An Examination of Partner Perceptions of Partner Rotation: Direct and Indirect Consequences to Audit Quality

Using structured interviews and surveys of practicing audit partners, this study examines their perceptions with regard to mandatory partner rotation and cooling-off periods, and how recently enacted, more stringent rules, may negatively impact auditors' quality of life to the detriment of audi...

Full description

Saved in:
Bibliographic Details
Published in:Auditing : a journal of practice and theory 2012-02, Vol.31 (1), p.97-114
Main Authors: Daugherty, Brian E., Dickins, Denise, Hatfield, Richard C., Higgs, Julia L.
Format: Article
Language:English
Subjects:
Accounting firms
Audit quality
Auditing
Auditing profession
Auditing standards
Audits
Cooling
Partners
Perceptions
Quality
Quality of life
Relocation
Studies
Testimony
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Using structured interviews and surveys of practicing audit partners, this study examines their perceptions with regard to mandatory partner rotation and cooling-off periods, and how recently enacted, more stringent rules, may negatively impact auditors' quality of life to the detriment of audit quality. Results suggest rotation, in general, increases partners' workloads and the likelihood of relocation. Additionally, results suggest that in response to accelerated rotation (and an extended cooling-off period), partners would rather learn a new industry than relocate. Importantly, partners perceive audit quality suffers from retraining, but not from relocating. Thus these results suggest an indirect, negative impact, and unintended consequence, of accelerated rotation/extended cooling-off periods on audit quality. Data Availability: The survey instrument is available upon request. Individual audit partner responses are confidential.
ISSN:0278-0380
1558-7991
DOI:10.2308/ajpt-10193