uu.seUppsala University Publications
Change search
ReferencesLink to record
Permanent link

Direct link
Audit firm rotation: Could the concept enhance an auditor’s independence?
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

As a result of crisis and scandals, a lot of criticism has been emphasized against an auditor’sindependence and profession. In order to re-establish confidence in financial statements, theEuropean Commission introduced a Green Paper that above all included a proposal of mandatoryaudit firm rotation aiming to enhance an auditor's independence. The aim of this thesis istherefore to describe whether an auditor’s independence may be affected by the new lawregarding Mandatory Audit Firm Rotation, by contributing with more information regarding auditfirm rotation based on Swedish companies from the Swedish market.

The study is based on a quantitative approach using a multivariate logistic regression in order tocompile and analyze the results. Six hypotheses have been tested in order to determine whetherchosen variables may affect an auditor's independence and their statements. Based on our results,we accepted four hypotheses, showing that four variables have an influence on qualified opinion,with rotation as a reference variable. The four variables are leverage, size, specialist and losswhich showed a statistically significance using a 5% significance level. The results imply thataudit firm rotation may enhance an auditor's independence.

Place, publisher, year, edition, pages
2016. , 37 p.
Keyword [en]
auditor's independence, audit firm rotation, Green paper, mandatory audit firm rotation and role of an auditor
National Category
Business Administration
URN: urn:nbn:se:uu:diva-298324OAI: oai:DiVA.org:uu-298324DiVA: diva2:945664
Subject / course
Business Studies
Educational program
Master Programme in Accounting, Auditing and Analysis
Available from: 2016-07-04 Created: 2016-07-02 Last updated: 2016-07-04Bibliographically approved

Open Access in DiVA

fulltext(875 kB)40 downloads
File information
File name FULLTEXT01.pdfFile size 875 kBChecksum SHA-512
Type fulltextMimetype application/pdf

By organisation
Department of Business Studies
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 40 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 84 hits
ReferencesLink to record
Permanent link

Direct link