Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1006120 | Journal of Accounting and Public Policy | 2008 | 18 Pages |
Abstract
In this study, we examine the relation between auditor tenure and the reporting of conservative earnings. Using several measures of conservatism, we document a positive association between the conservatism in reported earnings and the length of the auditor–client relationship. We further document an increase in conservatism between short and medium tenure that does not deteriorate over long tenure. Collectively, the results imply lower conservatism for short auditor tenure, which suggests that mandating auditor rotation may have an adverse affect on the conservatism in reported earnings.
Keywords
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Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
David S. Jenkins, Uma Velury,