The Effect of Audit Firm Tenure on Audit Quality in Botswana

Abstract

The primary objective of this research is to check hoe tenure of auditor is affecting the audit quality. It also tries to establish whether mandatory audit firm rotation need to be started in Botswana or not. The study was descriptive in nature and a sample of 3 Accounting Firms and 12 Accountants from companies was drawn from the list of accredited auditors and listed companies on the Botswana Stock exchange. Data collected was analysed using statistical analyses software package, SPSS version 21 in order to determine the audit quality level in relation to audit tenure. Audit quality was determined from the analysis of different factors affecting audit report quality, frequency tables where used to analyse the responses of the sample population. The findings proved that a prolonged Audit tenure results in impaired audit quality. It was recommended that there is need to develop alternative measures to safeguard auditor’s quality.