TY  - JOUR
AB  - Purpose– The purpose of this paper is to analyze the effect of the length of the audit firm‐client relationship and the size of the audit firm on audit quality in Jordan.Design/methodology/approach– To test their hypotheses, the authors use the quadratic form approach, similar to Chi and Huang, with some modifications. The population of this study encompasses all firms in which stock is publicly traded on the Amman Stock Exchange throughout the years (2002‐2006).Findings– Statistical analysis of data shows that, audit firm tenure affects the audit quality adversely (negatively). Audit quality deteriorates, when audit firm tenure is extended as a result of the growth in the magnitude of discretionary accruals. Meanwhile, data analysis did not reveal that the audit firm size has any significant impact on the correlation between audit firm tenure and audit quality.Practical implications– If auditor independence and audit quality are to be enhanced, the audit firm should be rotated in order to open the door for new auditors to investigate the client with greater scrutiny and due care. Moreover, the activities of big audit firms should be monitored in order to distinguish their role from small firms.Originality/value– The paper provides evidence from a developing country about audit quality. It is expected to support and sustain improvement of audit quality, and therefore, financial reporting quality. The evidence provided by this paper adds to the literature internationally and this is important because auditing is a socially constructed phenomenon.
VL  - 26
IS  - 4
SN  - 0268-6902
DO  - 10.1108/02686901111124648
UR  - https://doi.org/10.1108/02686901111124648
AU  - Abedalqader Al‐Thuneibat Ali
AU  - Tawfiq Ibrahim Al Issa Ream
AU  - Ata Baker Rana Ahmad
PY  - 2011
Y1  - 2011/01/01
TI  - Do audit tenure and firm size contribute to audit quality? Empirical evidence from Jordan
T2  - Managerial Auditing Journal
PB  - Emerald Group Publishing Limited
SP  - 317
EP  - 334
Y2  - 2024/04/24
ER  -