Auditors’ self-actualization and ability to resist client pressure: Evidence from Canada

Abstract

This paper investigates the relationship between auditors’ self-actualization, their commitment to independence, and their resistance to client pressure in a situation involving auditor-client negotiation. This is the first study to examine auditor self-actualization in an auditor-client negotiation context. It is based on a mail survey of Canadian Big Four audit partners with a final sample of 136 partners. The results show a relationship between auditors’ self-actualization, their independence commitment, and their resistance to client pressure. This study contributes to the literature by identifying the mediating role of auditor independence commitment in the relationship between auditor self-actualization and auditor resistance to client pressure. These findings may encourage audit firms to find ways to improve employee self-actualization through better work conditions and work-life balance. The study also finds that auditors have a strong commitment to independence.