Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4

Autor: Dwi Martani, Nur Aulia Rahmah, Fitriany Fitriany, Viska Anggraita
Jazyk: angličtina
Rok vydání: 2021
Předmět:
Zdroj: Cogent Economics & Finance, Vol 9, Iss 1 (2021)
Druh dokumentu: article
ISSN: 2332-2039
23322039
DOI: 10.1080/23322039.2021.1901395
Popis: This paper examines the effect of audit tenure and audit rotation on audit quality. This study also examines whether this effect of the rotation is different between the Big 4 and non-Big 4 audit firm. This research was conducted in Indonesia, which is one of the few countries that not only implementing audit partner rotation but also mandatory audit firm rotation. However, in 2015, the mandatory audit firm rotation in Indonesia was abolished. The results show that the relationship between the tenure of auditor and audit quality is not significant. Audit firm rotation positively impacts audit quality, and the positive impact is lower in Big 4. In non-Big 4, audit partner rotation has no effect on audit quality, but audit firm rotation could improve audit quality. Meanwhile, in Big 4, audit partner rotation is sufficient to improve audit quality because they have sufficient partners to perform a quality review.
Databáze: Directory of Open Access Journals
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