Universal Journal of Accounting and Finance Vol. 9(6), pp. 1342 - 1354
DOI: 10.13189/ujaf.2021.090613
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Zimbabwean Stakeholder Perceptive of How Mandatory Audit Firm Rotation Contribute to Audit Quality


Olubukola Adegbola Otekunrin 1,2,*, Kudzanai Matowanyika 3
1 Department of Accounting & Finance, Landmark University, Nigeria
2 Landmark University SDG 8 (Decent Work and Economic Growth Group), Nigeria
3 Graduate Business School, Chinhoyi University of Technology, Chinhoyi, Zimbabwe

ABSTRACT

There is a consistent debate in the literature on how mandatory rotation of audit firms (MAFR) contributes to audit quality (AQ). For a reason, some have adopted MAFR while others did not. This study examined MAFR to AQ based on stakeholder perceptions. Theoretical insights were established to explore on existing evidence. A descriptive survey design was carried out with a triangulation approach. Interviews were conducted while at the same time questionnaires were administered to accountants, auditors, investors, and management. A population of 71 listed and audit firms were chosen, of which 29 firms were selected using simple random, systematic and purposive sampling. Correlation and regression analysis were used to examine and interpret the quantitative data. The study's findings indicated that MAFR has a positive relationship with AQ from the linear logistic regression computed; therefore, the null hypothesis is rejected. Meanwhile, having firm audit rotation is compulsory for all listed firms, which increases competition and improves independence and new idea development which ultimately results in improved audit quality. The study, therefore, concludes that MAFR is essential. The study recommends that a further study must be done to address other factors that can enhance AQ constituting 67% shown by the ANOVA test results.

KEYWORDS
Mandatory, Rotation, Audit, Quality

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Olubukola Adegbola Otekunrin , Kudzanai Matowanyika , "Zimbabwean Stakeholder Perceptive of How Mandatory Audit Firm Rotation Contribute to Audit Quality," Universal Journal of Accounting and Finance, Vol. 9, No. 6, pp. 1342 - 1354, 2021. DOI: 10.13189/ujaf.2021.090613.

(b). APA Format:
Olubukola Adegbola Otekunrin , Kudzanai Matowanyika (2021). Zimbabwean Stakeholder Perceptive of How Mandatory Audit Firm Rotation Contribute to Audit Quality. Universal Journal of Accounting and Finance, 9(6), 1342 - 1354. DOI: 10.13189/ujaf.2021.090613.