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The effect of mandatory audit firm rotation and the auditing and repor by Khairul Anuar Kamarudin, Ainul Islam et al

This research investigates whether auditor competition is associated with low audit fees and whether a country's implementation of mandatory audit firm rotation requirements as well as strong auditing and reporting standards weaken the negative effect of auditor competition on audit fees. Using 41,811 firm-year observations from 10 emerging markets specifically China, India, Malaysia, Pakistan, the Philippines, Poland, Russia, South Africa, Thailand, and Turkey we find that auditor competition has a decreasing effect on audit fees. We also find that firms from countries with mandatory audit firm rotation requirements and strong auditing and reporting standards have higher audit fees than firms from countries with weak auditing and reporting standards and no mandatory audit firm rotation requirements. In the former countries, the negative relationship between auditor competition and audit fees is weaker than that for firms in the latter countries. Our results are robust to various

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