| dc.description.abstract | According to agency theory, auditors are crucial in improving disclosure
quality. Audit rotation is the suggested remedy since it is believed that the auditor's
independence is compromised by their extended relationship with their client. Many
countries have issued regulations regarding the rotation of auditors; however, these
regulations have led to many debates among researchers, managers, and professional
associations. Using quantitative research methods, this study contributes empirical
evidence to the literature on the relationship between audit quality and audit rotation. We
used three proxies of audit quality in this study including the absolute abnormal working
capital accruals (AAWCA), the current accruals (ADD), and the absolute discretionary
revenues (ARESREV). Results show that audit partner rotation negatively impacts audit
quality based on ADD measurement. Otherwise, the impact of audit firm quality on audit
quality is regarded as insignificant. | en_US |
