Český finanční a účetní časopis 2016(3):59-71 | DOI: 10.18267/j.cfuc.480

Rotation of auditors of companies listed on the stock market of the Prague Stock Exchange

Michal Šindelář
Michal Šindelář; katedra finančního účetnictví a auditingu, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <michal.sindelar@vse.cz>.

The aim of the article is to analyze the internal and external rotation of auditors on the stock market of Prague Stock Exchange. The analysis is made between the years 2011 - 2015 and is based on a total of 107 annual reports of listed companies. The annual report must contain the auditor's report for the period. Rotation of auditors is recently frequent topic of international research because of the new European regulation of the audit market. Following these international research this article contains the analysis of the Czech capital market. Data shows that on the Czech capital market there are fairly frequent changes of audit firms and key audit partners due to the number of listed companies. The analysis also shows the growing influence of the Big 4 companies (KPMG, Deloitte, PwC and EY (Ernst & Young)) in the number of audits carried out.

Keywords: Internat rotation; External rotation; Oligopoly structure on audit market; Prague Stock Exchange.
JEL classification: M42

Published: October 1, 2016  Show citation

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Šindelář, M. (2016). Rotation of auditors of companies listed on the stock market of the Prague Stock Exchange. Czech Financial and Accounting Journal, 2016(3), 59-71. doi: 10.18267/j.cfuc.480
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