Title: The impact of issuing a qualified audit opinion on auditor switching: an empirical study in the Tunisian context

Authors: Feten Arfaoui; Salma Damak-Ayadi

Addresses: ISCAE Manouba, Tunisia ' IHEC Carthage, Tunisia

Abstract: This study examines the impact of the qualified opinions on auditor switching. Based on a sample of 56 Tunisian companies between 2007 and 2008 the logistic regression suggests that companies tend in fact to switch auditors more frequently after receiving qualified opinions. However, the qualified companies that switch auditors are not more likely to receive an unqualified audit reports the following year. The limitations of our study are mainly related to the smaller sample size and the study period. A Tunisian research expands the results obtained in previous empirical research on the impact of the opinions with reserve on the auditor switches for Tunisian companies. This topic has broad implications for the understanding of the dynamics of the market services of audit and the degree of competition between the audit firms in Tunisia. Such reflexion falls under a context where the independence of the auditor is more than ever called into question.

Keywords: auditor switching; qualified audit reports; Tunisia; qualified opinions; auditing; auditor independence.

DOI: 10.1504/IJMFA.2014.065238

International Journal of Managerial and Financial Accounting, 2014 Vol.6 No.3, pp.189 - 202

Received: 05 May 2014
Accepted: 13 Aug 2014
Published online: 16 Oct 2014 *

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