Purpose

This paper explores how technical constructions of audit practice are influenced by mandatory audit firm rotation (MAFR) regulations. The paper responds to calls for additional research on how external regulation influences audit quality and supplements the predominately quantitative research dealing specifically with firm rotation and its relevance for audit quality.

Design/methodology/approach

Data are collected from South Africa which is the latest jurisdiction to adopt MAFR (from 2017). Detailed interviews with 49 participants comprising 24 audit partners and 25 non-auditors are conducted to explore how MAFR can impact audit quality. For this purpose, audit quality is defined according to a schematic developed interpretively and based on professional auditing standards and the prior research on audit quality.

Findings

There is no guarantee that MAFR will bolster auditors' independence or contribute to a more thorough audit approach. On the contrary, the effort required by incoming audit firms to gain an understanding of new clients coupled with material tendering costs is expected to decrease the profitability of audit engagements with adverse implications for audit quality. A loss of client experience and staff retention challenges may contribute further to a decline in audit quality. There may be some improvements to audit practice when an incumbent firm's work is going to be scrutinised by a new auditor but audit methodologies, including the nature and extent of testing performed, are not expected to change significantly because of MAFR. In this way, the regulation may be a symbolic response to a perceived decline in audit quality and auditor independence rather than part of an effective strategy to encourage more rigorous audit practice for the benefit of the users of financial statements.

Originality/value

The current paper provides one of the first exploratory accountants of how MAFR is expected to impact audit practice and, in turn, audit quality. The research responds to the call for more field-work studies on the mechanics of the audit process by engaging directly with practitioners instead of relying on inferential testing of broad audit quality surrogates. The study also makes an important empirical contribution by providing primary evidence on how external regulation influences audit practice from a seldom studied African perspective.

中文翻译：

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南非监管变化对审计质量的影响

目的

本文探讨了审计实务的技术结构如何受到强制审计事务所轮换 (MAFR) 规定的影响。本文响应了对外部监管如何影响审计质量的额外研究的呼吁，并补充了主要针对公司轮换及其与审计质量相关性的定量研究。

设计/方法/方法

数据是从南非收集的，南非是最新采用 MAFR 的司法管辖区（从 2017 年开始）。对包括 24 名审计伙伴和 25 名非审计员在内的 49 名参与者进行了详细访谈，以探讨 MAFR 如何影响审计质量。为此，根据专业审计标准和先前对审计质量的研究，根据解释性开发的示意图来定义审计质量。

发现

不能保证 MAFR 会加强审计师的独立性或有助于更彻底的审计方法。相反，新入职的审计事务所为了解新客户而付出的努力，加上重大的投标成本，预计会降低审计业务的盈利能力，并对审计质量产生不利影响。客户经验的丧失和员工保留方面的挑战可能会进一步导致审计质量下降。当将由新的审计师检查在职公司的工作时，审计实践可能会有所改善，但是由于MAFR，预计审计方法，包括所执行测试的性质和程度，不会发生显着变化。这样，

原创性/价值

目前的论文提供了第一批探索性会计师之一，了解 MAFR 将如何影响审计实践，进而影响审计质量。该研究响应了对审计过程机制进行更多实地工作研究的呼吁，直接与从业人员接触，而不是依赖于对广泛审计质量替代品的推断性测试。该研究还通过从很少研究的非洲角度提供关于外部监管如何影响审计实践的主要证据，做出了重要的实证贡献。