The Impact of Working Relationships in the Accounting and Audit Cycle

This study evaluates literature on the wheel of audit partners in Chinese companies and institutions by examining the impact of relationships before and after the rotation between the input and output partners. We consider the partners in the rotation before the rotation, before the work relationship. We find two different results from the previous working relationships: (a) increasing the likelihood of the outgoing partners after the cooling period, and (b) reducing the quality of the audit and lower accounting after the rotation. These findings ask whether the rotational partners are truly independent of the working relationships.