Abstract

This paper examines the effect of audit tenure and audit rotation on audit quality. This study also examines whether this effect of the rotation is different between the Big 4 and non-Big 4 audit firm. This research was conducted in Indonesia, which is one of the few countries that not only implementing audit partner rotation but also mandatory audit firm rotation. However, in 2015, the mandatory audit firm rotation in Indonesia was abolished. The results show that the relationship between the tenure of auditor and audit quality is not significant. Audit firm rotation positively impacts audit quality, and the positive impact is lower in Big 4. In non-Big 4, audit partner rotation has no effect on audit quality, but audit firm rotation could improve audit quality. Meanwhile, in Big 4, audit partner rotation is sufficient to improve audit quality because they have sufficient partners to perform a quality review. From this study, the Indonesian government can consider the urgency to reimpose the mandatory audit firm’s rotation or make a policy of the need to merge small non-Big 4 audit firms to increase the number of audit partners, and it will result in better inter-partner review processes to produce higher-quality audits.

摘要

本文研究了审计任期和审计轮换对审计质量的影响。这项研究还研究了四大会计师事务所和非四大会计师事务所轮换的影响是否不同。这项研究是在印度尼西亚进行的，印度尼西亚是为数不多的不仅实施审计伙伴轮换而且实施强制审计公司轮换的国家之一。但是，在2015年，印度尼西亚的强制性审计事务所轮换制被废除了。结果表明，审计师任期与审计质量之间的关系不显着。审计事务所的轮换对审计质量产生积极影响，在Big 4中，正面影响较小。在非Big 4中，审计合伙人的轮换对审计质量没有影响，但是审计事务所的轮换可以提高审计质量。同时，在Big 4中 审计伙伴轮换足以提高审计质量，因为他们有足够的伙伴来执行质量审核。根据这项研究，印尼政府可以考虑迫切需要重新启动强制性审计事务所的轮换，或者制定一项需要合并小型非四大审计事务所以增加审计合伙人数量的政策，这将使内部审计机构之间更好地相互合作。合作伙伴审核流程以进行更高质量的审核。