U.S. Audit Partner Rotations Journal Article uri icon

Overview

abstract

  • ABSTRACTWe investigate the effects of audit partner rotation among U.S. publicly listed firms, utilizing the fact that audit partners are periodically copied by name in public correspondence between issuers and the Securities and Exchange Commission. Relative to non-rotation firms, we find no evidence of a change in the frequency of misstatements following the partner rotation; however, there is an increase in the frequency of restatement discoveries and announcements. We also find an increase in deferred tax valuation allowances. Overall, the results provide some evidence suggesting that U.S. partner rotations support a fresh look at the audit engagement.JEL Classifications: M41; M42; M48.Data Availability: Data are publicly available from sources identified in the article.

publication date

  • May 1, 2017

has restriction

  • closed

Date in CU Experts

  • July 3, 2018 10:47 AM

Full Author List

  • Laurion H; Lawrence A; Ryans JP

author count

  • 3

Other Profiles

International Standard Serial Number (ISSN)

  • 0001-4826

Electronic International Standard Serial Number (EISSN)

  • 1558-7967

Additional Document Info

start page

  • 209

end page

  • 237

volume

  • 92

issue

  • 3