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Audit Firm Employee Turnover and Audit Quality

Authors: Christophe Van Linden; Marie-Laure Vandenhaute; Aleksandra Zimmerman;

Audit Firm Employee Turnover and Audit Quality

Abstract

This paper examines collective audit firm employee turnover and audit quality. Audit regulators have noted that employee turnover may be a root cause of audit quality issues identified during their inspections. However, there is limited empirical research on the determinants and consequences of collective audit firm employee turnover. We model the determinants of collective employee turnover and examine the effect of expected and abnormal audit firm employee turnover on engagement audit quality for a large sample of Belgian private and public company audit engagements. We find robust evidence for a negative association between employee turnover and audit quality and we find that abnormally high turnover is more detrimental to audit quality than expected turnover. Our contribution is initial empirical archival evidence of the effect of different types of audit employee turnover on engagement audit quality.

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    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
10
Top 10%
Average
Top 10%
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