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Scientific paper - Original scientific paper
The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion
Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy, 12 (2021), 1; 96-108. https://doi.org/10.2478/bsrj-2021-0007
Filipović, Ivica; Šušak, Toni; Lijić, Andrea

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Filipović, I., Šušak, T. & Lijić, A. (2021). The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion. Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy, 12. (1), 96-108. doi: 10.2478/bsrj-2021-0007

Filipović, Ivica, et al. "The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion." Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy, vol. 12, no. 1, 2021, pp. 96-108. https://doi.org/10.2478/bsrj-2021-0007

Filipović, Ivica, Toni Šušak and Andrea Lijić. "The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion." Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy 12, no. 1 (2021): 96-108. https://doi.org/10.2478/bsrj-2021-0007

Filipović, I., Šušak, T. and Lijić, A. (2021) 'The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion', Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy, 12(1), pp. 96-108. doi: 10.2478/bsrj-2021-0007

Filipović I, Šušak T, Lijić A. The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion. Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy [Internet]. 2021 [cited 2024 August 07];12(1):96-108. doi: 10.2478/bsrj-2021-0007

I. Filipović, T. Šušak and A. Lijić, "The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion", Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy, vol. 12, no. 1, pp. 96-108, 2021. [Online]. Available at: https://urn.nsk.hr/urn:nbn:hr:227:132773. [Accessed: 07 August 2024]

Metadata
Title (english)The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion
AuthorIvica Filipović
AuthorToni Šušak
AuthorAndrea Lijić https://orcid.org/0000-0001-7258-877X
Author's institutionUniversity of Split
University Department of Forensic Sciences
Scientific / art field,
discipline and subdiscipline		SOCIAL SCIENCES
Economics
Abstract (english)
Background: Since external auditors possess the expertise necessary for detecting manipulations in financial statements, they should also take into account earnings management that could lead to it. In that context, auditor’s independence, which can be affected by auditor’s rotation, is of utmost importance. Objectives: This paper aims to examine the moderating effect of auditor rotation on the relationship between the extent of financial manipulation and the type of auditor’s opinion for companies listed on the Zagreb Stock Exchange in the Republic of Croatia. Methods/Approach: A panel analysis with logistic regression is conducted to test the research hypothesis. The sample consists of 210 observations during the three years from 2015 to 2017. Results: Results show a significant positive relationship between auditor rotation in a current financial year and auditor’s opinion. Furthermore, there is a negative, but the statistically insignificant moderating effect of auditor rotation in a current financial year on the relationship between financial manipulation and auditor’s opinion, as well as the statistically insignificant moderating effect of auditor rotation frequency over five years on the relationship between financial manipulation and auditor’s opinion. Conclusions: It is not likely that auditors take earnings management into account when generating their opinion on financial statements, and auditor rotation is not proven to be an adequate stimulus in that context.
Keywords (english)
Languageenglish
Publication typeScientific paper - Original scientific paper
Publication statusPublished
Peer reviewPeer review
Publication versionPublished version
Journal titleBusiness Systems Research : International journal of the Society for Advancing Innovation and Research in Economy
Numberingvol. 12, no. 1, pp. 96-108
e-ISSN1847-9375
DOIhttps://doi.org/10.2478/bsrj-2021-0007
URN:NBNurn:nbn:hr:227:132773
Publication2021
Document URLhttps://hrcak.srce.hr/258035
Type of resourceText
Access conditionsOpen access
Terms of useLicence Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) icon
Created on2024-06-21 08:16:05