Gietzmann & 2002 Effects of First game: 1 In audit markets with Sen mandatory period with few large clients, audit firm tenure period mandatory audit firm rotation on the restricted by law. rotation is beneficial. In auditor Second game: 2 audit markets with independence periods with no much large clients, mandatory mandatory audit firm rotation rotation is too costly Lindberg & 2004 CPA's 379 US CPA's Open ended After the collapse of Beck perceptions on (2001) interviews, focus Enron the CPA's the auditor groups and a perception of the independence survey. ANOVA services more before and after negatively affects the the collapse of auditor independence. Enron After the collapse of Enron CPA's are more concerned about issues which could harm the auditor independence in appearance. After the collapse of Enron are more CPA’s conservative about issues which affect the auditor independence. Daniels & 2011 Loan officers 212 loan between-subjects Perceived auditor Booker perceptions on officers experimental independence increases the auditor design in a rotation setting. independence Tenure does not and audit increase the auditor quality independence. Perceived audit quality does not increase. Audit Quality Author(s) Year Object of Sample Methodology Outcome study Copley & 1993 Effect of 136 audits of Regression model With fixed fee contracts Douchet auditor tenure federal significant more and audit financial violations of quality and assistance professional standards audit quality programs in exist and this effect is and fixed fee 1985 lower when provisions contracts exist
Gietzmann & Sen 2002 Effects of mandatory audit firm rotation on the auditor independence First game: 1 period with tenure period restricted by law. Second game: 2 periods with no mandatory rotation In audit markets with few large clients, mandatory audit firm rotation is beneficial. In audit markets with much large clients, mandatory audit firm rotation is too costly Lindberg & Beck 2004 CPA's perceptions on the auditor independence before and after the collapse of Enron 379 US CPA's (2001) Open ended interviews, focus groups and a survey. ANOVA After the collapse of Enron the CPA's perception of the services more negatively affects the auditor independence. After the collapse of Enron CPA's are more concerned about issues which could harm the auditor independence in appearance. After the collapse of Enron CPA’s are more conservative about issues which affect the auditor independence. Daniels & Booker 2011 Loan officers perceptions on the auditor independence and audit quality 212 loan officers between-subjects experimental design Perceived auditor independence increases in a rotation setting. Tenure does not increase the auditor independence. Perceived audit quality does not increase. Audit Quality Author(s) Year Object of study Sample Methodology Outcome Copley & Douchet 1993 Effect of auditor tenure and audit quality and audit quality and fixed fee contracts 136 audits of federal financial assistance programs in 1985 Regression model With fixed fee contracts significant more violations of professional standards exist and this effect is lower when provisions exist