Evaluating the Influence of Auditor Tenure and Rotation on Quality of Internal and External Audits

Posted: Mar 09, 2022

• Freya Walsh
• Emilia Dunn
• Zane Warren

Abstract

The relationship between auditor tenure, rotation policies, and audit quality represents a fundamental concern in corporate governance and financial regulation. This research addresses limitations in existing literature by introducing a novel computational framework that comprehensively evaluates how temporal factors influence audit effectiveness across both internal and external audit domains. The paper develops a multi-dimensional audit quality assessment framework, introduces a methodology combining machine learning with network analysis, provides comparative analysis of tenure effects across audit functions, and identifies optimal rotation strategies that balance knowledge retention and independence maintenance.