Government Regulation, Audit Partner Tenure Management and Audit Quality

Abstract

Abstract:

Focusing on the voluntary rotation issue, this paper studies the effect of audit partner tenure management and incoming partners upon audit quality, using the sample of 2003-2015 China listed companies. We find that audit partner tenure management reduces audit quality and in such circumstance, incoming partners also reduce audit quality. Government regulation plays the function of adjustment in the process of audit partner tenure management and incoming partners influencing audit quality. In a word, these conclusions are helpful and significant in improving audit partner rotation mechanism and enhancing the government regulation over audit industry.

Key words: government regulation, audit partner, tenure management, audit quality

Wu Weirong, Li Jingjing. Government Regulation, Audit Partner Tenure Management and Audit Quality[J]. , 2018, 30(1): 166-176.

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