Till Death Do Us Part: An Examination of the Impact of Unbroken Auditor-Client Relationships on Audit Efficiency and Audit Quality

SUMMARY We examine whether audit engagements where the client has never switched auditors (original auditors) are associated with different fee and quality outcomes, relative to that have experienced an auditor change. document clients original accrue nontrivial savings. Further, we find lower levels of discretionary accruals likelihood misstatements, implying higher quality. also investors appear recognize benefits, as these receive fewer votes from against their ratification. These results consistent a reduction in information asymmetry greater specific knowledge auditors, leading more efficient effective audits. Finally, benefits diminish for exceed 40 years, providing some support benefit eventual fresh look audit. Data Availability: available public sources cited text. JEL Classifications: G18; H83; M4.