Fee Structure And Other Factors Impacting Client Perceived Satisfaction With Management Advisory Services

The accounting profession continually must strive to maintain its reputation for high integrity and high client satisfaction with the services it provides.  Client perceptions of satisfaction regarding the consulting services provided may affect this reputation.  While several studies have addressed factors impacting audit cost and quality, no known study has investigated factors impacting client satisfaction with MAS cost and quality.  The primary objectives of this study are to identify the association between:  (1) MAS satisfaction measures and fee structure type (i.e., fixed fee dollar amount, fixed fee within a range, or hourly rate), (2) MAS satisfaction measures and cost overruns, and (3) MAS satisfaction measures and the provider of that service (i.e., incumbent versus non-incumbent audit firm).  Initial findings include that fee structure does not significantly influence client MAS satisfaction; however, clients are less satisfied with MAS when the final fee is greater than the initial estimate, and with MAS provided by the non-incumbent audit firm.  Implications of these results are also discussed