The effect of mandatory audit firm rotation on audit quality, audit fees and audit market concentration: evidence from India

Authors

K Raghunandan
R Narayanaswamy

Document Type

Working Paper

Abstract

In India, the government introduced mandatory audit firm rotation following calls to improve audit quality and auditor independence in the wake of the Satyam accounting scandal. The absence of strong institutional mechanisms to prevent and detect audit failure in a timely manner has led the government to require periodical audit firm rotation. Evidence from firms for the years 2014 to 2017 suggests that mandatory audit firm rotation does not appear to have improved audit quality, reduced audit costs and increased audit market competition.

Publication Date

1-4-2019

Publisher

Indian Institute of Management Bangalore

Pagination

31p.

Recommended Citation

Raghunandan, K and Narayanaswamy, R, "The effect of mandatory audit firm rotation on audit quality, audit fees and audit market concentration: evidence from India" (2019). Working Papers. 549.
https://research.iimb.ac.in/work_papers/549

Relation

IIMB Working Paper-582