Impact of Auditor and Audit Firm Rotation on Accounting and Audit Quality: A Critical Analysis of the EC Regulation Draft

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Impact of Auditor and Audit Firm Rotation on Accounting and Audit Quality: A Critical Analysis of the EC Regulation Draft. / Velte, Patrick; Stiglbauer, Markus.
In: International Journal of Regulation and Governance, Vol. 1, No. 3, 01.01.2012, p. 7-13.

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@article{61e4a402f80e49da9f81cf084c54f347,
title = "Impact of Auditor and Audit Firm Rotation on Accounting and Audit Quality: A Critical Analysis of the EC Regulation Draft",
abstract = "In a current regulation draft of 2011, the European Commission (EC) plans the mandatory audit firm rotation principally after six years and with regard to a cooling off period of four years toincrease auditor independence. This could complement the internal mandatory rotation (auditor rotation) by the 8th EC directive. The present paper gives a state of the art analysis of the empirical research results with regard to auditor and audit firm rotation. In contrast to the perception of the EC, the majority of the empirical results doesn{\textquoteright}t find evidence for increasedfinancial accounting and audit quality by audit firm rotation. Furthermore, the positive effects of the internal rotation period of seven years and the cooling off period of two years by the 8th ECdirective are not empirically proved yet.",
keywords = "Management studies",
author = "Patrick Velte and Markus Stiglbauer",
year = "2012",
month = jan,
day = "1",
doi = "10.22495/jgr_v1_i3_p1",
language = "English",
volume = "1",
pages = "7--13",
journal = "International Journal of Regulation and Governance",
issn = "0972-4907",
publisher = "Teri Press",
number = "3",

}

RIS

TY - JOUR

T1 - Impact of Auditor and Audit Firm Rotation on Accounting and Audit Quality

T2 - A Critical Analysis of the EC Regulation Draft

AU - Velte, Patrick

AU - Stiglbauer, Markus

PY - 2012/1/1

Y1 - 2012/1/1

N2 - In a current regulation draft of 2011, the European Commission (EC) plans the mandatory audit firm rotation principally after six years and with regard to a cooling off period of four years toincrease auditor independence. This could complement the internal mandatory rotation (auditor rotation) by the 8th EC directive. The present paper gives a state of the art analysis of the empirical research results with regard to auditor and audit firm rotation. In contrast to the perception of the EC, the majority of the empirical results doesn’t find evidence for increasedfinancial accounting and audit quality by audit firm rotation. Furthermore, the positive effects of the internal rotation period of seven years and the cooling off period of two years by the 8th ECdirective are not empirically proved yet.

AB - In a current regulation draft of 2011, the European Commission (EC) plans the mandatory audit firm rotation principally after six years and with regard to a cooling off period of four years toincrease auditor independence. This could complement the internal mandatory rotation (auditor rotation) by the 8th EC directive. The present paper gives a state of the art analysis of the empirical research results with regard to auditor and audit firm rotation. In contrast to the perception of the EC, the majority of the empirical results doesn’t find evidence for increasedfinancial accounting and audit quality by audit firm rotation. Furthermore, the positive effects of the internal rotation period of seven years and the cooling off period of two years by the 8th ECdirective are not empirically proved yet.

KW - Management studies

UR - https://www.mendeley.com/catalogue/4d494409-3d69-3514-9c75-3d10f11f75bf/

U2 - 10.22495/jgr_v1_i3_p1

DO - 10.22495/jgr_v1_i3_p1

M3 - Journal articles

VL - 1

SP - 7

EP - 13

JO - International Journal of Regulation and Governance

JF - International Journal of Regulation and Governance

SN - 0972-4907

IS - 3

ER -

DOI