Auditor Tenure,Auditor Rotation and Auditor Independence——Evidence From China's A-stock Market

With the disclosure of several major financial reporting failures,the relationship between auditor tenure and auditor independence has been drawn more attention.In China,the auditor who signs the audit report can not serve for the same client for more than five years.This paper uses evidence from China's A-stock market to review whether auditor tenure and auditor rotation can affect auditor independence,and to review the effectiveness of the rotation of auditors who sign the audit report.We find auditor tenure and audit independence are negatively related,which means long auditor tenure does impair auditor independence. On the other hand,mandatory rotation of auditor who signs the report can't improve the independence of the whole audit firm.The research can provide some useful references to related decision-makers.