Business Commons^™

Auditor Size Vs. Audit Quality: An Analysis Of Auditor Switches, Jackie Weiner

Accounting

In recent years, there has been a debate over whether public companies should be required to have either a mandatory retention period or a mandatory rotation period for their external auditors. With all of the financial scandals that occurred in the late 1990s and early 2000s, the idea of auditor switching has come to the forefront. There are some opponents to auditor switching when companies switch auditors due to opinion shopping. However, research has identified many other reasons for switching auditors, such as business growth or requirements for new audit procedures. When companies require more complex audits, it may become …