This study explores the effect of audit partner specialist tenure
on audit quality and the complementary effect of audit partner industry tenure
and audit tenure. This study first examines audit partnersí effect on audit
quality in the early period of their tenure, and we expect to see inferior
audit quality during this period. Next, we investigate the moderating effect of
audit partner specialist tenure on audit quality; that is, we inspect whether
audit partner specialist tenure can compensate for audit partnersí insufficient
professional knowledge in the early period of their tenure. This study
discovers that since the second modification of the Taiwanese audit partner
rotation system in 2009, audit partnersí first audit still generates negative
effects on audit quality; however, after audit partners accumulate experience
in the industry, they can effectively ameliorate the negative effect generated
during their first audit.
JEL classification numbers: M42.
Keywords: Audit partner specialist tenure, Complementary effect, Audit
partner tenure, Audit quality.