The Impact of Mandatory Change of External Auditor in Reducing the Risk of Material Misstatements in The Financial Statements: A Field Study of Auditors in The Republic of Yemen

Mazen Saeed Qaid  Al-sabrey; Ashal Al-Haythami Muhammad  Ashal

Article Details

The Impact of Mandatory Change of External Auditor in Reducing the Risk of Material Misstatements in The Financial Statements: A Field Study of Auditors in The Republic of Yemen

Authors:

Mazen Saeed Qaid Al-sabrey | Ashal Al-Haythami Muhammad Ashal

Publisher:

University of Science and Technology, Yemen

Journal:

Journal of Social Studies Vol.32 Issue 1, pp.0-0

Document Type:

Article

Publication Date:

1/2026

Document Language:

English

Document ID (Org No.):

2001536872

pISSN:

2312-5268

Keywords:

Abstract:

 This study aimed to identify the effect of mandatory rotation of external auditors on reducing the risks of material misstatements in financial statements. It examined the psychological impact of mandatory rotation on auditors and their professional behavior and its role in lowering misstatement risks. The study adopted a descriptive analytical approach, using a questionnaire, SPSS and STATA 14 for statistical analysis, and SmartPLS3 for structural equation modeling. The population consisted of licensed auditors in audit offices and firms in the Republic of Yemen, totaling 428 auditors in 2024 according to the Yemeni Association of Certified Public Accountants. A random sample of 207 respondents was selected, and 180 valid questionnaires were analyzed. The findings showed a statistically significant effect of mandatory external auditor rotation on reducing the risks of material misstatements in financial statements. Professional skepticism was the most influential dimension, while the learning curve had the least effect. The study recommended regulating auditor–client tenure, increasing awareness of mandatory rotation, strengthening professional skepticism, supporting auditor independence, enhancing oversight of prior auditors’ performance, adapting international regulations locally, establishing an independent professional body to supervise auditing, and addressing learning curve and cost challenges.

Article Details

The Impact of Mandatory Change of External Auditor in Reducing the Risk of Material Misstatements in The Financial Statements: A Field Study of Auditors in The Republic of Yemen

Authors:

Mazen Saeed Qaid Al-sabrey | Ashal Al-Haythami Muhammad Ashal

Publisher:

University of Science and Technology, Yemen

Journal:

Journal of Social Studies Vol.32 Issue 1, pp.0-0

Document Type:

Article

Publication Date:

1/2026

Document Language:

English

Document ID (Org No.):

2001536872

pISSN:

2312-5268

التغيير الإلزامي لمراجع الحسابات الخارجي

مخاطر التحريفات الجوهرية في القوائم المالية

Issues

Article Details

The Impact of Mandatory Change of External Auditor in Reducing the Risk of Material Misstatements in The Financial Statements: A Field Study of Auditors in The Republic of Yemen

Authors: Mazen Saeed Qaid Al-sabrey | Ashal Al-Haythami Muhammad Ashal

Publisher: University of Science and Technology, Yemen

Journal: Journal of Social Studies Vol.32 Issue 1, pp.0-0

Document Type: Article

Publication Date: 1/2026

Document Language: English

Document ID (Org No.): 2001536872

pISSN: 2312-5268

التغيير الإلزامي لمراجع الحسابات الخارجي

مخاطر التحريفات الجوهرية في القوائم المالية

Issues

Authors:

Mazen Saeed Qaid Al-sabrey | Ashal Al-Haythami Muhammad Ashal

Publisher:

University of Science and Technology, Yemen

Journal:

Journal of Social Studies Vol.32 Issue 1, pp.0-0

Document Type:

Article

Publication Date:

1/2026

Document Language:

English

Document ID (Org No.):

2001536872

pISSN:

2312-5268