Title:
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Audit firm tenure and qualified opinions: new evidence from Spain
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Other titles:
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Efecto de la duración del contrato de auditoría en la recepción de informes cualificados: nueva evidencia para el mercado español
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Author:
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García Blandón, Josep; Argilés Bosch, Josep M.
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Other authors:
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Universitat Ramon Llull. IQS |
Abstract:
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The 2010 Green Paper on Audit Policy by the European Commission has explicitly questioned the sufficiency of audit rotation rules established by European Union Members to guarantee auditor independence. In addition, the Paper clearly states that more research is needed regarding the effects of long audit tenures on independence. In this article, we have replicated the research by Ruiz-Barbadillo, Gómez-Aguilar, and Biedma (2005) about the effects of audit firm tenure on independence with more updated data. However, unlike them, we have performed panel data estimations instead of pooled regression. Our approach allows for a better control of individual unobserved heterogeneity, thus reducing potential problems caused by omitted variable bias. While Ruiz-Barbadillo et al. reported an unexpected positive effect of tenure on the likelihood of audit qualifications, we do not show any significant effect of tenure on the opinion of the audit report. Our results are robust to various sensitivity analyses. |
Publication date:
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2013-06 |
Subject (UDC):
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33 - Economia |
Subject(s):
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Audit rotation Independence Audit qualifications Auditoria--Espanya Empreses auditores--Espanya Anàlisi de regressió--Espanya |
Rights:
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L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons:http://creativecommons.org/licenses/by-nc-nd/4.0/
© EDITUM i ASEPUC |
Pages:
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8 p. |
Document type:
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Article Article - Published version |
DOI:
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https://doi.org/10.1016/j.rcsar.2013.02.001
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Published by:
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Asociación Española de Profesores Universitarios de Contabilidad
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Publish at:
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Revista de Contabilidad: Spanish Accounting Review. Vol. 16, nº 2 (2013), pág. 118-125
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