Audit Partner Rotation Boosts Quality, Benefiting Investors and Businesses
The study looked at how assigning audit hours to different audit stages and partners affects audit quality in Korean listed firms. They found that when more audit hours are spent and allocated to year-round audits, audit quality improves. This is especially true for firms with longer audit tenure or low audit risk. The research suggests that proper partner rotation and allocation of audit hours can lead to higher audit quality.