The impact of auditor tenure on audit quality; evidence from Pakistan

Simple item page
dc.contributor.authorMalik, Zohair Farooq
dc.date.accessioned2017-11-01T05:17:26Z
dc.date.available2017-11-01T05:17:26Z
dc.date.issued2016
dc.descriptionSupervised by:Mr. Shahid Hassanen_US
dc.description.abstractThis study aims to examine the impact of auditor-client-relationship tenure on the quality of audit and whether the mandatory auditor-rotation will result in enhancement of audit quality. Discretionary accruals calculated with the help of Modified Jones Model 1991 are used as the proxy for audit quality. 121 companies related to non-financial sector of Pakistan listed in Pakistan Stock Exchange are selected after taking the data from year 2005 till year 2014. It is observed that the magnitude of discretionary accruals increases during the initial years of auditor-client-relationship tenure, reason being, the auditors are not equipped with required client-specific knowledge. Once the auditors acquire client-specific knowledge, the magnitude of discretionary accruals decreases, resulting in increase in audit quality. Based on the findings of this study, it is derived that the lengthy auditor-client-relationship tenure does not result in decrease in audit quality. Furthermore, the Big 4 audit firms acquire client-specific knowledge far more earlier as compared to other auditors (three years as compared to six years). The results of the study suggest that the regulators and standards setters in Pakistan should reconsider their policy regarding mandatory-auditor-client relationship tenure.en_US
dc.identifier.urihttps://escholar.umt.edu.pk/handle/123456789/2186
dc.language.isoenen_US
dc.publisherUniversity of Management and Technology Lahoreen_US
dc.subjectAuditor Tenureen_US
dc.subjectPakistan Stock Exchangeen_US
dc.subjectMS Thesisen_US
dc.titleThe impact of auditor tenure on audit quality; evidence from Pakistanen_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
Summary.pdf
Size:
129.69 KB
Format:
Adobe Portable Document Format
Description:
Download
No Thumbnail Available
Name:
Full View.htm
Size:
23.33 KB
Format:
Hypertext Markup Language
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
School of Commerce and Accountancy