Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market

The main role of the external auditor in the classical corporate governance scheme is to verify the accounting information provided by the firms’ managers. Lengthy audit engagements are viewed as a main threat to preserve auditor independence, and therefore regulators have established mandatory rota...

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Detalles Bibliográficos
Autores: Garcia-Blandon, Josep, Argilés-Bosch, J.M.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:20.500.14342/1033
Acceso en línea:http://hdl.handle.net/20.500.14342/1033
https://doi.org/10.4067/s0718-52862013000200002
Access Level:acceso abierto
Palabra clave:Auditoria--Espanya
Control de qualitat--Auditoria
Auditor independence
Qualified opinion
Auditor tenure
Audit quality
336
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spelling Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish marketTenencia de auditorías y calificaciones de auditorías en un ambiente de bajo riesgo de litigios: un análisis del mercado españolGarcia-Blandon, JosepArgilés-Bosch, J.M.Auditoria--EspanyaControl de qualitat--AuditoriaAuditor independenceQualified opinionAuditor tenureAudit quality336The main role of the external auditor in the classical corporate governance scheme is to verify the accounting information provided by the firms’ managers. Lengthy audit engagements are viewed as a main threat to preserve auditor independence, and therefore regulators have established mandatory rotation rules in many countries worldwide. Researchers, however, have addressed the analysis of audit independence mainly by evaluating the role of the auditor not as an accounting verifier but as a substitute of bankruptcy prediction models. Our results show that the likelihood of audit qualifications decreases with audit tenure. This result is robust to the inclusion in the model of a proxy of accounting quality. Therefore, the potential explanation for this finding based on higher accounting quality associated to lengthy audit engagements is rejected. This threat to the independence of the external auditor has not been considered in the mandatory rotation rules established in most countries that only requires the rotation of the audit partner.Universidad de ChileUniversitat Ramon Llull. IQS2013info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersion24 p.http://hdl.handle.net/20.500.14342/1033https://doi.org/10.4067/s0718-52862013000200002reponame:Recercat. Dipósit de la Recerca de Catalunyainstname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)InglésEstudios de Economía. Vol. 40, No. 2 (2013), pág. 133-156Attribution-NonCommercial-ShareAlike 4.0 International© Universidad de Chilehttp://creativecommons.org/licenses/by-nc-sa/4.0/info:eu-repo/semantics/openAccessoai:recercat.cat:20.500.14342/10332026-05-29T05:05:01Z
dc.title.none.fl_str_mv Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
Tenencia de auditorías y calificaciones de auditorías en un ambiente de bajo riesgo de litigios: un análisis del mercado español
title Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
spellingShingle Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
Garcia-Blandon, Josep
Auditoria--Espanya
Control de qualitat--Auditoria
Auditor independence
Qualified opinion
Auditor tenure
Audit quality
336
title_short Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
title_full Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
title_fullStr Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
title_full_unstemmed Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
title_sort Audit tenure and audit qualifications in a low litigation risk setting: an analysis of the spanish market
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
Control de qualitat--Auditoria
Auditor independence
Qualified opinion
Auditor tenure
Audit quality
336
topic Auditoria--Espanya
Control de qualitat--Auditoria
Auditor independence
Qualified opinion
Auditor tenure
Audit quality
336
description The main role of the external auditor in the classical corporate governance scheme is to verify the accounting information provided by the firms’ managers. Lengthy audit engagements are viewed as a main threat to preserve auditor independence, and therefore regulators have established mandatory rotation rules in many countries worldwide. Researchers, however, have addressed the analysis of audit independence mainly by evaluating the role of the auditor not as an accounting verifier but as a substitute of bankruptcy prediction models. Our results show that the likelihood of audit qualifications decreases with audit tenure. This result is robust to the inclusion in the model of a proxy of accounting quality. Therefore, the potential explanation for this finding based on higher accounting quality associated to lengthy audit engagements is rejected. This threat to the independence of the external auditor has not been considered in the mandatory rotation rules established in most countries that only requires the rotation of the audit partner.
publishDate 2013
dc.date.none.fl_str_mv 2013
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/20.500.14342/1033
https://doi.org/10.4067/s0718-52862013000200002
url http://hdl.handle.net/20.500.14342/1033
https://doi.org/10.4067/s0718-52862013000200002
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Estudios de Economía. Vol. 40, No. 2 (2013), pág. 133-156
dc.rights.none.fl_str_mv Attribution-NonCommercial-ShareAlike 4.0 International
© Universidad de Chile
http://creativecommons.org/licenses/by-nc-sa/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Attribution-NonCommercial-ShareAlike 4.0 International
© Universidad de Chile
http://creativecommons.org/licenses/by-nc-sa/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 24 p.
dc.publisher.none.fl_str_mv Universidad de Chile
publisher.none.fl_str_mv Universidad de Chile
dc.source.none.fl_str_mv reponame:Recercat. Dipósit de la Recerca de Catalunya
instname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
instname_str Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
reponame_str Recercat. Dipósit de la Recerca de Catalunya
collection Recercat. Dipósit de la Recerca de Catalunya
repository.name.fl_str_mv
repository.mail.fl_str_mv
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