Joint audit and audit quality

Marnet, Oliver

doi:10.2139/ssrn.3912540

Cited by 2 publications

(2 citation statements)

References 47 publications

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“…A joint audit is one in which the financial accounts of a single customer are externally audited by two independent auditors from two independent audit firms. As a result, agreement is established (Marnet, 2021). Two independent audit teams collaborate to compare and contrast their findings on the client's financial reports during a joint audit.…”

Section: Joint Auditmentioning

confidence: 97%

“…Two independent audit teams collaborate to compare and contrast their findings on the client's financial reports during a joint audit. Marnet (2021) asserts that when two audit firms collaborate, they produce a solitary audit report and jointly express an opinion about the financial accounts. The audit planning and fieldwork are evenly split between the two audit firms to avoid any assignments being repeated.…”

Section: Joint Auditmentioning

confidence: 99%

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Auditors’ Attributes and Firm Value of Listed Nigerian Service Firms

IZUKWE

Jeroh

2022

Financ. account. res. j.

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This study assesses the statistical association between the qualities of auditors and the value of Nigerian listed companies. The study used secondary data that came from the publicly available financial records of 22 Nigerian service listed companies. The investigation was conducted during a ten-year span from 2011 to 2020. The panel data for all the variables included in this study were examined with descriptive statistics, diagnostic tests, and inferential statistics. The study assessed company value using Tobin's Q. Due to the nature of the investigation, a linear model was constructed and verified using simple regression analysis. According to the study's statistical findings, audit fees and firm worth are significantly correlated; while audit tenure and joint audit continued to have a negligible impact on business value. The study found that the characteristics of auditors as a whole had a considerable impact on the value of listed service firms in Nigeria. Based on the findings, the study suggests that service firms in Nigeria shorten the audit tenure because it doesn't seem to have a substantial impact on business value. Service companies should hire reputed auditors at higher rates because they are thought to increase the reliability of financial records and improve corporate performance. Keywords: Audit Fee, Audit Tenure, Joint Audit, Firm Value, Tobin’s Q.

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Section: Joint Auditmentioning

confidence: 97%

Section: Joint Auditmentioning

confidence: 99%

Auditors’ Attributes and Firm Value of Listed Nigerian Service Firms

IZUKWE

Jeroh

2022

Financ. account. res. j.

View full text Add to dashboard Cite

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Audit consortium impact on audit quality assessment: evidence from Egypt

AbuRaya

2023

JFRA

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Purpose Audit consortium of joint and dual audits is one of the most controversial mechanisms aimed at improving audit quality and resolving several related debatable issues. This study aims to empirically investigate the impact of audit consortium on audit quality assessment in Egypt. It specifically examines whether audit opinion modification level is triggered by joint and dual audits existence and whether it is influenced by the relative importance of the auditor pair combination types. Design/methodology/approach A sample of companies listed on the Egyptian Stock Exchange constituting the EGX 30 index is examined over a period of five years, from 2016 to 2020. A quantitative research methodology is used, using content analysis of companies’ audit reports and carrying out longitudinal panel ordinary least squares multiple regression tests. Findings Results show that audit quality is significantly enhanced by conducting joint and dual audits of Egyptian companies’ financial statements. Findings indicate that both joint and dual audits significantly increase auditors’ propensity to modify audit opinions as compared to companies that engage in single audits. However, this increase in audit quality is not supported by the presence of Big 4 joint auditors or affiliated joint auditors, while the impact of Big 4 dual auditors cannot be confirmed. Nevertheless, such a potential increase in audit opinion modification is boosted by the presence of affiliated dual auditors, which appears to translate into higher quality. Research limitations/implications The study has important implications for researchers, corporates, those charged with governance, financial statement users, auditors, regulators and standard setters, who might be interested in whether an audit consortium and a particular auditor pair combination are associated with superior audit quality. It provides empirical evidence that might contribute to the continuous challenge of promoting the quality and effectiveness of the external audit. Originality/value This study adds to the relatively limited and challenging literature on the potential contribution of audit consortium, using audit opinion modification level as a direct assessment of audit quality. It extends the scope of prior research by examining the existence of joint and dual audits and the relative importance of joint and dual auditor pair combination types. The study provides key insights from a distinctive and complex emerging audit market.

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Joint audit and audit quality

Cited by 2 publications

References 47 publications

Auditors’ Attributes and Firm Value of Listed Nigerian Service Firms

Auditors’ Attributes and Firm Value of Listed Nigerian Service Firms

Audit consortium impact on audit quality assessment: evidence from Egypt

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