An empirical model for root cause analysis in the audit profession

Audit firms conduct root cause analysis (RCA) to learn from errors and enhance future processes. This study aims to improve the effectiveness of these efforts by introducing a root cause taxonomy that categorizes underlying causes and develops a common language within the audit profession. Developed empirically and validated with data from an audit firm in the Netherlands, spanning from 2021 to 2024, the taxonomy includes six categories: Strategy and policy; Systems and procedures; Knowledge and understanding; Time and capacity; Human factors; and Client matters. Our findings reveal that the root causes frequently manifest in conjunction with one another rather than in isolation, indicating interdependencies. While the list of root causes is not exhaustive, this taxonomy offers a structured approach that can enhance consistency within the RCA practice.