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The Impact of Auditor Resignation and Dismissal Trends on the Profession
Lisa A. Owens - Jackson, Clemson University
Diana R. Robinson, North Carolina A & T State University
Sandra Waller Shelton, DePaul University
ABSTRACT. Over the past decade audit industry changes and the implementation of the Sarbanes Oxley (SOX) Act 2002 have transformed the way audit firms conduct business. One significant change is the strict client acceptance/retention policies of Big 4 firms. Extensive firm-client realignment is the result of such policies. In recent years, the majority of Big 4 and national SEC audit clients that change auditors are moving to regional and local firms. This paper identifies auditor resignation and dismissal trends from 2000-2005; discusses the economic impact of these trends on the audit industry; and, evaluates the future implications of the vast number of auditor firm-client realignments from Big 4 to regional and local firms.
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