Emmanuel Attah Kumah Amponsah, Freda Quarshie, Stephen Owusu Afriyie, George Ampong Oppong Appiagyei, Michael Nana Owusu-Akomeah, Joseph Asare, Richard Amponsah
This study examines the critical roles of audit rotation and size of audit committee in enhancing audit quality among non-financial firms that are publicly traded on the Ghana Stock Exchange. The study aims to achieve three key objectives. Firstly, to test the influence of audit rotation on audit quality. Secondly, to examine the impact of audit committee on audit quality. Finally, to analyse the moderating role of audit committee in the relationship between audit rotation and audit quality. An explanatory research design was employed to examine these objectives, and the two-step system generalised method of moments (GMM) was utilised on a sample of 19 firms. The study found evidence to support the notion that audit rotation harms audit quality. In addition, the empirical evidence revealed that larger audit committees have a positive impact on audit quality. Finally, the study discovered that larger audit committees can moderate the negative consequence of audit rotation on audit quality. The study recommends that policymakers consider revisiting regulations regarding mandatory audit rotation to ensure that they do not harm audit quality. These findings succours investors to make more informed investment decisions by considering the role of audit rotation on financial reporting quality.