@article{deliu2023orbital,
  title = {The Orbital Dynamics of Auditor Firm Rotation: Implications for Auditor Independence and Audit Quality},
  author = {Delia DELIU and Andrei-Marius OLARIU},
  year = 2023,
  url = {https://ibimapublishing.com/articles/JAARP/2023/173471/},
  journal = {Journal of Accounting and Auditing: Research & Practice},
  volume = 2023,
  pages = 18,
  doi = 10.5171/2023.173471,
  abstract = {Another trip around the sun? How does the auditor orbit the audit engagement? The primary objective of any audit engagement is to gather sufficient relevant audit evidence for the auditor to render an opinion on the financial statements. Previous research has illustrated that the compulsory rotation of audit firms yields positive effects on audit quality. The rationale behind auditor rotations lies in their potential to enhance audit quality by mitigating the risk of auditors becoming excessively familiar with clients, which could compromise their independence and impartiality. Some authors contend that mandatory rotations stimulate competition, foster greater accountability, and ultimately enhance audit quality. Conversely, opponents argue that such rotations may result in adverse outcomes, including increased expenses, loss of valuable expertise, and weakened auditor-client relationships. Consequently, there is a pressing need for further research to delve into the substance and utility of enhanced auditor reports, building upon prior investigations. Hence, this study aims to provide a comprehensive review of the literature on audit firm rotation, with a specific focus on Romanian publicly traded companies. It also offers an update on recent developments in audit reporting in the context of auditor rotation. Additionally, we provide a succinct overview of the various audit opinions issued between 2018 and 2021 for companies listed on the Bucharest Stock Exchange, also considering the impact of Covid19 pandemic. This research investigates the interplay between auditor rotations and audit quality. Furthermore, it identifies key factors that may impact the effectiveness of auditor rotations in enhancing audit quality.},
  keywords = {mandatory audit firm rotation; audit report; audit quality; auditor independence; Bucharest Stock Exchange Market; Covid19},
  note = Article ID: 173471
}