Abstract:
In the context of auditing, the quality of service provided by audit firms is a very
important issue when signs of dissatisfaction with the services arise. In today, quality
of services is an important element for enhancing customer satisfaction and customer
loyalty. Service quality is the major force for business sustainability, it is recognized
that high quality service is essential for the success of the firms. The main objective
of this study is to examine the relationship between service quality, client satisfaction
and client loyalty towards audit firms in Sri Lankan companies. In order to
accomplish the objective of the study, data were gathered from primary source using
a standard questionnaire. The simple random sampling technique was used and
questionnaires were sent to 100 randomly selected companies in Sri Lanka who used
and received audit service from audit firms in Sri Lanka. The mediating effect of the
client satisfaction is separately examined with the client satisfaction and the client
loyalty. Regression, Descriptive Statistic and correlation analysis were used as the
data analysis tools of this study. According to the results of the study, client
companies were satisfied with the tangible dimension but were dissatisfied with the
other four dimensions. Customer satisfaction was found to partially mediate the
relationship of reliability and customer loyalty.
