Does Partner’s Tenure Matter to Auditor’s Independence?

  • Keneth Langat School of Business & Economics, Moi University, Kenya
  • Josephat Cheboi School of Business & Economics, Moi University, Kenya
  • Ambrose Kemboi School of Business & Economics, Moi University, Kenya
Keywords: Audit partner tenure, auditor independence, going concern opinion, unlisted firms

Abstract

Owing to the rising cases of corporate failure and the current debate on auditor independence, this paper sought to examine the effect of partner tenure on auditor independence, as measured by the going concern opinion. A sample of 120 Kenyan firms and data for the years 2011-2018 was used. Data was analyzed through descriptive and inferential statistics, while the hypothesis was tested through logistic estimation model. The findings indicate that partner’s tenure has a significant and positive effect on auditors’ independence suggesting that auditor’s independence is maximized when partners’ tenures are shorter. Therefore, the study recommends that firms should not engage auditors for a long tenure; however, the tenure should be sufficient to give auditors an opportunity to understand their clients’ business.

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Published
2021-01-15
How to Cite
Langat, K., Cheboi, J., & Kemboi, A. (2021, January 15). Does Partner’s Tenure Matter to Auditor’s Independence?. African Journal of Education,Science and Technology, 6(2), Pg 109-117. Retrieved from http://ajest.info/index.php/ajest/article/view/501
Section
Articles