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Journals / Uluslararası Avrasya Sosyal Bilimler Dergisi / 2019 / Cilt: 10 - Sayı: 37

THE EFFECT OF MANDATORY AUDIT FIRM ROTATION ON AUDIT QUALITY

Neriman YALÇIN
Alpaslan YAŞAR
Pages
692–708
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Thus, our findings support the idea that mandatory audit firm rotation enhances audit quality.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The discussions about whether the manner of application of mandatory rotation affects the audit quality still continue in developing countries and EU countries, notably the USA.
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Key Findings & Data:Therefore, we investigate whether Mandatory Audit Firm Rotation (MROT) enhances audit quality in Turkey for the years 2010-2016.
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Conclusion & Impact:Thus, our findings support the idea that mandatory audit firm rotation enhances audit quality.
🔬Design:Research Article
📍Scope:2010-2016 Verileri
⚙️Variables:Domain Parameters

Özet

The discussions about whether the manner of application of mandatory rotation affects the audit quality still continue in developing countries and EU countries, notably the USA. Therefore, we investigate whether Mandatory Audit Firm Rotation (MROT) enhances audit quality in Turkey for the years 2010-2016. The findings show that companies audited by mandatorily rotated new auditors have less discretionary accruals and thus higher audit quality than those non-rotated audit firms (NROT). In addition, we find that the audit quality in companies that are subjected to the mandatory rotation is higher than the audit quality of the same companies one year ago under old audit firms. Thus, our findings support the idea that mandatory audit firm rotation enhances audit quality.

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Cite This Article

YALÇIN, N., YAŞAR, A. (2019). THE EFFECT OF MANDATORY AUDIT FIRM ROTATION ON AUDIT QUALITY. Uluslararası Avrasya Sosyal Bilimler Dergisi, Cilt: 10 - Sayı: 37, 692–708. https://ajindex.com/articles/339487

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