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Purpose – The purpose of this paper is to examine the impact of ethnicity on auditor choice for Malaysian listed companies. Design/methodology/approach – This study evaluates the effects of various independent variables on auditor choice behaviour, particularly ethnicity of auditor and ethnicity of management, using a logistic regression analysis approach for 300 companies listed on the Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange-KLSE) over an 18 year period. Findings – Auditor choice is shown to be significantly influenced by client firm's characteristics, notably changes in management, complexity, and financial risk, lending support to the findings of previous survey studies. Ethnicity was found to be a significant factor influencing auditor choice only for auditor switches between non-Big 4 and Big 4 firms. Research limitations/implications – A number of important variables such as corporate governance characteristics, audit fees, client size, and growth that might enhance an understanding of auditor choice behaviour in Malaysia were not incorporated in the regression models, and might be considered in future studies. Originality/value – The results presented in the paper have important implications for both the auditing profession and regulators in Malaysia. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine two factors which influence auditor change: audit and client firms' characteristics, for Malaysian listed companies. Given the costs involved, it is important to understand the reasons why companies change their auditor and choose a particular level of audit assurance. Design/methodology/approach – This study evaluates the effects of various independent variables on auditor change behaviour and the sensitivity of results to alternative period measurement by using logistic regression analysis. Findings – An examination of 400 companies listed on the Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange-KLSE) over a period of 18 years reveals auditor change to be significantly influenced by client firm's characteristics, notably changes in management, size of the client firm, complexity, and client's firm growth, lending support to the findings of previous survey studies. Research limitations/implications – In the cause of brevity, a number of potentially important variables, that might enhance an understanding of auditor change behaviour in Malaysia, were not incorporated in the regression models, and might be considered in future studies. Originality/value – The results presented in the paper have important implications for both the auditing profession and regulators in Malaysia. [ABSTRACT FROM AUTHOR]

Purpose ? The main purpose of this paper is to examine one aspect of auditor-client relationship, namely audit tenure and switching behaviour, and factors affecting it. Lengthy audit tenure with the same client has been cited as one of the threats to auditor independence. Given the importance of this issue, this research attempts to shed some light on the effect of audit tenure and switching behaviour on auditor independence in Malaysia. Design/methodology/approach ? This study evaluates the effects of various independent variables on switching behaviour and audit tenure using logistic regression analysis. Findings ? An examination of 297 companies listed on the Kuala Lumpur Stock Exchange over a period of 11 years reveals audit firm switching to be significantly associated with distressed large clients and that the length and direction of switch depend upon the type of audit firm. Research limitations/implications ? A number of important variables such as corporate governance characteristics, audit and non-audit fees and types of audit opinion that could enhance our understanding of audit tenure and auditor switching in Malaysia, were not incorporated into our regression models. Hence, future studies may consider such variables. Originality/value ? This study is the first conducted using Malaysian data where audit tenure and switching are used as dependent variables. The results have important implications on the auditing profession and regulators in Malaysia. [ABSTRACT FROM AUTHOR]