دانلود رایگان مقاله انگلیسی اثرات متقابل تصدی شریک و شرکت در کیفیت حسابرسی - تیلور و فرانسیس 2017

This paper investigates the impact of firm and partner tenure on audit quality, where audit quality is proxied by discretionary accruals. We study a sample of Spanish listed companies between 2005 and 2011 and address both the individual and the interaction effects of firm and partner tenure. Our study is motivated by the current debate, particularly intense at the EU level, on the impact of the auditor rotation regime on the quality of auditing. We find that, without considering the interaction effects, firm and partner tenure do not seem to play a relevant role as determinants of audit quality. Importantly, the interaction of firm and partner tenure shows stronger effects on audit quality than both forms of tenure separately considered. Finally, our analysis suggests that audit quality is maximized when medium firm and partner tenures interact. However, results for the interaction variables are sensitive to the accruals estimation method.

6. Concluding

remarks Despite mandatory partner rotation rules currently enforced in many jurisdictions, regulators and policy-makers are still concerned about the potentially negative impact of long audit tenures on audit quality. As a clear example of this concern, the 2014 EU Regulation has established, among other things, the mandatory rotation of the audit firm in the EU. Not surprisingly, the new regulation has generated considerable controversy in the audit profession and has encouraged further research on the impact of auditor tenure on audit quality.

The results of this paper lead us to draw several conclusions. Firstly, without considering interaction effects, firm and partner tenure seem to play a very modest role as determinants of audit quality. This is in line with some of the evidence available for Spain as well as for other countries. Secondly, the impact of partner tenure, although weak, seems to be stronger than the effects of audit firm tenure. Thirdly and most importantly, as it is directly related to the aim of this paper, the interaction effects of firm and partner tenure on audit quality seem to be stronger than the individual effects of both forms of tenure. Therefore, the study of interaction effects seems to provide a more complete picture of the tenure–audit quality relationship. Regarding this issue, our results suggest that audit quality is maximized when medium firm tenure interacts with medium partner tenure.