Increased auditor independence by external rotation and separating audit and non audit duties? - A note on the European audit regulation

Article English OPEN
Velte, Patrick; Eulerich, Marc;
(2015)
  • Publisher: Publishing house "Virtus Interpress"
  • Journal: Journal of Governance and Regulation53-62 (issn: 2220-9352, eissn: 2306-6784)
  • Publisher copyright policies & self-archiving
  • Related identifiers: doi: 10.22495/jgr_v3_i2_p5
  • Subject: Principal Agent Theory | Management studies | Low Balling | Consulting | RotaTion | Expectation Gap | HD58.7-58.95 | /dk/atira/pure/core/keywords/558218865 | Audit Fees | Organizational behaviour, change and effectiveness. Corporate culture | Audit Market Concentration | HG1-9999 | Auditor Independence | Audit Quality | Empirical Audit Research | Finance

The European audit reform contains the implementation of an external mandatory auditor rotation (audit firm rotation) and a separation of audit and non audit duties to increase auditor independence. The central question is, whether these regulation measures are connecte... View more