Abstract

Using multiple indicators of audit quality, the study examines the impact of audit partner rotation on audit quality in India based on 1,694 firm years for the period of 2011–2017 when the institutional set up for audit partner rotation was voluntary. The empirical results indicate that the audit partner rotation had no significant impact on audit quality as measured by discretionary accruals and going concern audit opinion. The study finds that other factors like loss year, size of the firm, value, leverage have a statistically significant impact on audit quality. The empirical results also indicate an inverse relationship between audit fees and audit partner rotation implying, price-cutting of the audit. The findings are important to regulators regarding the significance of audit partner rotation in enhancing audit quality.

摘要

该研究使用多个审计质量指标，基于 2011 年至 2017 年期间的 1,694 个公司年，当时审计合伙人轮换的机构设置是自愿的，研究了审计合伙人轮换对印度审计质量的影响。实证结果表明，审计合伙人轮换对以酌情权应计和持续经营审计意见衡量的审计质量没有显着影响。研究发现，其他因素，如亏损年份、公司规模、价值、杠杆对审计质量有统计上的显着影响。实证结果还表明，审计费用与审计合伙人轮换之间存在反比关系，这意味着审计降价。关于审计合伙人轮换在提高审计质量方面的重要性，这些发现对监管机构很重要。