Auditor-Client Alignment through competitive priorities - Evidence from Brazil

Resumo

The prudently chosen competitive priorities by the management do subsidize organisations’ strategies toward goal congruence.  This study investigates the auditor-client strategic alignment based on competitive priorities in the Brazilian environment.  The big-four independent audit firms, like other organisations, aim at profitability and optimisation of resource while minimising risks.  This being the cornerstone for tasks, standards, guidelines, and knowledge statements put together with quality to exceed client’s expectation.  Somehow, it has to do with the audit partners playing the tune dictated by the firm’s methodology to enhance preparation for questions put forward to them by their colleagues on the relationship held with their clients. The study tends to bridge the gap between academic research and practice, particularly when it touches some of the key players of corporate governance, auditor and client. It is interventionist in nature and tends to produce thought leadership information to improve business decision-making, interpret complex questions affecting auditor-client relationship and finally establish a fact base for auditors, auditees, regulatory agencies and professional organizations. The study is exploratory in nature and tends to give answers to questions on:  whether the independent audit firm is aligned with their clients based on competitive priorities?  The study is composed of a non probabilistic purposeful sample of 8 independent auditors and their respective 8 clients. Data have been collected through unstructured questionnaires implemented in paper-and-penciland have been treated in two ways:  a) Content analysis of qualitative data automated through NVivo that enhanced categorization and classification of data, aiming at observing the expressions and symbols that were represented therein, and b) Descriptive analysis of some structured questions furnished by the respondent.  Thus, based on our analysis, we conclude for the association of competitive priorities more valued by the auditors aligned strategically with that of the clients in Brazilian environment.