Review on the mandatory rotation of auditor
Author(s):
Abstract:
After bankruptcy of such companies as Enron and WorldCom, the legislature and regulatory institutions paid attention to the role of auditors and their rotation. The sections 203 and 207 of Sarbanes Oxleys Act (2002) have been allocated to the prohibition of more than 5 years tenure by audit partners and doing research about mandatory rotation of audit firms. The supporting arguments for mandatory rotation are summarized in upgrading the auditor's independence and decentralization in audit market. Contrary to that, related studies makes clear that this action not only does not culminate in improving the quality of auditing but also it will increase the costs of auditing due to the necessity of collecting evidence and knowledge in the early years of auditing. Also decentralization in the market will culminate in decreasing the opportunities for small auditing firms because of competition and endangers the auditor's job security. In other words, the effective auditing will not be realized
Language:
Persian
Published:
Journal of accounting and social interests, Volume:6 Issue: 2, 2016
Pages:
17 to 40
magiran.com/p1599311
دانلود و مطالعه متن این مقاله با یکی از روشهای زیر امکان پذیر است:
اشتراک شخصی
با عضویت و پرداخت آنلاین حق اشتراک یکساله به مبلغ 1,390,000ريال میتوانید 70 عنوان مطلب دانلود کنید!
اشتراک سازمانی
به کتابخانه دانشگاه یا محل کار خود پیشنهاد کنید تا اشتراک سازمانی این پایگاه را برای دسترسی نامحدود همه کاربران به متن مطالب تهیه نمایند!
توجه!
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
- پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانههای چاپی و دیجیتال را به کاربر نمیدهد.
In order to view content subscription is required
Personal subscription
Subscribe magiran.com for 70 € euros via PayPal and download 70 articles during a year.
Organization subscription
Please contact us to subscribe your university or library for unlimited access!