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
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: Suggested Citation