Audit Rotation and Audit Report: Empirical Evidence from Malaysian PLCs over the Period of Ten Years

The main objective of this paper is to analyze the different types of audit report and audit rotation. The rotation of audit studied is the mandatory rotation of audit partner and voluntary rotation of audit firm from the selected Malaysian public listed companies over the period of ten years (2003-2012). The sample of this study consists of cross-sectional review of 1445 audit reports from 156 public listed companies in Malaysia. Research findings indicated that the Non-Big Four audit firms issued more qualified opinion. The association between reputable audit firm and the rotation of mandatory audit partner seemed significant.