Auditor Rotation Boosts Financial Transparency, Safeguards Investor Trust
Audit firm rotation affects how auditors analyze financial information, impacting the quality of audit reports. The main purpose of an audit is to gather the necessary evidence to give an opinion on financial statements. This study found that changing auditing firms can influence auditor independence and the quality of audits. It's like ensuring the trip around the sun is taken with fresh eyes each time for accurate financial assessments.