Attachments between directors and auditors: do they affect engagement tenure?

Auditors and directors may develop personal attachments over time based on trust and familiarity, and these personal ties seem important for the maintenance of long-term auditor-client relationships. This study examines the tenure of the audit engagement in the presence of these links, which is expected to be longer than auditor-client relationships not so linked. Results indicate director-auditor links are positively associated with auditor tenure and the retention of auditors beyond the critical four-year period identified by Levinthal and Fichman (1988).