Do the big four satisfy the needs and expectations of their clients in the provision of non audit services?

Abstract

The recession and current unfolding economic scandals have caused many businesses to become apprehensive and cautious with the money they spend and the service providers they chose. Accounting/auditing firms in particular are under severe scrutiny from the Irish and global media with regard to the detection of fraud and misappropriation of financial statements of their clients. As a result, non audit services provided by accounting firms are becoming increasingly popular with their clients as it is felt that these services can provide further assurance surrounding their financial statements. However, whilst trying to provide these non audit services and remain under scrutiny it is very difficult for accounting firms to maintain their client base and provide the services at a standard that is satisfactory to the client. There is a lack of empirical studies throughout the literature that match the provision of non audit services provided by accounting firms. Further, there are very few up to date studies that investigate how to meet the needs and expectations of clients whilst trying to narrow the expectation gap between the customer and the service provider. This dissertation provides a practical knowledge investigating the use of non audit services by PLCs provided by the Big Four whilst gaining an understanding as to whether or not the Big Four meet the needs and expectations of their clients. A conceptual framework based on the literature review has been developed. Further, it examines how the PLCs rate the use of these services provided and whether their needs and expectations are satisfied. The dissertation concludes that PLCs utilise non audit services on a regular basis and are satisfied with these services. However, at present they wish to receive the same standard of service at a much reduced price.