Does the abrupt change of a partner or manager affect audit quality?

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-03-20 DOI:10.1016/j.frl.2025.107266

Huanmin Yan , Zile Yu , Haodong Zhao , Hangyu Jiang , Xuehua Zhang

引用次数: 0

Abstract

Using a sample of Chinese A-share listed companies, this study examines how the abrupt change of a partner or manager impacts audit quality. Findings suggest that the abrupt change of a partner or manager significantly reduces audit quality. The negative impact on audit quality is the most significant when both partner and manager changed rather than when either the partner or manager changed. Further analysis shows that disclosing a change or reappointing a former auditor can mitigate the negative impact of this abrupt change on audit quality. The negative effects of abrupt auditor change on audit quality are more pronounced in smaller accounting firms and non-state-owned enterprises compared with larger accounting firms and state-owned enterprises. These findings can help improve the auditor appointment mechanism within accounting firms.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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