The Effects of a Long term Auditor- Client Relationship on the Quality on an Audit

Long-term auditor - the impact of customer relationships on audit quality. A case study of AMG Global Masvingo. Chapter 1 Introduction This chapter provides background information on the insights and issues of organizations under review. In the following chapter we will address the problem description, topics, small research questions, research objectives, and the importance of research. In this chapter we will also investigate the scope and limitations of the research. The definition of technical terms is at the end of this chapter.

The study of Geiger and Ragnandan (2002) investigated the relationship between the terms of office of the auditor and the deficiencies of the audit report, according to the view on the issue of the Securities and Exchange Commission. Their papers provide insight into various aspects of the auditor's term of office and the quality of the audit. From the viewpoint of regulation, the term of office of long-term auditors leads to a decline in the quality of audits. From an economic point of view, the quality of the audit has been compromised in the past year due to the lack of low profile or customer account fluency. Their research has found that there is a positive correlation between research variables; from the perspective of the audit company's shorter period, audit report failures are more likely.

In the relationship between auditor and customer as a variable affecting the quality of audit, the audit company is considered to be a major cause of accounting positions other than public accounting because a high turnover rate provides a large number of alumni in the market I will. As a result, former employees of the audit corporation may become potential customers through senior management or membership of the audit committee, and these relationships affect the audit independence (and the quality of the audit) It is proposed to give. However, regulatory and academic interests are primarily focused on the direct impact of employees of the auditing firm (graduate) on the quality of the audit employed by the audit client, which is not uncommon.

The auditor's service relationship raises two kinds of independence issues. First of all, the audit personnel are in danger of dealing with audit clients, especially when there is a high probability that non-audit service relationships will generate tremendous revenue in addition to audit relations. Second, there are unique conflicts that are incompatible with objectivity when the auditor provides some sort of non-audit service. Ojo (2009) suggests that auditing firms that provide non-audit services do not necessarily affect auditor independence. However, if the cost of non-audit work is relatively high (proportional to the audit fee acquired by such accounting firm), the auditor's ability to deprive the profit could be detrimental to the independence of the auditor There is sex. Available contracts He made qualified comments on the financial statements being audited.