Business, Management and Accounting
8 years ago

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2 views
The effect of audit firm tenure and audit firm switching on auditor reporting quality: The case of going concern opinion
Rohami Shafie, Mohd ‘Atef Yusof, Hairi Hussain

Paper Summary

Audit firm tenure can impact the quality of auditor reports, especially when it comes to giving going concern opinions. In Malaysia, long relationships between auditors and clients can lead to clean opinions even when financial problems are present. Changing auditors may not always solve the issue, but self-regulation could be a better solution than mandatory rotation. The study found that audit firm tenure plays a significant role in determining going concern opinions.

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