Auditor-Client Relationship as a Source of Value Addition for Audit Firm: A Descriptive Study of Audit Firm in Sri Lanka

Abstract

Today value-adding activities are more critical than profit-maximizing in an organization, businesses are concern about the value addition to the organization in deep manner. Relationship building with the client chain can be defined as a major source that adds value to the organization. Even though the previous scholars have identified the necessity of value-adding activities in the service sector their focus towards the auditing sector in Sri Lankan context is low. This is a qualitative deductive study sample was selected in purposive sampling among the population of ManagersAssurance, Senior Audit Associates and Audit Associates grade 1 & 2 from Kreston Sri Lanka. Individual interviews, focused group interview and observations were conducted to gather data. Thematic analysis was used to analyze data. Results of the study identified as there is a direct impact between auditor’s commitment, communication effectiveness and audit tenure in order to add value to the audit firm. Further, it recognized that there is a moderate impact between auditor’s perceptions towards the client and value addition. Human beings can follow the above results while interacting with others in their routine. This research limited only to the Sri Lankan context one audit firm other audit firms can implement to their context also.