Impact of Audit Firm Rotation on Audit Quality: Evidence from Bhutan
Kriti Bhaswar Singh1, Abhishek Singh2

1Dr. Kriti Bhaswar Singh, Birla Institute of Technology, Mesra Noida Campus, Formerly Colombo Plan Faculty (MEA, GoI) to Royal University of Bhutan.
2Dr. Abhishek Singh, Birla Institute of Technology, Mesra Noida Campus.
Manuscript received on 25 July 2019 | Revised Manuscript received on 03 August 2019 | Manuscript Published on 10 August 2019 | PP: 1410-1417 | Volume-8 Issue-2S3 July 2019 | Retrieval Number: B12620782S319/2019©BEIESP | DOI: 10.35940/ijrte.B1262.0782S319
Open Access | Editorial and Publishing Policies | Cite | Mendeley | Indexing and Abstracting
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (

Abstract: This research study examines the effects of audit firm rotation on audit quality for non- financial public listed companies in Bhutan. Currently, Bhutan has only 21 companies listed on the Royal Securities Exchange of Bhutan Limited (RSEBL). Secondary data obtained for the period of 10 years, between 2009 to 2018, were analyzed using regression analysis. Abnormal Working Capitals Accruals (AWCA) has been used as proxy for audit quality. The study concludes that audit firm rotation has an insignificant but positive relation with AWCA. Thus, in Bhutan audit firm rotation does not affect audit quality for non-financial public companies, which are in tune with prior studies. Further, it was observed that there is an insignificant relation between AWCA and all control variables with the exception of growth. Growth has a decreasing trend at the rate of -0.13 percent while the trend analysis of AWCA shows that audit quality of non-financial public listed companies has been increasing at the rate of 21.01 percent which is an indirect evidence of low audit quality.
Keywords: Audit Firm Rotation, Audit Quality, Auditor Independence, Abnormal Working Capitals Accruals.
Scope of the Article: Social Sciences