Auditor tenure and audit quality in Spanish state-owned foundations

Belén González-Díaz, Roberto García-Fernández and Antonio López-Díaz

Revista de Contabilidad - Spanish Accounting Review, 2015, vol. 18, issue 2, 115-126

Abstract: This paper aims to analyze the impact of auditor tenure on audit quality. The research is motivated by the absence of consensus in published works, and by the scarcity of studies carried out on non-profit organizations. Using a sample of 254 audits carried out between 2003 and 2010 on Spanish state-owned foundations, we find that, although foundation audit quality decreases as tenure length increases, this quality loss does not become apparent until the sixth year of the foundation–auditor relationship, after an initial five years of improvement in quality. The empirical evidence is important for regulators and financial statement users, given that it suggests the need for the introduction of tenure-reducing measures which, at the same time, also ensure a minimum tenure period.

Keywords: Auditor tenure; Audit quality; Non-profit organizations; Foundations; Logistic regression; Permanencia del auditor; Calidad de la auditoría; Entidades no lucrativas; Fundaciones; Regresión logística (search for similar items in EconPapers)
JEL-codes: C35 H83 L31 M42 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1138489114000223

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:eee:spacre:v:18:y:2015:i:2:p:115-126

DOI: 10.1016/j.rcsar.2014.04.001

Access Statistics for this article

Revista de Contabilidad - Spanish Accounting Review is currently edited by Bernabé Escobar Pérez

More articles in Revista de Contabilidad - Spanish Accounting Review from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).