Does the Length of the Cooling-Off Period Affect Audit Quality?
研究了澳大利亚冷却期长度与审计质量的关系，发现合伙人轮换回客户时冷却期越长审计质量越高，但冷却期内两者负相关，且延长冷却期对轮换回时的审计质量提升有限。
SUMMARY This paper examines the association between the length of the cooling-off period and audit quality: (1) when partners rotate back and (2) during the cooling-off period, ahead of an extension to the minimum cooling-off period requirement in Australia. Using multiple measures of audit quality, we find some evidence of a positive association between the cooling-off period length and audit quality when partners rotate back, yet evidence of a negative association between the two, during the cooling-off period. We also find that auditor and client characteristics—such as partner busyness, client knowledge, geographic proximity, and client importance—play important roles in determining the cooling-off period length and whether a partner rotates back onto a client. Overall, we provide timely evidence that extending the cooling-off period only marginally enhances audit quality when a partner rotates back onto a client, and evidence of an unintended consequence of this policy during the cooling-off period. Data Availability: Data are publicly available. JEL Classifications: M42.