Auditor Tenure and Financial Reporting Fraud : Have the Relations Changed Post Sarbanes-Oxley Act of 2002 ?

Content Provider	Semantic Scholar
Author	Asare, Kwadwo N. Abdolmohammadi, Mohammad
Copyright Year	2017
Abstract	In this study, we investigated how auditor tenure and several related variables of the audit environment, such as the type of auditor (Big-N/other), audit firm tenure, client size, are related to the likelihood of fraudulent financial reporting. The study contributes to the debate on audit firm rotation. While PCAOB (2014) requires that public companies in the U.S. rotate their engagement partners every five years, there is no requirement to rotate audit firms, and there are mixed results in the extant literature on the relation between audit firm tenure and fraudulent financial reporting. For example, Knechel and Vanstraelen (2007) do not find any evidence that tenure is associated with an increase or decrease in audit quality but other researchers find that longer auditor tenure is associated with higher audit quality (e.g., Myers et al., 2003 and Geiger et al., 2002).
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://web.nacva.com/JFIA/Issues/JFIA-2017-No2-3.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article