Retain or Rotate: The Association between Frequent Auditor Switching and Audit Quality

SYNOPSIS Regulators have long expressed concerns about auditor changes and the detrimental impact of opinion shopping on audit market. Whereas prior studies examined how single-instance switching impacts outcomes, we examine whether frequent outcomes. We find that more is associated with lower quality, but this effect mitigated in presence higher internal external monitoring. also frequently companies quality than switch auditors, do not auditors. Taken together, our evidence indicates a subset participates such behavior to Our findings can inform regulators practitioners some ramifications help regulations client acceptance procedures.