The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion

Abstract

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.

Keywords

• auditor’s opinion
• auditor rotation
• earnings management
• financial manipulation
• m41
• m42