Role expectations and agency in the audit tendering process

Abstract

Purpose Tenders are generally considered important in auditing research and practice, and are associated with significant difficulties for the auditing profession, as well as for individual auditors in the context of client relationships. The purpose of this paper is to explore the way auditors respond to complex client expectations related to the audit tendering process. Design/methodology/approach Using a role-theory perspective, the authors analyzed 75 client evaluations of auditors, along with in-depth interviews with high-level auditors. Findings The authors present a theoretical framework of audit tenders that identifies different formal and informal practices auditors may employ in response to evolving client expectations that arise throughout different phases of the tendering process, and elucidate relevant conditions that may enable or impede these practices. Research limitations/implications First, the study reveals that, in the context of auditor-client relationships, expectations cannot be considered stable, but may vary significantly throughout the tendering process. Second, the study indicates that auditors are not only determined by the formal tendering procedures, but are also influenced by their level of agency. Practical implications The framework has practical value by providing individual auditors guidance in managing their client relationships and, further, top management guidance for creating favorable conditions for auditors to meet client needs. Originality/value The findings provide a deeper and more nuanced understanding of the autonomy auditors have in responding to the contemporary pressures exerted on them.

HRM roles in cross culture training provision: insights from Israeli companies

“…Brookfield, 2015), the current study sought to explore HR managers' role enactment in relation to CCT provision and the factors that affect the enactment of these roles, as interpreted by the HR managers. In contrast to traditional functionalist conceptualisation of role theory, our study turned attention to actors' agency (Mantere, 2008;Taminiau and Heusinkveld, 2017) and the behavioural and cognitive/ interpretative aspect of role enactment (Welch and Welch, 2012;Lynch, 2007) thereby contributing to a more nuanced understanding of HR roles than the one offered by prescriptive generic models. Taking Welch and Welch's (2012) roles as a starting point, we identified and described two primary HR roles enacted in the context of CCT provision: a resource broker and policy implementer.…”

“…As the authors emphasise, "a fuller understanding of IHR roles requires consideration of how they are enacted and why they are performed in a certain way" (p. 611), in particular in light of the recognition that HR roles might be enacted differently in relation to different HR issues (Procter and Currie, 1999). This understanding of roles departs from traditional functionalist conceptualisations of role theory which conceive of roles as largely determined by externally placed expectations (Lynch, 2007) and instead highlights actors' choices and agency in role enactment (Mantere, 2008;Taminiau and Heusinkveld, 2017). While it needs to be acknowledged that how HR roles are enacted will "be the result of its interactions [and negotiations] within the organisation" (Procter andCurrie, 1999, p. 1089), the cognitive/interpretative aspect of role enactment by the role holders, here the HR professionals, should not be overlooked (Lynch, 2007;Welch and Welch, 2012).…”

“…In light of empirical evidence that "personnel managers will have different roles in relation to different issues with which they are concerned" (Procter andCurrie, 1999, p. 1078), a more fine grained exploration of specific HR roles in international settings is called for. In line with the argument that "a fuller understanding of roles requires a consideration of how they are enacted and why they are performed in a certain way" (Welch and Welch, 2012, p. 611;O'Brien and Linehan, 2014;Taminiau and Heusinkveld, 2017) in relation to specific issues, it is important to consider not only behaviours, as emphasised in traditional role theory, but also the cognitive/ interpretative dimension of role enactment (Lynch, 2007;Welch and Welch, 2012). Our study, therefore, seeks to explore HR managers' role enactment in relation to CCT provision and the factors that affect the enactment of these roles, as interpreted by the HR managers.…”

Attributes Influencing Clients' Auditor Choices: The Expectation Gaps between Auditors and Board Members

“…The invitation to participate in the survey was sent by the researchers via email directly to 42 named board members, and to contact persons at Big 4 audit firms, and one non-Big 4 audit firm (a "next 10" audit firm with an international network), who distributed the invitation by email to eligible participants (i.e., partners, senior managers and managers) in the respective local offices. We defined partners, senior managers, and managers as eligible participants for the auditor perspective, because these ranks have been found to be commonly involved in audit tenders (Taminiau and Heusinkveld 2017).…”

“…Board members evaluate the proposals handed in by audit firms participating in audit tenders, and the evaluations will be influenced by the weight board members assign to various audit firm attributes. Proposals and presentations during audit tenders provide audit firms with the opportunity to "fine-tune" their offer by highlighting certain attributes (Taminiau and Heusinkveld 2017). Audit firms will highlight those attributes during audit tenders that they expect to be important for board members.…”