umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The impact of extended audit tenure on auditor independence: Auditors perspective
Umeå University, Faculty of Social Sciences, Umeå School of Business.
Umeå University, Faculty of Social Sciences, Umeå School of Business.
2010 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

With the wave of crises in the early 2000 notably Enron, auditor independence was put in the spotlight which has continually threatened the integrity of the entire auditing profession. Connected to these accounting scandals, it could be realized that most of the auditors involved in the audits of these corporations had long standing relationship with these clients. In other words, the auditors had extended audit tenures. This puts the issue of audit tenure into the open that is as to how long should auditors serve a client?

The general purpose of this study is to examine whether extended audit tenures can lead to the emergence of threats to auditor independence which may impair the auditor independence. Our study is quantitative, using a self-administered web-survey to collect our data. The study provides results from a cross sectional design to examine the impact of extended audit tenures on auditor independence. This impact is compared across short and extended (long) tenures on the basis of the threats to auditor independence. Using paired samples t-test in SPSS for our sample of authorized or approved Swedish auditors; we find that extended audit tenures impact self-interest, self-review and intimidation threats that affects auditor independence. Our findings did not reveal any relationship between the advocacy and familiarity threats and the impact extended audit tenures have on them, hence we rejected the hypotheses relating to these threats. However, though the relationship was still not strong, the results for self-interest, self-review and intimidation threats proved significant and this prompted us to accept the respective hypotheses. In conclusion, our results show that there is an association of auditor independence to extended audit tenures.

Place, publisher, year, edition, pages
2010. , 67 p.
Keyword [en]
Auditor independence, audit tenure, audit quality and auditor rotation
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-34641OAI: oai:DiVA.org:umu-34641DiVA: diva2:323327
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2010-06-10 Created: 2010-06-10 Last updated: 2010-06-10Bibliographically approved

Open Access in DiVA

fulltext(702 kB)4912 downloads
File information
File name FULLTEXT01.pdfFile size 702 kBChecksum SHA-512
3cc2fd516cae3dfff8b8ea72e9021d83f3c126b10d7f5aa334280379e7b5f8f40e3685be92e078513d6c581321fd2ee41e35af2720fc955341ebbf9878ddb79e
Type fulltextMimetype application/pdf

By organisation
Umeå School of Business
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 4912 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 1619 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf