Proceedings of the 2nd International Conference on Culture, Education and Economic Development of Modern Society (ICCESE 2018)

State Ownership, Auditor Rotation and Audit Quality

Authors
Liangcheng Wang, Lin Zhu
Corresponding Author
Liangcheng Wang
Available Online March 2018.
DOI
https://doi.org/10.2991/iccese-18.2018.261How to use a DOI?
Keywords
state ownership; auditor rotation; audit quality
Abstract
This paper examines whether the auditor rotation affects the audit quality of state owned enterprises (SOEs) based on the data of China’s listed companies that switching audit firms in the period from 2004 to 2014. The results from our sample show that the auditor rotation has significant positive impact on the audit quality of central SOEs, but not local SOEs or non-state-owned enterprises. Further analysis divides the auditor rotation into the compulsory and the optional according to the SASAC rules. The result shows that the compulsory rotation behaves better than optional rotation in improving the auditing quality for central SOEs. This paper provides some empirical evidences for perfecting the SASAC rules and China’s auditing markets.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Liangcheng Wang
AU  - Lin Zhu
PY  - 2018/03
DA  - 2018/03
TI  - State Ownership, Auditor Rotation and Audit Quality
BT  - 2nd International Conference on Culture, Education and Economic Development of Modern Society (ICCESE 2018)
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/iccese-18.2018.261
DO  - https://doi.org/10.2991/iccese-18.2018.261
ID  - Wang2018/03
ER  -