Prioritizing Efficiency Improvement Actions for Inefficient Audit Firms Using an Integrated Data Envelopment Analysis and Wasserman Interaction Matrix Approach

Mohammad   Aliari; Mehdi Dasineh; Hojjatollah Salari; Hamid  Rostami Jaz

Authors

Mohammad Aliari Department of Accounting, B.A.C, Islamic Azad University, Bandar Abbas, Iran. Author https://orcid.org/0009-0008-2309-195X
Mehdi Dasineh Department of Accounting, B.A.C, Islamic Azad University, Bandar Abbas, Iran. https://orcid.org/0000-0002-4017-2996
Hojjatollah Salari Department of Accounting, B.A.C, Islamic Azad University, Bandar Abbas, Iran. Author https://orcid.org/0000-0002-4460-4944
Hamid Rostami Jaz Department of Accounting, B.A.C, Islamic Azad University, Bandar Abbas, Iran. Author https://orcid.org/0009-0001-6019-9328

Keywords:

Data Envelopment Analysis (DEA), Wasserman Interaction Matrix, Pareto analysis, content validity (CVR and CVI), prioritization, audit firms

Abstract

This study aims to bridge the gap between objective inefficiency diagnosis and operational prescription by designing and testing an integrated framework for prioritizing improvement actions in inefficient audit firms. The study is applied in purpose and was conducted using a sequential mixed-methods design. In the quantitative phase, the efficiency of nine audit firms serving listed companies was evaluated using a window-based Slacks-Based Measure (SBM) model, and critical units were identified through Pareto analysis. In the qualitative phase, an initial list of causes and actions was extracted through interviews and validated using Lawshe’s and Waltz and Bausell’s methods (CVR/CVI). The causes were then prioritized using the Analytic Hierarchy Process (AHP), and the final priorities of improvement actions were determined using the Wasserman Interaction Matrix method. The quantitative findings indicated that the dominant pattern of inefficiency was a “severe output shortfall.” The qualitative analysis identified six valid causes and nine valid actions. According to the AHP results, “weakness in marketing strategy” was the most important cause. The final Wasserman roadmap revealed that “developing an aggressive and targeted marketing plan,” as a leverage action with the highest driving power and a relatively moderate level of dependence, represents the absolute priority and the starting point for transformation. In contrast, actions such as reengineering internal processes were assigned the lowest priority. The study demonstrates that the principal challenge lies in weaknesses in the business model. The solution requires a paradigm shift from cost management to value management and an immediate focus on strategic, outward-looking leverage actions. The proposed framework provides managers with an operational roadmap extending from “diagnosis” to “prescription.”

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