Currently, there is no formal recommended structure, particularly regarding the client’s ethics, for determining whether an external auditor should continue the business relationship with an audit client. This statement is not meant as a criticism, but rather as the backdrop for proposing that...

A psychological contract (PC) reflects the relationship(s) between employees and their employers and involves a personal interpretation of the obligations and rewards between those parties. Within the auditing profession, while the actual “employers” of auditors are the auditing firms that...