creation in Auditing: Evidence from Auditors, Auditees and Financial Analysts

• In Event: Misstatement Risk and Value Creation

Abstract

Using a multi-method approach, this study embraces the idiosyncratic nature of audit services by focusing on the value creation paradigm derived from the service marketing and business management literature (Saarijärvi, Kannan, and Kuusela 2013). We show that auditors and auditees (audit committee members, CFOs and internal auditors) experience three different levels of internal value: limited value creation; value facilitation; and value co-creation, in which the extent and type of interactions drive the level of value (co-) created. Further, we document that financial analysts perceive audited financial statements as more reliable when the auditees experience value creation. Collectively, our results suggest that value co-creation may be beneficial for both the internal and external value of the audited financial statements.

Authors

• Damien Lambert, ESSEC Business School

• Roger Meuwissen, Maastricht University

• Chrystelle Richard, Essec Business School

• Ann Vanstraelen, Universiteit Maastricht