Audit effort affected by partner rotation and board inspections, study finds
LAWRENCE — Audit firms and their clients should enjoy a friendly relationship. Just not too friendly. That’s why the Public Company Accounting Oversight Board (PCAOB) requires such companies to rotate engagement partners every five years. But a new study by Amanda Winn, assistant professor of business at the University of Kansas, examines the effects of these regulations on the efforts of auditors. Her article titled “The Joint Effects of Partner Rotation and PCAOB Inspections on Audit Effort” finds that experienced auditors exert reduced effort prior to mandatory partner rotation and...
Source: ku.edu