What's Happening?
A study published in Contemporary Accounting Research has found that rude behavior by clients can negatively affect audit quality and auditor judgment. The research involved an experiment with 114 senior
auditors, examining the impact of client incivility on professional judgment. Findings indicate that client rudeness can lead auditors to back off from challenging aggressive accounting choices, potentially compromising audit quality. The study also explored coping mechanisms, suggesting that active coping strategies, such as involving a senior colleague, can mitigate the adverse effects of client incivility.
Why It's Important?
The study highlights the importance of client-auditor relationships in maintaining audit quality. Negative interactions can lead to compromised judgment and reduced effectiveness in challenging aggressive accounting practices. This underscores the need for audit firms to address client behavior and support auditors in managing difficult interactions.
What's Next?
Audit firms may consider implementing training programs to equip auditors with strategies for handling client incivility. Encouraging open dialogue and providing support for auditors facing challenging situations could enhance audit quality and professional well-being.
Beyond the Headlines
The findings raise broader questions about workplace culture and the impact of interpersonal dynamics on professional performance. Addressing client incivility could lead to improved workplace environments and better outcomes for both auditors and clients.
