Audit partner tenure and independence in a low litigation risk setting

We investigate whether long audit partner tenures impair auditor independence, as proxied by the opinion of the audit report, with a sample of Spanish companies for the period: 2002–2010. The Spanish audit market constitutes an ideal setting in which to address this issue, as it is characterized by...

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Detalhes bibliográficos
Autores: Garcia-Blandon, Josep, Argilés-Bosch, J.M.
Tipo de documento: artigo
Estado:Versión aceptada para publicación
Data de publicação:2016
País:España
Recursos:Universitat Ramon Llull (URL)
Repositório:DAU Arxiu Digital de la Universitat Ramon Llull
OAI Identifier:oai:dau.url.edu:20.500.14342/1037
Acesso em linha:http://hdl.handle.net/20.500.14342/1037
https://doi.org/10.1080/17449480.2016.1244340
Access Level:Acceso aberto
Palavra-chave:Auditoria--Espanya
Empreses auditores
Comptabilitat
Audit partner tenure
Auditor independence
Audit qualifications
Litigation risk
33
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spelling Audit partner tenure and independence in a low litigation risk settingGarcia-Blandon, JosepArgilés-Bosch, J.M.Auditoria--EspanyaEmpreses auditoresComptabilitatAudit partner tenureAuditor independenceAudit qualificationsLitigation risk33We investigate whether long audit partner tenures impair auditor independence, as proxied by the opinion of the audit report, with a sample of Spanish companies for the period: 2002–2010. The Spanish audit market constitutes an ideal setting in which to address this issue, as it is characterized by unusually lengthy engagements with the audit firm. The motivation relies, on the one hand, on the current discussion about the necessity to reinforce the independence of auditors and, on the other hand, on the very limited available research at the partner level. The main result is the lack of significant effects of partner tenure on independence. This finding is robust to various checks. Unlike prior research, we also address the joint effects of firm and partner tenure on independence. Results indicate that partner tenure does not compromise independence, even under long or extremely long audit firm tenures. These findings might have some interesting policy implications, in particular for the intense current debate on auditor rotation regimes which is taking place within the European Union.Taylor & FrancisUniversitat Ramon Llull. IQS20202023202020232016info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersion30 p.application/pdfhttp://hdl.handle.net/20.500.14342/1037https://doi.org/10.1080/17449480.2016.1244340RECERCAT (Dipòsit de la Recerca de Catalunya)reponame:DAU Arxiu Digital de la Universitat Ramon Llullinstname:Universitat Ramon Llull (URL)InglésAccounting in Europe. Vol. 13, n. 3 (2016), p. 405-424© Taylor & Francis. Tots els drets reservatsinfo:eu-repo/semantics/openAccessoai:dau.url.edu:20.500.14342/10372026-06-21T06:40:37Z
dc.title.none.fl_str_mv Audit partner tenure and independence in a low litigation risk setting
title Audit partner tenure and independence in a low litigation risk setting
spellingShingle Audit partner tenure and independence in a low litigation risk setting
Garcia-Blandon, Josep
Auditoria--Espanya
Empreses auditores
Comptabilitat
Audit partner tenure
Auditor independence
Audit qualifications
Litigation risk
33
title_short Audit partner tenure and independence in a low litigation risk setting
title_full Audit partner tenure and independence in a low litigation risk setting
title_fullStr Audit partner tenure and independence in a low litigation risk setting
title_full_unstemmed Audit partner tenure and independence in a low litigation risk setting
title_sort Audit partner tenure and independence in a low litigation risk setting
dc.creator.none.fl_str_mv Garcia-Blandon, Josep
Argilés-Bosch, J.M.
author Garcia-Blandon, Josep
author_facet Garcia-Blandon, Josep
Argilés-Bosch, J.M.
author_role author
author2 Argilés-Bosch, J.M.
author2_role author
dc.contributor.none.fl_str_mv Universitat Ramon Llull. IQS
dc.subject.none.fl_str_mv Auditoria--Espanya
Empreses auditores
Comptabilitat
Audit partner tenure
Auditor independence
Audit qualifications
Litigation risk
33
topic Auditoria--Espanya
Empreses auditores
Comptabilitat
Audit partner tenure
Auditor independence
Audit qualifications
Litigation risk
33
description We investigate whether long audit partner tenures impair auditor independence, as proxied by the opinion of the audit report, with a sample of Spanish companies for the period: 2002–2010. The Spanish audit market constitutes an ideal setting in which to address this issue, as it is characterized by unusually lengthy engagements with the audit firm. The motivation relies, on the one hand, on the current discussion about the necessity to reinforce the independence of auditors and, on the other hand, on the very limited available research at the partner level. The main result is the lack of significant effects of partner tenure on independence. This finding is robust to various checks. Unlike prior research, we also address the joint effects of firm and partner tenure on independence. Results indicate that partner tenure does not compromise independence, even under long or extremely long audit firm tenures. These findings might have some interesting policy implications, in particular for the intense current debate on auditor rotation regimes which is taking place within the European Union.
publishDate 2016
dc.date.none.fl_str_mv 2016
2020
2020
2023
2023
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/20.500.14342/1037
https://doi.org/10.1080/17449480.2016.1244340
url http://hdl.handle.net/20.500.14342/1037
https://doi.org/10.1080/17449480.2016.1244340
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Accounting in Europe. Vol. 13, n. 3 (2016), p. 405-424
dc.rights.none.fl_str_mv © Taylor & Francis. Tots els drets reservats
info:eu-repo/semantics/openAccess
rights_invalid_str_mv © Taylor & Francis. Tots els drets reservats
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 30 p.
application/pdf
dc.publisher.none.fl_str_mv Taylor & Francis
publisher.none.fl_str_mv Taylor & Francis
dc.source.none.fl_str_mv RECERCAT (Dipòsit de la Recerca de Catalunya)
reponame:DAU Arxiu Digital de la Universitat Ramon Llull
instname:Universitat Ramon Llull (URL)
instname_str Universitat Ramon Llull (URL)
reponame_str DAU Arxiu Digital de la Universitat Ramon Llull
collection DAU Arxiu Digital de la Universitat Ramon Llull
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.301603

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