The Association between Auditor Switching and Audit Opinion in the Republic of Serbia

Finiz Conference, Belgrade, 2015

4 Pages Posted: 18 Dec 2015 Last revised: 20 Dec 2015

See all articles by Nemanja Stanisic

Nemanja Stanisic

Singidunum University - Department for Business Economics

Tijana Radojevic

Singidunum University

Nenad Stanic

Singidunum University

Danica Rajin

Singidunum University

Date Written: December 4, 2015

Abstract

In this study, the authors examine the association between auditor switching and type of audit opinion on a sample of companies in the Republic of Serbia. The sample comprised 4,309 non-financial companies for which auditor’s reports were publicly available for the period 2010-2013. The results show that auditor switching was linked to an increased likelihood of change in the type of audit opinion. In the case when the initial audit opinion was unqualified or qualified, this increase was statistically significant. Such findings can indicate that auditor switching may lead to an improved informative value of auditor’s reports, but it also raises concerns about the possibility of opinion shopping.

Keywords: Auditor independence, Auditor switching, Audit opinion

JEL Classification: M49, C12

Suggested Citation

Stanisic, Nemanja and Radojevic, Tijana and Stanic, Nenad and Rajin, Danica, The Association between Auditor Switching and Audit Opinion in the Republic of Serbia (December 4, 2015). Finiz Conference, Belgrade, 2015 , Available at SSRN: https://ssrn.com/abstract=2704642

Nemanja Stanisic (Contact Author)

Singidunum University - Department for Business Economics ( email )

Danijelova 32
Belgrade, 11000
Serbia

Tijana Radojevic

Singidunum University ( email )

Danijelova 32
Belgrade, 11000
Republic of Serbia

Nenad Stanic

Singidunum University ( email )

Danijelova 32
Belgrade, 11000
Republic of Serbia

Danica Rajin

Singidunum University ( email )

Danijelova 32
Belgrade, 11000
Serbia

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