Does Audit Quality Improve After the Implementation of Mandatory Audit Partner Rotation?

Article OPEN
  • Journal: Journal of Accounting and Management Information Systems, volume 12, issue 2 June, pages 263-279
  • Subject: going-concern opinion, audit partner tenure, distressed companies, mandatory rotation
    • jel: jel:G34 | jel:M42 | jel:M41
    mesheuropmc: health services administration

We investigate whether audit partner tenure and audit quality associations remain significant after the implementation of mandatory audit partner rotation. Carey and Simnett (2006) report a significant negative association between long audit partner tenure and the prope... View more
  • References (45)
    45 references, page 1 of 5

    American Institute of Certified Public Accountants (AICPA) (1992) Statement of Position: Regarding Mandatory Rotation of Audit Firms of Publicly Held Companies, New York: NY AICPA

    Arel, B., Brody, R.G. & Pany, K. (2005) Audit firm rotation and audit quality The CPA Journal 2005, vol. 75, no. 1: 28 39

    Arrunada, B. & Paz Ares, C. (1997) Mandatory rotation of company auditors: a critical examination I,nternational Review of Law and Economics 17: 31 61

    Azizkhani, M., Monroe, G. S. & Shailer, G. S. (2013) Audit partner tenure and cost of equity capital ,Auditing: A Journal of Practice and Theory, vol. 32, no. 1: 183 202

    Beck, P., Frecka., T. & Solomon, I. (1988) A model for the market for MAS and audit service: knowledge spillovers and auditor auditee bonding J,ournal of Accounting Literature, vol. 7, no. 1: 50 64

    Boone, J.P., Khurana, I.K. & Raman, K.K. (2008) Audit firm tenure and the equity risk premium ,Journal of Accounting Auditing and Finance, 23: 115 140

    Butterworth, S. & Houghton, K. (1995) Auditor switching and the pricing of audit services ,Journal of Business Finance and Accounting, vol. 22, no. 3: 431 454

    Carcello, J.V. & Nagy, A.L. (2004) Audit firm tenure and fraudulent financial reporting ,Auditing: A Journal of Practice and Theory, vol. 23, no. 2: 55 - 69

    Carcello, J. V., Hermanson, D.R. & Huss, H. F. (1995) Temporal changes in bankruptcy related reporting ,Auditing: A Journal of Practice & Theory, vol. 14(Fall): 133 143

    Carey, P. & Simnett, R. (2006) Audit Partner Tenure and Audit Quality T,he Accounting Review, vol. 81, no. 3: 653 676

  • Related Organizations (4)
  • Metrics
Share - Bookmark