Clients' Preferred Relationship Approach with their Financial Statement Auditor

SUMMARY Our published study, “An Empirical Study of Canadian Companies to Determine Clients' Preferred Relationship Approach with Their Financial Auditor” (Fontaine and Pilote 2011), examines the type of relationship that clients prefer to have with their financial auditors. We surveyed 306 Canadian financial executives (clients); in general, clients prefer more of a relational approach (i.e., an ongoing process based on cooperation, communication, and trust) than a transactional approach (i.e., competition and self-interest, resulting in an arm's-length relationship). Further, clients seek information and advice beyond core audit services. However, despite clients' desire for close relationships, they also want to remain at arm's length from their auditor, as required by the auditor's code of ethics. Our study contributes to audit practice by providing direct evidence of client relationship preferences, which could help auditors to enhance client relationships. In addition, evidence of the client's desire to remain at arm's length (i.e., respecting auditor independence) could be of interest to audit practitioners and audit standard setters.