A Survey of the Impact of Auditor Tenure on Auditor Independence and Information Risk

• Main Authors: Teng Shih, 王登仕
• Other Authors: Ying Te Chen
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/12427252775889348039

碩士 === 靜宜大學 === 會計學系研究所 === 96 === Accounting irregularities let investors challenged the role of auditor, especially on the effect between auditor tenure and earning quality or audit quality. In this study we survey the relationship between auditor tenure and earning information risk again. First we distinguish auditor tenure into three categories which were auditor firm tenure、engagement partner tenure and engagement partner & cool reviewer tenure. Then we distinguish longer tenure by 7 or 5 years. We find that auditor firm tenure and earning information risk was appear to curve liner, the auditor firm tenure longer than 5 years reduce the earning information risk but longer than 7 years do not reduce the earning information risk. We argue that was affected by economics dependent with auditor firm. Further in engagement partner although we didn’t find it had the curve liner with information risk, but we find the engagement partner tenure longer than 5 years also reduce the earning information risk, but longer than 7 years do not reduce the earning information risk too. We argue that was affected by the pressure of personal sympathy. Our contribution：We find the U type relationship between auditor firm tenure and audit quality and the audit quality was better when the auditor firm tenure between 5 and 7 years. Although we didn’t find the U type relationship between engagement partner tenure and information risk but in our study we find the best tenure should be at 6 years.