Notes

Note 1。 Beginning 31 August 1993, companies seeking listing on Bursa Malaysia are required to have audit committee under s15A of Bursa Malaysia listing requirement。

Note 2。 Among main functions of audit committee are reviewing audit planning and audit procedures and discussing audit findings and report (MIA recommended practice guide on Audit Committee & section 344A Bursa Malaysia listing requirements)。

Note 3。 VIF ranges from 1。0408 to 1。441。

Note 4。 Two assumptions of heteroskedasticity and autocorrelation are considered and corrected in the multivariate regression analysis。

Table 1。 Studies of audit tenure on auditor reporting

Studies Measurement of audit tenure Country Sample Audit tenure to auditor reporting

Geiger and Raghunandan (2002) Natural log of number of years U。S。 117 stressed & bankrupt companies Positive

Anandarajan, La Salle and Anandarajan (2001) Dichotomous value, 1 for audit tenure of three years or less & 0 otherwise U。S。 Two partition of 216 for financial service & 307 from non-financial service industry Negative

Vanstraelen (2000) Number of years Belgium 146 match sample of stressed & non-stressed non-bankrupt companies Negative

Louwers (1998) Number of years U。S。 808 stressed non-bankrupt companies Not significant

Table 1 shows relevant studies on the audit tenure variable in relation to the auditors’ reporting。 It can be said that, in empirically studies, the audit tenure variable is still new though debates on audit tenure have gone through times and tides for four decades。 Results are inconclusive like many other researches in auditing。 Thus prompting for a need of a new study in a new environment especially in new emerging markets like Malaysia。

Table 2。 T-test of Big Five and Non-Big Five

Variables Big Five (means) Non Big Five (means) t-value Sig。

TENURE (in years) 10。5 7。26 2。820 0。005

GOING CONCERN 0。82 0。70 1。863 0。064

ACOM 0。33 0。26 0。910 0。364

DFT 0。66 0。61 0。657 0。512

ZFC 15。63 22。99 -0。805 0。422

TOTAL ASSETS (RM) 679,922,418 471,684,583 0。767