Mandatory rotation of audit firms and auditors in Greece

Persefoni Polychronidou (), George Drogalas () and Ioannis Tampakoudis ()
Additional contact information
Persefoni Polychronidou: International Hellenic University
George Drogalas: University of Macedonia
Ioannis Tampakoudis: University of Macedonia

International Journal of Disclosure and Governance, 2020, vol. 17, issue 2, No 9, 154 pages

Abstract: Abstract This paper aims to examine the question of whether the mandatory rotation of audit firms and auditors, which is part of the new European Audit Reform, is a desirable measure in Greece. A comprehensive literature review of related studies from Europe and around the world was performed to study the issue. We conduct an empirical analysis focusing on auditors working in Greek audit firms and present the results of the responses from 115 members of the Institute of Certified Public Accountants of Greece. Empirical findings provide mixed results with regard to the implications of mandatory rotation. Most of the respondents agree that mandatory rotation will increase the overall costs of the audit process. However, they also conclude that it will increase both auditor independence and resistance to the management of audited firms. The findings of the study should be of interest to policymakers, regulators and audit firms in Greece and Europe. This is the first study that investigates the effects of mandatory rotation on audit quality in Greece since the establishment of the new regulatory audit framework. The study focuses on auditors’ views considering their decisive role in achieving audit quality. The conclusions of this study are generally in line with those indicated in the literature.

Keywords: Audit; Mandatory rotation; Audit quality (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1057/s41310-020-00080-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:ijodag:v:17:y:2020:i:2:d:10.1057_s41310-020-00080-3

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41310

DOI: 10.1057/s41310-020-00080-3

Access Statistics for this article

International Journal of Disclosure and Governance is currently edited by Michael Alles

More articles in International Journal of Disclosure and Governance from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().