Abstract

The auditor's rotation is one of the factors influencing the quality of auditing being considered in recent years. Auditing is a vulnerable profession because auditors on the one hand, as other economic units, need customers to earn money in the exchange for providing services and, on the other hand, must maintain their professional independence and try not to be affected by the influence of their customers. The auditor's independence and audit quality can be influenced by the lengthy relationship between the auditor and the client. As a result, this relationship can distort the auditor's independence and thus affect the level of earnings conservatism. As a result, this relationship can distort the auditor's independence and thus affect the level of earnings conservatism. Regarding this relationship, which may alter the auditor's independence, the auditor's quality, and earnings quality, this research attempts to examine the effect of auditors' rotation on earnings management. The method of this study is library method. Findings of the research indicate that, given the specific circumstances of each country, the same procedure cannot be adopted for the rotation or non-rotation of auditors.