Audit Client Satisfaction and Engagement Profitability

  • Author / Creator
    Hoang, Kristina Jane
  • This study examines client satisfaction and engagement profitability for a Big 4 audit firm. I obtain proprietary client data from the firm’s national office, including satisfaction survey responses and profitability (realization) rates. I examine the roles of service quality dimensions that are distinguished by the audit firm and its clients. In my models of satisfaction ratings and realization rates, I control for abnormal discretionary accruals, as well as client and engagement characteristics, such as client size, financial performance, industry, and billed hours. I find that audit clients’ satisfaction is determined primarily by their perceptions of the audit firm’s service customization and responsiveness. Engagement profitability is positively associated clients’ with perceptions of communications effectiveness. The assignment of expert audit personnel contributes to engagement profitability, but not to client satisfaction.

  • Subjects / Keywords
  • Graduation date
    Spring 2013
  • Type of Item
  • Degree
    Doctor of Philosophy
  • DOI
  • License
    This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.
  • Language
  • Institution
    University of Alberta
  • Degree level
  • Department
  • Specialization
    • Accounting
  • Supervisor / co-supervisor and their department(s)
  • Examining committee members and their departments
    • Bill Foster (Management, University of Alberta - Augustana Campus)
    • Roy Suddaby (Strategic Management and Organization)
    • Heather Wier (Accounting, Operations and Information Systems)
    • Robert Knechel (Fisher School of Accounting, University of Florida)
    • Maier, Michael (Accounting, Operations and Information Systems)