Based on these differing perceptions among researchers as to whether audit rotation has a favourable or unfavourable effect on audit quality, this research paper will therefore examine legislative developments in relation to audit rotation from 2000 to the present around the globe but especially in the U.S. and the E.U. To this end, it will provide an overview of the prevailing legal situation and key government measures around the world, a list of legislative initiatives, and an analysis of concrete aftermaths on audit quality after the adoption or abolition of audit rotation.
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Get Help Now!Therefore, the main objective of this research paper is to contribute to a detailed understanding of audit rotation. It is intended to serve as a possible basis for further questions, such as whether or not companies should willingly introduce audit rotation despite the high opportunity costs, but assuming this could perhaps increase the credibility of the audit and the integrity of their corporate clients, or even whether countries that have adopted or abolished this legislation should reconsider their decision.
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