Mandatory Audit Firm Rotation and Audit Costs: A Survey of Auditing Firms in Bahrain
Kousay M. Said,
Hussein Ali Khasharmeh
Issue:
Volume 2, Issue 6, November 2014
Pages:
116-128
Received:
20 November 2014
Accepted:
28 November 2014
Published:
2 December 2014
DOI:
10.11648/j.jfa.20140206.11
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Abstract: The Purpose of this paper is to ascertain the perceptions of audit firms on the vexed issue of mandatory rotation of auditors in kingdom of Bahrain. A hand administered questionnaire survey of 102auditors, and accounting professionals was undertaken. Descriptive statistics were used to find out the most common reasons why respondents were agreed or disagreed with the idea of introduction of mandatory rotation of auditors in Bahrain and its effects on audit costs. The findings of the study indicate that there is an association between mandatory rotation of audit firms and audit costs. Analyses of variance (ANOVA) were also conducted to test the possibility of confounding effects arising from participants’ background and experience. None of these variables were found to have a confounding effect on the experimental results. The results also reveal that the adoption of rotation rules wasn’t given enough attention among the auditing firms in Bahrain. Finally, this study contributes to global debate on mandatory rotation of auditors from the view point of an emerging economy.
Abstract: The Purpose of this paper is to ascertain the perceptions of audit firms on the vexed issue of mandatory rotation of auditors in kingdom of Bahrain. A hand administered questionnaire survey of 102auditors, and accounting professionals was undertaken. Descriptive statistics were used to find out the most common reasons why respondents were agreed or...
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The External Auditor Mandatory Changes Impact on Improving the Quality of the Auditing Process
Ayah Jarallah El-Khozondar
Issue:
Volume 2, Issue 6, November 2014
Pages:
129-133
Received:
6 December 2014
Accepted:
25 December 2014
Published:
4 January 2015
DOI:
10.11648/j.jfa.20140206.12
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Abstract: This study identifies the effect of mandatory rotation of the external auditor in improving the quality of auditing and to confirm his objectivity and independence. A questionnaire has been designed and distributed to a sample of 185 external auditors and managers of corporation at Gaza. The study introduces many results; e. i, there is a relationship of applying the mandatory and its effect on the quality, cost and audit fees, and to improve the quality of auditing and to confirm his objectivity and independence. The study introduces many recommendations; e. g., applying the professional specialization strategy in the client's industry.
Abstract: This study identifies the effect of mandatory rotation of the external auditor in improving the quality of auditing and to confirm his objectivity and independence. A questionnaire has been designed and distributed to a sample of 185 external auditors and managers of corporation at Gaza. The study introduces many results; e. i, there is a relations...
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