Why Companies Change Auditors in Zimbabwe? (2003-2013)

Abstract

The purpose of this research was to establish the underlying factors that cause companies ‘to change auditors or switch from one auditor to another in Zimbabwe. This was motivated by the need to see if a relationship existed between auditor switch and variables such as qualified opinion, non-audit services, audit fees, audit quality, change in C.E. O and company size.  The rising concern for auditor switch and the costs both direct and indirect attached to this decision and the absence of relevant studies in Zimbabwe motivated this project. Various authors were consulted on the problem above and they gave an insight to the problem. This study employed descriptive research design as its methodology because this design allows for the establishment of relationships and it is also used to obtain information concerning the current status phenomena that describes ‘what exists’ with respect to variables or conditions in a situation. The researcher used questionnaires as primary data collection tool and several publications to get secondary data. It was observed that audit fees, non-audit services, audit quality, change of management and company size among other factors play a role in companies switching from one auditor to another.

Key words: auditor switch, factors causing auditor switch, Zimbabwe.