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Rotation of auditors of companies listed on the stock market of the Prague Stock Exchange
[Rotace auditorů společností kótovaných na akciovém trhu Burzy cenných papírů Praha]

Author

Listed:
  • Michal Šindelář

Abstract

The aim of the article is to analyze the internal and external rotation of auditors on the stock market of Prague Stock Exchange. The analysis is made between the years 2011 - 2015 and is based on a total of 107 annual reports of listed companies. The annual report must contain the auditor's report for the period. Rotation of auditors is recently frequent topic of international research because of the new European regulation of the audit market. Following these international research this article contains the analysis of the Czech capital market. Data shows that on the Czech capital market there are fairly frequent changes of audit firms and key audit partners due to the number of listed companies. The analysis also shows the growing influence of the Big 4 companies (KPMG, Deloitte, PwC and EY (Ernst & Young)) in the number of audits carried out.

Suggested Citation

  • Michal Šindelář, 2016. "Rotation of auditors of companies listed on the stock market of the Prague Stock Exchange [Rotace auditorů společností kótovaných na akciovém trhu Burzy cenných papírů Praha]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2016(3), pages 59-71.
    • Handle: RePEc:prg:jnlcfu:v:2016:y:2016:i:3:id:480:p:59-71
    DOI: 10.18267/j.cfuc.480
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    References listed on IDEAS

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    1. Ali Abedalqader Al-Thuneibat & Ream Tawfiq Ibrahim Al Issa & Rana Ahmad Ata Baker, 2011. "Do audit tenure and firm size contribute to audit quality?: Empirical evidence from Jordan," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(4), pages 317-334, April.
    2. Willie Seal & Pat Sucher & Ivan Zelenka & Marcela Zarova, 1997. "Accounting and societal transition: The bohemian accountant and the velvet revolution," Post-Communist Economies, Taylor & Francis Journals, vol. 9(3), pages 383-406.
    3. Andrew B. Jackson & Michael Moldrich & Peter Roebuck, 2008. "Mandatory audit firm rotation and audit quality," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(5), pages 420-437, May.
    4. Jones, Jj, 1991. "Earnings Management During Import Relief Investigations," Journal of Accounting Research, Wiley Blackwell, vol. 29(2), pages 193-228.
    5. Patrick Velte & Carl-Christian Freidank, 2015. "The link between in- and external rotation of the auditor and the quality of financial accounting and external audit," European Journal of Law and Economics, Springer, vol. 40(2), pages 225-246, October.
    6. Corbella, Silvano & Florio, Cristina & Gotti, Giorgio & Mastrolia, Stacy A., 2015. "Audit firm rotation, audit fees and audit quality: The experience of Italian public companies," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 25(C), pages 46-66.
    7. Lambert, Richard A., 2001. "Contracting theory and accounting," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 3-87, December.
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    More about this item

    Keywords

    Internat rotation; External rotation; Oligopoly structure on audit market; Prague Stock Exchange; Interní rotace auditora; Externí rotace auditora; Oligopol na auditorském trhu; Burza cenných papírů Praha;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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