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Title: Mandatory rotation of audit firms and auditors in Greece
Authors: Polychronidou, Persefoni
Drogalas, George
Tampakoudis, Ioannis
Type: Article
Subjects: FRASCATI::Social sciences::Economics and Business::Accounting
FRASCATI::Social sciences::Economics and Business::Finance
Keywords: Audit
Mandatory rotation
Audit quality
Issue Date: Jul-2020
Source: International Journal of Disclosure and Governance
Volume: 17
Issue: 2-3
First Page: 141
Last Page: 154
Abstract: This paper aims to examine the question of whether the mandatory rotation of audit firms and auditors, which is part of the new European Audit Reform, is a desirable measure in Greece. A comprehensive literature review of related studies from Europe and around the world was performed to study the issue. We conduct an empirical analysis focusing on auditors working in Greek audit firms and present the results of the responses from 115 members of the Institute of Certified Public Accountants of Greece. Empirical findings provide mixed results with regard to the implications of mandatory rotation. Most of the respondents agree that mandatory rotation will increase the overall costs of the audit process. However, they also conclude that it will increase both auditor independence and resistance to the management of audited firms. The findings of the study should be of interest to policymakers, regulators and audit firms in Greece and Europe. This is the first study that investigates the effects of mandatory rotation on audit quality in Greece since the establishment of the new regulatory audit framework. The study focuses on auditors’ views considering their decisive role in achieving audit quality. The conclusions of this study are generally in line with those indicated in the literature.
ISSN: 1741-3591
Other Identifiers: 10.1057/s41310-020-00080-3
Appears in Collections:Department of Business Administration

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