Mandatory Rotation of Auditors on Audit Quality, Costs and Independence in South-South, Nigeria

Ebimobowei, Appah; Keretu, Oyadonghan James

doi:10.3923/ibm.2011.166.172

Cited by 10 publications

(17 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We therefore argue that this could partly explain the growing support for MAR in the UAE. This finding is consistent with some of the previous studies (e.g., Chi et al, 2009;Daugherty et al, 2012;Ebimobowei and Keretu, 2011;Gates et al, 2006), but unsurprisingly appears to contradict some of the results in other studies (e.g., Ewelt-Knauer et al, 2013;Geiger and Raghunandan, 2002;Ruiz-Barbadillo et al, 2006).…”

Section: Discussion Of Resultssupporting

confidence: 90%

“…Within the finance/accounting profession and the financial media, there has been relatively limited knowledge and a dearth of empirical studies on this question in most developing economies (Adeyemi and Okpala, 2011;Ebimobowei and Keretu, 2011;Firth et al, 2012).…”

Section: Discussionmentioning

confidence: 99%

“…In addition, the existence of market and economic incentives reinforces the motivation for VAR (DeAngelo, 1981;DeFond and Francis, 2005). Considerable research has examined the association between these two forms of AR and AQ, and found mixed results (Cameran, Merlotti, and Di Vincenzo, 2005;Cameran et al, 2016;Chi, Huang, Liao, and Xie, 2009;Ebimobowei and Keretu, 2011;Gates et al, 2006).…”

Section: Audit Rotation Enforceability and Perceived Audit Qualitymentioning

confidence: 99%

“…This perception of UAE auditors is consistent with the views from, and recent actions of the UAE government, which seem to recognize the significance of AR in improving AQ, and decided to enforce AR by imposing MAR (The CFO, 2015;UAE, 2015). This view is based on the belief that AR helps auditors not to lose their independence and/or become less skeptical (Daugherty et al, 2012;Ebimobowei and Keretu, 2011;Turner, 2002).…”

Section: Ar Enforceability and Perceived Aqmentioning

confidence: 99%

“…Concerns have been raised about the effect of AR (or a lack of it) on AI, and the need for regulatory actions such as imposing mandatory auditor rotation (MAR) (Firth, Rui, and Wu, 2012;Johnson et al, 2002). While in recent years many developing countries have implemented laws and regulations that require AR of some sort, the extant literature on the AR-AI-AQ association is arguably still limited (Adeyemi and Okpala, 2011;Azizkhani et al, 2018;Ebimobowei and Keretu, 2011;Firth et al, 2012). There are also only few such studies in the Arab Middle East (e.g., Azizkhani et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

The perceived association between audit rotation and audit quality: evidence from the UAE

Malagila

Bhavani

Amponsah

2020

JAEE

View full text Add to dashboard Cite

PurposeThe purpose of this paper is to explore the perceived association between audit rotation (AR) and audit quality (AQ) using respondents from a sample of audit firms operating in a developing economy, the United Arab Emirates (UAE). The paper addresses the following research question: How do UAE auditors perceive the association between various forms of AR and AQ?Design/methodology/approachThe authors collected perception data from a sample of UAE auditors using a questionnaire, and applied several non-parametric statistical techniques to analyze the data, and to answer five exploratory research questions on the perceived association between various forms of AR and AQ.FindingsThe findings suggest that the UAE auditors in our sample did not perceive the association between individual types of AR and AQ as significantly different, and that AR in general is essential for AQ improvement and enhances trust in the audit process. Similarly, we find more support for the perception that medium audit tenure is associated with a lower impairment effect on auditor independence. Furthermore, we find no significant differences in perception based on gender, but younger/less experienced professionals and professionals in self-employed practices and small audit firms (compared to other demographics) significantly perceived AR enforceability and AT length to be associated with AQ. Our findings help to enrich our understanding of the perceived AR-AQ association in a relatively new context and less researched audit area in a developing economy.Originality/valueAlthough lively debates on the question of AR and AQ within the accounting, finance, investment professions and in the financial media continue, there has been relatively limited knowledge and a dearth of empirical studies on this question in most developing economies. Being the first attempt in the country – the UAE, this study contributes towards addressing this gap in empirical knowledge by exploring the perceived association between various forms of AR and AQ in a developing economy.

show abstract