Audit Quality and Auditor Switching: Some Lessons for Policy Makers

25 Pages Posted: 6 Sep 1998

See all articles by Clive S. Lennox

Clive S. Lennox

University of Southern California


This paper reviews the literature on audit quality and auditor switching to assess different countries policy regimes. It argues that policy-makers should limit managerial influence over auditor switching rather than reduce auditors' economic dependency on clients. In particular, the paper advocates proper communication between shareholders and auditors, and a policy of mandatory auditor retention. In contrast, some countries have adopted policies of mandatory rotation, and have banned non-audit services and introductory fee discounts. It is argued that such policies are less desirable on both theoretical and empirical grounds.

JEL Classification: M49, L84

Suggested Citation

Lennox, Clive, Audit Quality and Auditor Switching: Some Lessons for Policy Makers. Available at SSRN: or

Clive Lennox (Contact Author)

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

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