英文摘要 |
Using earnings response coefficients as a proxy for investor perceptions of audit quality(perceived audit quality), we examine the association between audit partner tenure and perceived audit quality and evaluate whether seven-year audit partner rotation requirement specified in the Auditing Standard Bulletin No. 46 is needed. Our empirical evidence reveals that there is a positive relationship between audit partner tenure and perceived audit quality, suggesting that the longer the audit partner tenure the better perceived auditor quality. However, we also find that the positive relationship between audit partner tenure and perceived audit quality became weaker after audit partner tenure exceeds 7 years. Our findings lend support to the notion that long audit partner tenure has no detrimental effect on investor perception of audit quality. This allows policymakers to consider the necessity of mandatory audit partner rotation from the investor perspective. |