The international debate over mandatory auditor rotation: a conceptual research framework

Catanach, Anthony H.; Walker, Paul L.

doi:10.1016/s1061-9518(99)00004-x

Cited by 54 publications

(28 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The issue tends to resurface as a major audit failure of a corporation collapses (Catanach & Walker, 1999).…”

Section: Audit Rotationmentioning

confidence: 99%

Auditor Independence and Mandatory Auditor Rotation in Jordan

Al-Khoury¹,

Ali²,

Al-Sharif³

et al. 2015

IBR

View full text Add to dashboard Cite

Purpose: The purpose of this study is to test the relationship between auditor rotation and the level of auditor independency, and to investigate, the impact of auditor rotation, audit fees, audit tenure and the relationship with client on the auditor independency in Jordanian audit firms. Furthermore, to identify the reasons behind rotating the auditor and the advantages/disadvantages of auditor rotation.Design/methodology/approach: The study has been carried out through a questionnaire survey that aimed to collect data about the auditor independency in Jordan, and through a developed model to test the mandatory auditor rotation in the Jordanian audit firms. Findings:After defining the four independent main variables of the auditor independency (auditor-client relationship, audit tenure, audit fees, and mandatory auditor rotation). The findings of the study revealed that there is a significant positive relationship between the auditor independency and auditor-client relationship and mandatory rotation. A negative one with the audit fees and there is no relationship with audit tenure. Research limitations/implications:This paper has some limitations such as, some audit firms refused to allow researchers to distribute the questionnaire which is not familiar in Jordan.Originality Value: This paper contributes to the understandings of the nature and characteristics of the auditor independency by empirically exploring the nature and characteristics of mandatory auditor rotation in Jordan.

show abstract

“…The issue tends to resurface as a major audit failure of a corporation collapses (Catanach & Walker, 1999).…”

Section: Audit Rotationmentioning

confidence: 99%

Auditor Independence and Mandatory Auditor Rotation in Jordan

Al-Khoury¹,

Ali²,

Al-Sharif³

et al. 2015

IBR

View full text Add to dashboard Cite

show abstract

“…H01: Auditor reputation does not influence auditor rotation. Kefee et al 1994, Ragunathan et al 1994, state that the existence of rotation can decrease audit failure, push client to adopt conservative accounting practice, and produce more complete reporting (OCA 1994in Catanach Jr. et al 1999). …”

Section: Auditor Reputation On Auditor Rotationmentioning

confidence: 99%

The effects of auditor reputation, financial condition, and potential intensive economy on artificial auditor rotation

Junaidi¹,

Hartadi²,

Yurianto³

et al. 2015

JEBAV

View full text Add to dashboard Cite

show abstract

“…In fact, many European countries have adopted mandatory auditor rotation as a solution to independence (Buijink, Maijoor, Meiwissen, and Witteloostuijn 1996). 4 See Catanach and Walker (1999) for a detailed discussion about the world-wide debate of mandatory auditor rotation. Catanach and Walker (1999) also proposes that a complete examination of auditor rotation should consider the interactions among auditor tenure, audit quality (which is further affected by auditor's ability to detect misstatements and fraud and professional ethics in performing audit procedures), the economic incentives of providing auditing services, and audit market structure.…”

Section: Raghunandan 2003)mentioning

confidence: 99%

“…4 See Catanach and Walker (1999) for a detailed discussion about the world-wide debate of mandatory auditor rotation. Catanach and Walker (1999) also proposes that a complete examination of auditor rotation should consider the interactions among auditor tenure, audit quality (which is further affected by auditor's ability to detect misstatements and fraud and professional ethics in performing audit procedures), the economic incentives of providing auditing services, and audit market structure. See Dopuch, King, and Schwartz (2001) for a discussion of the current debate of mandatory rotation and auditor independence in the U.S. 5 Schwartz (1997) emphasizes the determination of damage loss itself and concludes that a damage measure that is independent of the actual investment together with a strict liability regime will motivate the auditors to exert the socially optimal effort level and induce the socially optimal level of investment.…”

Section: Raghunandan 2003)mentioning

confidence: 99%

Legal Regimes, Damage Apportionment Rules, and Auditor Independence - Theory and Experimental Evidence

2004

SSRN Journal

View full text Add to dashboard Cite

The international debate over mandatory auditor rotation: a conceptual research framework

Cited by 54 publications

References 13 publications

Auditor Independence and Mandatory Auditor Rotation in Jordan

Auditor Independence and Mandatory Auditor Rotation in Jordan

The effects of auditor reputation, financial condition, and potential intensive economy on artificial auditor rotation

Legal Regimes, Damage Apportionment Rules, and Auditor Independence - Theory and Experimental Evidence

Contact Info

Product

Resources

About