Relationship Between Auditor Rotation and Audit Quality of Insurance Companies in Kenya
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Date
2022Author
Bageni, Conceptor N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Firms tend to be attached so much to their auditors and this is a major contributor to low quality of audits. Auditors’ independence is very key in the firm’s quest to attain the best quality audits in the auditing profession. Because it is an essential component of the broader economy's infrastructure and acts as its backbone, the insurance sector has a substantial influence on the rate of economic expansion. This study set out to answer the question, "Is there a correlation between auditor rotation and the quality of audits performed by insurance companies in Kenya?" This research was grounded on the agency theory, the information theory, and the assurance theory. Descriptive research methods were used for this investigation. All 55 insurance companies were selected as the study population so that enough data could be collected to investigate the effects of auditors' rotation on audit quality. Both primary and secondary resources were used in this investigation. Questionnaires were employed for the main data collection. Both open-ended and closed-ended questions were included in these surveys. This investigation used regression analysis to ascertain the effect of AR on AQ. Alternatively, descriptive data such as mean and standard deviation were used to assess the extent to which auditors' rotation is employed by insurance firms. The study's results support the idea that auditor rotation improves the quality of audits conducted by insurance companies. Furthermore, the study's results show that an increase in Additional services does, in fact, contribute in an improvement in the overall audit quality of insurance organizations. It was shown that the audit fees paid by insurance companies improved the quality of audits performed on such companies. Furthermore, the study's results suggest that audit team characteristics positively impacted insurance firms' audit quality..
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1311]
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