The Effects of Audit Firm Size, Audit Tenure, and Audit Rotation on Audit Quality

Salman, Kautsar Riza; Setyaningrum, Bety

doi:10.52728/ijtc.v4i1.636

Cited by 3 publications

(1 citation statement)

References 10 publications

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“…According to Karno et al (2022) audit tenure refers to the length of time an auditor has been providing audit services to a particular client. The impact of tenure on AQ has been a topic of discussion for many years (Pesudo and Nugroho, 2022;Priyanti and Dewi, 2019;Salman and Setyaningrum, 2023). Some studies suggest that longer tenure can lead to a decline in audit quality due to the factors such as auditor complacency, reduced independence, and familiarity with the client (Jadiyappa et al, 2021).…”

Section: Audit Tenure and Audit Qualitymentioning

confidence: 99%

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

Mvunabandi,

Maama

2023

IJEFI

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Sub-Saharan Africa (SSA) is a region characterised by unique challenges related to weak governance structures, inadequate regulatory frameworks, and limited resources. These challenges pose significant risks to audit quality, as they can compromise the independence, objectivity, and professional judgment of auditors. Moreover, the ethical values of the region can also have a significant impact on audit quality, as they shape the behaviour and attitudes of auditors and the firms they audit. The aim of this study was to investigate the impact of ethics on audit quality among firms in SSA. The study uses a sample of 323 firms from 12 sub-Saharan African countries, covering the period from 2012 to 2021. The research design is quantitative, employing a panel data approach and regression analysis. The econometric model used to estimate the impact of ethics on audit quality was based on variables such as audit quality, ethical values, tenure, audit size, auditor reputation, firm size, return on assets, ownership structure and board independence. The data was collected from the World Economic Forum, Bloomberg Database and other sources. Regression results demonstrated a negative and insignificant impact of ethical values on audit quality. However, the tenure of auditors had a positive impact on audit quality. The results of this study suggest the importance of promoting ethical behaboiur and strengthening ethial standards in auditing profession in SSA.

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Section: Audit Tenure and Audit Qualitymentioning

confidence: 99%

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

Mvunabandi,

Maama

2023

IJEFI

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The effect of personality type, audit firm size and age on the professional judgment of Iraqi auditors

Moradi,

Salehi,

Mahdi Balah

2024

JIABR

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Purpose This study aims to investigate the factors affecting the professional judgment of auditors in Iraq (personality type, audit firm size and age). Design/methodology/approach The statistical population includes 1,750 participants, and the sample size was determined to be 309 participants using Cochran’s sampling formula. The required data has been collected through a questionnaire. Regression factor analysis, Kolmogorov–Smirnov, t and Friedman(f) tests were used to analyze the variables and examine their relationships. Findings The results show a significant relationship between neuroticism, extroversion, flexibility, agreeableness and conscientiousness and auditors’ professional judgment. No relationship was observed between the size of the auditing firm and professional judgment. The results also showed a significant relationship between seniority and auditors’ professional judgment. Originality/value This study will help increase the knowledge of investors and regulators, providing information to researchers and those interested in auditors’ professional judgment. It can also be a starting point for research in this field. This research investigates the auditor characteristics, including personality traits of auditors, audit firms’ size and age and their impact on auditors’ professional judgment.

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Influence of Audit Firm Attributes on Earnings Management and Audit Quality of Listed Nigeria Manufacturing Firms

Olagunju,

Oluwakayode,

Adenle

et al. 2024

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The influence of audit attributes on earnings management and audit quality was examined in this study. A causal research design was employed in this study. The study population comprises all the quoted manufacturing firms in Nigeria, of which 30 were purposively selected as a sample size from the manufacturing sector covering a period of 12 years ranging from 2010–2021. The data utilized for this study were obtained from the annual reports of the selected firms. Descriptive statistics and panel regression analysis were used to analyse the data. Audit attributes were measured with audit opinion, audit switching and audit tenure, whereas the dependent variables were proxy by discretionary accruals and audit fees. The outcome of the analysis discovered that audit opinion, audit switching and audit tenure all have negative and significant relationships with discretionary accrual evidenced by t-statistics (−2.36, −2.06, −3.24) and p-values of (0.018, 0.004, 0.002) correspondingly. Audit opinion also has a positive significant connection with audit fees. Likewise, audit switching and audit tenure have negative and significant relationships with audit fees, and they are all evidenced by t-statistics of (2.01, −2.70, −2.80) and p-values of (0.004, 0.007, 0.005), respectively. The study concludes that audit attributes are important in determining the extent of earnings management and audit report quality. The study recommends that companies should ensure that the auditor is not biased in his opinion because this will affect the quality of the audit report. Audit tenure and audit switching should also be done as when due.

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The Effects of Audit Firm Size, Audit Tenure, and Audit Rotation on Audit Quality

Cited by 3 publications

References 10 publications

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

The effect of personality type, audit firm size and age on the professional judgment of Iraqi auditors

Influence of Audit Firm Attributes on Earnings Management and Audit Quality of Listed Nigeria Manufacturing Firms

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