Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independence

Mandatory Audit Firm Rotation (MAFR), set to be implemented in South African from 1 April 2023, is poised by its propellers the world over as an essential reform in the efforts to improve auditor independence. Available literature suggests that there is no consensus regarding the impact of the impl...

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Main Authors: Msizi Gwala, Bomi Cyril Nomlala
Format: Article
Language:English
Published: Universitas Islam Indonesia 2021-06-01
Series:Jurnal Akuntansi dan Auditing Indonesia
Subjects:
Online Access:https://journal.uii.ac.id/JAAI/article/view/18924
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author Msizi Gwala
Bomi Cyril Nomlala
author_facet Msizi Gwala
Bomi Cyril Nomlala
author_sort Msizi Gwala
collection DOAJ
description Mandatory Audit Firm Rotation (MAFR), set to be implemented in South African from 1 April 2023, is poised by its propellers the world over as an essential reform in the efforts to improve auditor independence. Available literature suggests that there is no consensus regarding the impact of the implementation of MAFR. The divergent views on MAFR were demonstrated in recent time, with the European Union (EU) choosing to adopt it, while regulators in the United States decided to reject it. This paper examines the perspective of university auditing students on MAFR by examining the perceived impact it could have on auditor independence. The study finds that the majority (from 413 participants) of students surveyed are of the view that MAFR would yield positive outcomes on independence. The majority, however, agree on the MAFR Independence Benefit but warn about the possible negative consequences. MAFR will strengthen the independence of auditors.
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spelling doaj-art-caac2317d2be493eb396455a11f17bb12025-08-20T03:46:54ZengUniversitas Islam IndonesiaJurnal Akuntansi dan Auditing Indonesia1410-24202528-65282021-06-0125110661Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independenceMsizi Gwala0Bomi Cyril Nomlala1College of Law & Management Studies, University of KwaZulu-Natal, South AfricaCollege of Law & Management Studies, University of KwaZulu-Natal, South Africa Mandatory Audit Firm Rotation (MAFR), set to be implemented in South African from 1 April 2023, is poised by its propellers the world over as an essential reform in the efforts to improve auditor independence. Available literature suggests that there is no consensus regarding the impact of the implementation of MAFR. The divergent views on MAFR were demonstrated in recent time, with the European Union (EU) choosing to adopt it, while regulators in the United States decided to reject it. This paper examines the perspective of university auditing students on MAFR by examining the perceived impact it could have on auditor independence. The study finds that the majority (from 413 participants) of students surveyed are of the view that MAFR would yield positive outcomes on independence. The majority, however, agree on the MAFR Independence Benefit but warn about the possible negative consequences. MAFR will strengthen the independence of auditors. https://journal.uii.ac.id/JAAI/article/view/18924Mandatory Audit Firm RotationMAFRauditor independenceauditor rotation
spellingShingle Msizi Gwala
Bomi Cyril Nomlala
Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independence
Jurnal Akuntansi dan Auditing Indonesia
Mandatory Audit Firm Rotation
MAFR
auditor independence
auditor rotation
title Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independence
title_full Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independence
title_fullStr Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independence
title_full_unstemmed Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independence
title_short Mandatory audit firm rotation: A student perspective An assessment of the perceived impact on auditor independence
title_sort mandatory audit firm rotation a student perspective an assessment of the perceived impact on auditor independence
topic Mandatory Audit Firm Rotation
MAFR
auditor independence
auditor rotation
url https://journal.uii.ac.id/JAAI/article/view/18924
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AT bomicyrilnomlala mandatoryauditfirmrotationastudentperspectiveanassessmentoftheperceivedimpactonauditorindependence