Is the Combination of Managerial Grid Thoery, Attraction-Selection-Attrition Framework and Agency Theory Able to Predict Audit Service Demand in GCC Region?

  • Khaled Salmen Aljaaidi

Abstract

Although demand for audit quality in the GCC has increased recently due to the incremental economic boom and new regulatory and institutional reforms, concerns still exist regarding how companies in the GCC change their incumbent auditors and select new ones. In a broad sense, these concerns are expected to influence the audit market structure for audit service demand. The culture of audit clients is demonstrated to influence the auditor choice decision. Using the frameworks of the managerial grid theory, attraction-selection-attrition and agency theory, the effectiveness of the monitoring function and of providing advice to the board of directors is increased by the inclusion of foreign nationals and local citizens with international experiences. This, consequently, may lead to a low frequency of auditor change and a higher demand for audit quality. Thus, the aim of this paper is to suggest a new theoretical explanation of nationality as a cultural dimension with audit quality using an integration of behavioral and economic theories' frameworks; the managerial grid theory, attraction-selection-attrition and agency theory.

Published
2020-05-01
How to Cite
Khaled Salmen Aljaaidi. (2020). Is the Combination of Managerial Grid Thoery, Attraction-Selection-Attrition Framework and Agency Theory Able to Predict Audit Service Demand in GCC Region?. International Journal of Advanced Science and Technology, 29(06), 5250 - 5261. Retrieved from https://sersc.org/journals/index.php/IJAST/article/view/19585