THE RELATION OF AUDITOR TENURE TO AUDITQUALITY: EMPIRICAL EVIDENCE FROM THE GERMANAUDIT MARKET

Journal of Governance and Regulation

关键词: AuditTenure;    Auditor Independence;    Auditor Expertise;    Audit Quality;    German Audit Market;   

DOI  :  10.22495/jgr_v2_i1_p2

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

This study investigates whether andhow the length of an auditor-client relationship affects audit quality. Using a sample of 1,071 firm observations of large listed companies for the sample period of 2005 to 2011, the study is one of the first to empirically analyze this auditing issue forthe German audit market. The empirical results demonstrate that neither short term nor long term audit firm tenure seems to be a significant factor with regard to audit quality in Germany.In the wake of the ongoing discussion in the European Union regarding the optimal audit tenure length for the quality of the conducted statutory audits, our findings do not support the idea of a mandatory audit firm rotation rule.

【 授权许可】

CC BY-NC