Johnson et al. 2002 Association Big-6 clients, Comparing 3 Compared to the between the all data groups: short, medium term in the auditor tenure available, no medium and long short term the audit and the modified term. 2 proxies quality is significantly financial opinions, for earnings lower. No significant reporting resulting in quality. differences exist quality 2,463 US Unexpected between the medium firm-years accruals and and the long term from 1986 to persistence of 1995 from accruals Compustat Gul et al. 2009 Effects of 32,777 Multivariate The association specialization audited logistic between shorter auditor and low balling by Big6/5/4 regression tenure and a lower audit on the from 1993 to quality is lower when a association 2004 from company is audited by between the Compustat an industry specialist auditor tenure auditor. No evidence is and the audit found for low balling. quality Lim & Tan 2010 Effects of 12,783 Multivariate The audit quality is auditor from logistic affected by specialization 2000 to 2005 regression specialization and is fee and fee from Audit dependent dependence on Analytics and the association Compustat between the auditor tenure and the audit quality Audit Costs Author(s) Year Object of Sample Methodology Outcome study Arruñada & 1997 Effect of Estimation of Mandatory audit firm Paz-Ares mandatory costs by using rotation results in audit firm models from higher audit costs and a rotation on the prior researchers lower audit quality audit costs and the audit quality
Johnson et al. 2002 Association between the auditor tenure and the financial reporting quality Big-6 clients, all data available, no modified opinions, resulting in 2,463 US firm-years from 1986 to 1995 from Compustat Comparing 3 groups: short, medium and long term. 2 proxies for earnings quality. Unexpected accruals and persistence of accruals Compared to the medium term in the short term the audit quality is significantly lower. No significant differences exist between the medium and the long term Gul et al. 2009 Effects of specialization and low balling on the association between the auditor tenure and the audit quality 32,777 audited by Big6/5/4 from 1993 to 2004 from Compustat Multivariate logistic regression The association between shorter auditor tenure and a lower audit quality is lower when a company is audited by an industry specialist auditor. No evidence is found for low balling. Lim & Tan 2010 Effects of auditor specialization and fee dependence on the association between the auditor tenure and the audit quality 12,783 from 2000 to 2005 from Audit Analytics and Compustat Multivariate logistic regression The audit quality is affected by specialization and is fee dependent Audit Costs Author(s) Year Object of study Sample Methodology Outcome Arruñada & Paz-Ares 1997 Effect of mandatory audit firm rotation on the audit costs and the audit quality Estimation of costs by using models from prior researchers Mandatory audit firm rotation results in higher audit costs and a lower audit quality