| dc.description.abstract | This study investigates the relations between auditor tenure and the level of accounting conservatism, and evaluate whether seven-year audit partner rotation requirement specified in the Auditing Standard Bulletin No. 46 is needed. In addition, we also extent to investigating the effect of audit-firm tenure and audit-firm size on the level of accounting conservatism. Our samples include 1673 observations of TSE (Taiwan Stock Exchange) firms from 1996 to 2002, and we measure of conservatism and timely based on Basu (1997) asymmetric timelines of earnings model. From the view point of 2009 regulation, we next partition the sample into less 7 years and excess 7 years based on the length of auditor tenure. our empirical evidence reveals that nonlinearity in the relation between conservatism and auditor tenure. The longer the auditor tenure, the better report of conservative earning, but excess 7 years results in lower report of conservative earning. In nonlinearity audit-firm tenure, the results indicate that report of conservatism earning is higher for longer tenure and relatively lower short tenure and medium tenure, suggest the report earnings conservatism when audit-firm tenure is longer,. Secondly, we find that reporting of conservative earnings of Big four clients is significantly higher than for non-Big four clients, suggest reporting of conservative earnings for Big four clients is conservatism. From accounting conservatism view, our empirical evidence support to Mandatory CPA Rotation’ rule in Taiwan since 2009, in addition, finding that reporting of conservative earnings for audit-firm tenure in longer and Big four clients is conservatism. | en_US |