An Examination of Ex-Arthur Andersen Clients: Where Are They Now?
PublisherThe University of Arizona.
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AbstractIn this paper, I am examining the retention rates of the clients of their public accounting firm Arthur Andersen, following their demise in 2002. In order to do so, I look at whether or not the former Arthur Andersen clients experienced a lower retention rate with their successor auditor. I expect that ex-Andersen clients did experience a lower retention rate with their new auditor (that is, they were more likely to switch auditors again in a later year) due to high audit fees, practice of fraud, or reputation of the successor auditor. I find significant results in the overall examination and in auditor reputation, suggesting that former Arthur Andersen clients did experience a lower retention rate with their new auditor, possibly due to a need to switch to a Big 4 auditor.
Degree ProgramHonors College