Auditor Switching and Qualified Audit Opinion: Evidence from Serbia

The 2014 Proceedings of The first international Conference Sinteza, Belgrade

8 Pages Posted: 28 Apr 2014

See all articles by Nemanja Stanisic

Nemanja Stanisic

Singidunum University - Department for Business Economics

Zoran Petrovic

Singidunum University

Kosana Vicentijevic

Singidunum University

Vule Mizdrakovic

Singidunum University

Date Written: April 25, 2014

Abstract

The awareness of association between auditor switching and the audit opinion is essential when legislation regarding mandatory audit practice is being done. To test the significance of the association, we collect data on audit opinion reports of a random sample that comprises 800 industrial entities from Republic of Serbia. Using Fisher's Exact Test, we conclude that companies that have received unqualified opinion in one period, and subsequently changed their auditor firm, were significantly less likely to receive unqualified opinion in the following period, when compared to companies that have not changed auditor.

Keywords: Auditor independence, Auditor switching, Audit opinion

JEL Classification: M49, C12

Suggested Citation

Stanisic, Nemanja and Petrovic, Zoran and Vicentijevic, Kosana and Mizdrakovic, Vule, Auditor Switching and Qualified Audit Opinion: Evidence from Serbia (April 25, 2014). The 2014 Proceedings of The first international Conference Sinteza, Belgrade, Available at SSRN: https://ssrn.com/abstract=2429784

Nemanja Stanisic (Contact Author)

Singidunum University - Department for Business Economics ( email )

Danijelova 32
Belgrade, 11000
Serbia

Zoran Petrovic

Singidunum University ( email )

Danijelova 32
Belgrade, 11000
Serbia

Kosana Vicentijevic

Singidunum University ( email )

Danijelova 32
Belgrade, 11000
Serbia

Vule Mizdrakovic

Singidunum University ( email )

Danijelova 32
Belgrade, 11000
Republic of Serbia

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