The Impact of Auditor Tenure on Auditor Independence and Objectivity in Indonesia
Keywords:
Auditor Tenure, Auditor Independence, Objectivity, Audit Quality, Literature ReviewAbstract
This study aims to examine the impact of auditor tenure on auditor independence and objectivity through a literature review approach. Auditor tenure, defined as the length of the auditor-client relationship, has been widely debated in academic literature due to its potential influence on audit quality. Proponents argue that longer tenure improves auditor expertise and understanding of the client’s business, while critics suggest it may impair independence and reduce objectivity due to increased familiarity and potential conflicts of interest. This paper reviews and synthesizes findings from previous empirical and theoretical studies to explore the dual nature of auditor tenure. The literature indicates mixed results, with some studies showing a negative impact on independence and objectivity, while others find no significant effect or even positive outcomes. This review highlights the importance of regulatory oversight, mandatory rotation policies, and audit committee involvement in maintaining audit quality. The findings contribute to a deeper understanding of the auditor-client dynamic and provide recommendations for future research and policy development
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