Duration of auditor and client relationship in Malaysia

The main purpose of this study is to examine the duration of the auditor-client relationship and the factors that affect audit firm tenure in Malaysia. The duration of the relationship is considered to potentially affect the independence of the auditor. In the past, several studies have been conducted using audit firm tenure as an independent variable. This study examines the duration of the auditor-client relationship in Malaysia to determine which factors contribute to changes in that relationship. Upon examination of 297 companies listed on the KLSE over a period of eleven years, it was observed that the overall mean audit tenure is six years. This study established evidence that there is no difference in the mean audit tenure between Big 5 and non-Big 5 audit firms. Additionally, the study found that audit tenure is affected by the size of the client company but not by the growth of the client company, the size of the audit firm, or client risk. The findings of this study provide additional insight into the nature of the auditor-client relationship in Malaysia and may be helpful in future audit research to shape the nature of an independent variable for tenure, thereby improving the future audit research process.