• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2022 > Volume 13 Number 5 (Oct. 2022) >
IJTEF 2022 Vol.13(5): 143-149 ISSN: 2010-023X
DOI: 10.18178/ijtef.2022.13.5.737

The Determinants of Audit Quality: South African Evidence

Steven Firer

Abstract—The primary research question considered in this paper is whether auditor tenure has any effect on audit quality. This study is motivated by the newly introduced legislation in South Africa regarding mandatory audit firm rotation, which is premised on the belief that lengthy auditor tenure decreases audit quality. Using data from 1 273 auditees listed on South Africa's JSE Limited for the years 2010 to 2020, statistical analysis of the findings revealed that auditor tenure is positively associated with audit quality during the early years of the audit engagement because of a learning effect and auditor tenure is negatively associated with audit quality in the later years of the audit engagement because of an independence threat. Statistical analysis of the data revealed that through a learning effect audit quality increases until the 13th year of the auditee auditor relationship where due to an independence threat audit quality begins to decline.

Index Terms—Auditor quality, rotation, tenure, quadratic equation.

S R Firer is with the University of the Free State, 205 Nelson Mandela Drive Park West Bloemfontein, South Africa (e-mail: firersr@ufs.ac.za).

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Cite: Steven Firer, "The Determinants of Audit Quality: South African  Evidence," International Journal of Trade, Economics and Finance vol.13, no.5, pp. 143-149, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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