Journal of Behavioral Studies in Business Loan Officers ’ Reactions to Audit Rotation：（《商业贷款官员的反应行为研究审计轮换）.pdfVIP

Journal of Behavioral Studies in Business Loan Officers’ Reactions to Audit Rotation Bobbie W. Daniels Jackson State University Quinton Booker Jackson State University Abstract This study explores bank loan officers’ perceptions of audit firm rotation using a between-subjects case scenario. We address general issues of rotation and specific aspects of rotation, including the impact of rotation versus no rotation on perceptions of auditor independence and audit quality. Findings indicate that bank loan officers perceive that there is a greater perception of auditor independence and likelihood that errors discovered by the auditors will be reported when a company follows a rotation policy versus when there is no rotation policy. Key Words: Audit, Audit Rotation, Auditor Independence, Audit Quality Loan Officer’s Reactions, Page 1 Journal of Behavioral Studies in Business Introduction Recent corporate and accounting scandals shook investor confidence, raised questions about the reliability of financial statements and the potential negative effects of long-term relationships between auditors and their clients. Some view these long-term relationships as a threat to auditor independence (Ryan et al. 2001; Walker et al. 2001; Shockley 1981). Furthermore, they assert that rotation of auditor would lead to higher quality audits since the successor auditors would review the work of the predecessors, thereby motivating the predecessors. On the other hand, others believe that long-term relationships help the auditors to better understand the unique business transactions and identify key audit r