Mandatory audit firm rotation within the European Union: An analysis of the responses to the Green Paper “Audit Policy: Lessons from the Crisis”
Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Purpose – The purpose of this thesis is to investigate the audit profession, preparers, audit committee and users opinion of mandatory audit firm rotation proposed in the 2010 Green Paper “Audit policy: Lessons from the crisis”. Furthermore, the purpose is to scrutinize the different motivations and reasons for their opinions.
Research Design – The analysis is performed through a qualitative content analysis using secondary data. The secondary data is collected from the answers to the Green Paper authorized for publication and published by the European Commission. The analysis focus on informational content of textual data. The data is analysed by first determining if the respondent has a positive, negative or unclear attitude towards mandatory audit firm rotation. The next step is to investigate what the reasons are for the respondent’s attitude, this is done by applying different codes representing a reason, and the codes are created inductively.
Findings – The findings indicates that 90% of the respondents have a negative attitude towards mandatory audit firm rotation. The main reasons for this attitude are the decrease in audit quality and the increase in costs, both connected to mandatory audit firm rotation.
Contributions – By conducting the analysis of the data it is confirmed that the attitude towards mandatory audit firm rotation is mostly negative among the respondents. The reasons given are in line with previous research conducted on the subject. Furthermore the European Commission have created a new regulation which is not in line with the opinion given by the respondents to the Green Paper.
Value – The result contributes to the ongoing discussion within the European Union regarding stakeholders’ perspective and expectations on mandatory audit firm rotation and the new audit reform.
Place, publisher, year, edition, pages
2016. , 43 p.
IdentifiersURN: urn:nbn:se:hj:diva-30022ISRN: JU-IHH-FÖA-2-20160183OAI: oai:DiVA.org:hj-30022DiVA: diva2:930336
Subject / course
IHH, Business Administration
Inwinkl, Petra, Dr. Dr.