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This study examines whether auditor rotation and client importance affect lenders’ perceptions of auditor independence, financial statement reliability and loan decisions. This study uses a 2x2 between-subjects experimental design that manipulates rotation (partner and firm) and client importance (2% and 60% of audit revenue). The between-subjects experiment gathers responses from 111 lenders randomly selected from the Hugo-Dunhill database. Results indicate that lenders perceptions of independence are significantly higher for main effects of firm rotation (vs. partner rotation) and for less important (vs. more important) clients. Perceptions of reliability (intentional) and loan approval are higher for less important clients. ). This study indicates that regardless of the level of client importance, all audit firms could experience a boost in perceived independence by the implementation of firm rotation.