Mandatory Auditor Rotation in Independent Audit

Journal Title: Journal of the Human and Social Science Researches - Year 2016, Vol 5, Issue 7

Abstract

Most notable factors that affects decision process of investors are existing auditor independence and audit quality during preparation of financial statements. Auditing scandals occurred in the beginning of this century diminished the reliability of markets and give rise to questioning effectiveness of auditing activities. Because of occurred incidents, many countries established regulatory institutions and put legal obligations in force so as to upgrade audit quality. Audit rotation which is a must imposition audit firms obliged to practice is one of the implementations for protecting users of financial statements. With obligatory rotation, firms have to change their auditors at certain periods. With this rotation it is considered that independence of auditors and quality of audit is enhanced. In this study, importance of obligatory audit rotation, its downsides and advantages are highlighted and effects of auditor rotation is examined in the light of findings from different countries by conducting literature review about the issue.

Authors and Affiliations

Seçkin GÖNEN| Doç. Dr., Dokuz Eylül Üniversitesi, İktisadi ve İdari Bilimler Fakültesi İşletme Bölümü seckin.gonen@deu.edu.tr, Mithat RASGEN| Doktora Öğrencisi, Dokuz Eylül Üniversitesi, Sosyal Bilimler Enstitüsü mithatrasgen@gmail.com

Keywords

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  • EP ID EP2695
  • DOI -
  • Views 423
  • Downloads 28

How To Cite

Seçkin GÖNEN, Mithat RASGEN (2016). Mandatory Auditor Rotation in Independent Audit. Journal of the Human and Social Science Researches, 5(7), 1809-1822. https://europub.co.uk/articles/-A-2695