Title: An empirical evidence on audit selection and audit rotation: the case of Qatari listed companies

Authors: Ghassan H. Mardini; Yasean Tahat

Addresses: College of Business and Economics, Qatar University, P.O. Box 2713, Doha, Qatar ' College of Business Administration, Gulf University for Science and Technology, Kuwait, Kuwait

Abstract: The primary objective of this research is to examine the current state of audit selection and rotation practised by Qatari listed firms. A questionnaire survey has been used. A number of findings have emerged from the current investigation. First, the results indicate that a number of criteria appear to be used by listed companies in Qatar for such decisions: namely, accuracy, completeness, appropriateness, adequacy and multi-function ability. Indeed, the findings reveal that audit firm expertise, reputation and service quality are the most important factors employed by Qatari listed firms when choosing/changing an audit firm. Second, the study finds that audit rotation can enhance both audit quality and investors' confidence in the published financial statements. Finally, an industrial analysis of audit selection and rotation criteria shows that both audit firm expertise and service quality are statistically different among sectors examined. The findings of this research provide a great deal of insight for policy-makers, academicians and professionals about audit rotation in Qatar.

Keywords: audit selection; audit rotation; audit quality; cost-benefit analysis; Qatar; expertise; firm reputation; service quality; investor confidence; financial statements.

DOI: 10.1504/IJAAPE.2017.081811

International Journal of Accounting, Auditing and Performance Evaluation, 2017 Vol.13 No.1, pp.99 - 122

Received: 24 Jun 2015
Accepted: 25 Jan 2016

Published online: 24 Jan 2017 *

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