IMPACT OF MANDATORY ROTATION OF AUDIT FIRMS AND AUDIT QUALITY IN CORPORATE ORGANISATION
Keywords:
Audit, Firm, Management, Organisation, Rotation, TenureAbstract
This study is theoretical in nature and used secondary source of information such as journals, textbooks, conference papers, seminar papers et cetera, to investigate the effects of mandatory rotation of audit firm and audit quality in corporate organizations. The study's conclusions showed that an audit firm's length of time working with a specific client has an impact on the quality of the audit, due to familiarity threat, auditor independence, auditor compliance, conflict of interest, etc. Although many researchers have argued against this policy and its ideas, it became necessary to develop this good idea that would further best protect the interests of the various stakeholders due to the unwholesome attitude and negligence of the auditors and the management of an organization. The study's findings revealed that, in order to boost trust in the system, investors want greater responsibility, transparency, and security for their money both from the audit firms and company management. The study recommended that mandatory rotation of audit firm should be made necessary for corporate organizations, as it is essential for any organization's development and success.
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