The Effect of Timing of Auditor Change on Audit Quality
Asian Tax Journal Vol. 7 No. 3 (2006), pp. 29-51
Abstract
This study analyzes whether the discretionary accruals is lower when firm's auditor was changed at the beginning of manager's tenure. In this study, we used 8,737 firm years from 1987 to 2003. We found that discretionary accruals of listed firms were decreased when firm's auditor was changed at the beginning of manager's tenure. But We did not find any difference of discretionary accruals of unlisted firms. This findings suggested that the timing of auditor's change in the manager's tenure influences on the auditor's independence.
Keywords
- Manager Changes
- Auditor Changes
- Auditor's Independence
- Discretionary Accrual
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