TY - JOUR
AU - Fearnley, Stella
AB -  Abstract This paper explores the importance of audit firm characteristics and the factors motivating auditor change based on questionnaire responses from 210 listed UK companies (a response rate of 70%). Twenty-nine potentially desirable auditor characteristics are identified from the extant literature and their importance elicited. Exploratory factor analysis reduces these variables to eight uncorrelated underlying dimensions: reputation/quality; acceptability to third parties: value for money: ability to provide non-audit services: small audit firm: specialist industry knowledge; non-Big Six large audit firm: and geographical proximity. Insights into the nature of ‘the Big Six factor’ emerge. Two thirds of companies had recently considered changing auditors; the main reasons cited being audit Ice level, dissatisfaction with audit quality and changes in top management. Of those companies that considered change. 73% did not actually do so. the main reasons cited being fee reduction by the incumbent and avoidance of disruption. Thus audit fee levels are both a key precipitator of change and a key factor in retaining the status quo. 
TI - The Importance of Audit Firm Characteristics and the Drivers of Auditor Change in UK Listed Companies
JF - Accounting and Business Research
DO - 10.1080/00014788.1995.9729912
DA - 1995-09-01
UR - https://www.deepdyve.com/lp/taylor-francis/the-importance-of-audit-firm-characteristics-and-the-drivers-of-BotpKf7WRr
SP - 227
EP - 239
VL - 25
IS - 100
DP - DeepDyve
ER -