Impact of partner change on audit quality

an analysis of partner and firm specialisation effects

Neal Arthur, Medhat Endrawes, Shawn Ho

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

This study investigates the impact of audit partner rotation on audit quality andwhether industry specialisation moderates such a relationship. The results of this study show that audit partner rotation can enhance audit quality but only when both the incoming audit partner and the audit firm are industry specialists. The results of the study provide valuable insights into the effectiveness of audit partner rotation and auditor industry specialisation practices, and their impact on audit quality. The results have implications for the professionas well as regulators regarding audit partner and audit firm industry specialisation. This is the first study toexamine the moderating effect of industry specialisation on the auditor rotation–audit quality relationship at the partner level. The introduction of industry specialisation as a moderating factor provides additional insights into the auditor rotation–audit quality relationship at the partner level.
Original languageEnglish
Pages (from-to)368-381
Number of pages14
JournalAustralian Accounting Review
Volume27
Issue number4
Early online date2017
DOIs
Publication statusPublished - Dec 2017

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