Audit Tenure, Partner Rotation and Earnings Quality

Audit Partner Rotation, Earnings Quality and Earnings Conservatism Jane Hamilton University of Technology, Sydney and Capital Markets CRC Ltd Caitlin Ruddock University of New South Wales Donald Stokes University of Technology, Sydney and Capital Markets CRC Ltd * Stephen TaylorUniversity of New South Wales and Capital Markets CRC Ltd October 10, 2005 Key Words: Partner rotation, auditor independence, earnings quality, audit quality This research was supported by the Accounting and Audit Quality Research Program funded by the Capital Markets Co-Operative Research Centre (Capital Markets CRC Ltd) established by the Federal Government of Australia. We appreciate comments received from Philip Brown, Dan Dhaliwal, Peter Easton, Jennifer Francis, Zoltan Matolcsy, Zoe-Vonna Palmrose, Mathew Pinnuck and Katherine Schipper, as well as workshop participants at the 2005 UTS Summer Research School, the 2005 UNSW Financial Reporting Research Camp, the 2005 International Symposium on Audit Research (ISAR), the University of Melbourne and the Helsinki School of Economics. We also acknowledge the excellent research assistance of Sumaiyah Abdul Halim. * Contact Author: School of Accounting University of New South Wales Sydney NSW 2052 Australia S.Taylor@unsw.edu.au 1 Audit Partner Rotation, Earnings Quality and Earnings Conservatism Abstract We provide evidence of an association between audit partner rotation and the ...