Five Relationship Challenges Keeping Audit Firms from Growing Sustainably

In this second installment of a three-part series focused on the relationship challenges faced by accounting firms, I want to highlight audit firms, particularly small and mid-sized ones, confronting a paradox: their work is crucial, yet their relationships often feel fragile. Clients perceive audits as a cost of doing business—necessary but unappreciated. Regulators increase pressure, and teams are stretched thin. Amid this complexity, something often gets overlooked: the relationship.

In Relationship Economics®, I contend that relationships are strategic, measurable, and leadable. In a profession where trust, independence, and clarity are essential, relationships aren't just optional—they’re your lasting differentiator.

 In conversations through the Avnir Beta Design Partner program, it’s clear that audit firms often struggle with five recurring relationship challenges. Here's what they are—and how to transform each into a competitive advantage:

1. Compliance Overload: When Processes Crowd Out People

Audit work is guided by standards—GAAS, PCAOB, risk matrices, and tick-boxes. However, when firms become so focused on technical accuracy that they lose sight of client perception and experience, they undermine their own value.

 Yes, independence is non-negotiable. However, being independent doesn’t mean being indifferent. Every audit engagement is an opportunity to build credibility, not merely deliver compliance. 

Shift your mindset from "here’s what we found" to "here’s what this means." Interpret results in a way that is useful, contextual, and insightful. Clients desire confidence, not just clearance.

Action idea: Include a “Management Insights Memo” as a deliverable. It’s not part of the formal report, but it provides context, risk narratives, and recommendations that clients remember. 

2. The One-Contact Risk: Engaging the Ecosystem

Most auditors mainly interact with the controller or finance lead. However, audit implications extend throughout the organization—from operations to IT to the board. Failing to recognize this larger stakeholder ecosystem restricts your impact—and your growth potential.

Relationship Mapping helps audit teams identify those with influence: internal auditors, procurement heads, CIOs, and board members. These individuals shape perceptions and influence vendor decisions. You may never audit their work, but you should understand their expectations.

Best practice: Hold a short pre-audit stakeholder roundtable. Inquire with department heads about the challenges they encounter and how increasing transparency could assist them. Then customize your engagement accordingly.

3. Technology Without Touch: Losing Humanity in the Name of Efficiency

Audit automation is changing the industry. Data analytics, sampling software, and remote audit tools have improved efficiency—but at a cost: relational distance.

Firms that overly digitize risk becoming faceless. Clients don’t recall the report delivery system—they remember the conversation that helped them sleep better at night.

 Balance the screen with the scene. Create space for client dialogue—on-site when possible, virtual but personal when not. Ask clarifying questions. Debrief. Human connection builds trust.

 Insight to apply: Use your data to enhance engagement. Don’t just flag anomalies—contextualize them. “This pattern is unusual compared to industry peers; let’s explore why.” 

4. Talent Turnover: When Continuity Breaks Down

Clients feel anxious when they encounter new faces each year. Their familiar partner is replaced, and the senior who understood their systems is no longer present. Audit turnover undermines confidence, even if the quality remains high. This isn't just a staffing issue; it's a relational one. Firms need to develop continuity strategies to maintain trust even when teams change.

Practical step: Establish relationship transition plans. Keep “relationship notes” alongside audit workpapers. Ensure new team members are informed about client expectations, pain points, and communication preferences—not just account balances. 

5. Independence ≠ Silence: Building Trust Without Compromise

Audit professionals sometimes confuse independence with disengagement. While auditors can’t give “advice,” that doesn’t mean you can’t build trust, provide perspective, and communicate value. Trust is built on transparency, responsiveness, and insight. Clients value auditors who respectfully challenge assumptions and clearly explain their rationale.

In Relationship Economics®, I introduce the concept of Return on Relationships (RoR)—not merely how much a client pays you, but also how much they trust you, refer you, and advocate for you. RoR is highest in firms that blend technical integrity with relational intentionality.

Idea to implement: After the audit, invite the CFO or the audit committee chair to a conversation aimed at building trust. Ask: “How did we show up this year? What could we do better—not just in audit quality, but in client experience?”

Relationships Are the Future of Audit

In an industry where regulations change, technology evolves, and pressure increases, relationships remain your firm’s most enduring differentiator. Small and mid-sized audit firms don’t have to compete on size or price. You can—and must—compete on relational capital. When clients feel acknowledged, appreciated, and comprehended, they stay. When stakeholders trust your team, they refer. And when your team is engaged, they grow with you.

Want to Map and Strengthen Your Firm’s Key Relationships?

 Join the Avnir Early Access Partner Program—a comprehensive platform that allows audit leaders to visualize relationship ecosystems, track engagement, reduce key-person risk, and build deeper trust with clients and teams. Learn more at www.avnir.com