Big Companies Risk Lower Audit Quality Due to Size, Fees
The study looked at how audit tenure, audit rotation, and company size affect audit quality in financial sector companies. They found that audit tenure and rotation didn't impact audit quality, but company size had a negative effect. However, higher audit fees were linked to better audit quality. The study suggests that companies should choose audit firms carefully and not skimp on audit fees. It also recommends considering the cost-benefit of audit tenure. Future research should expand on these findings.