The Effects of Joint Audits on Audit Quality and Audit Costs: A Game-theoretical Explanation for Contradictory Empirical Results

Biehl, Henrike; Bleibtreu, Christopher; Stefani, Ulrike

doi:10.2139/ssrn.3816011

Cited by 5 publications

(14 citation statements)

References 36 publications

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“…For instance, when investigating the impact of joint-audit on audit fees in Denmark, Holm and Thinggaard (2014) focus on whether shifting from joint to the single audit influences the fees, and they draw the inference of decrease, in the short run, when firms shift to single audit. This result is similar to the finding stating that the joint-audit corresponds to more elevated audit fees (Biehl et al, 2021). In addition, Andr e et al (2016) look into the difference between the joint-audit and the single audit fees in the UK and Italy.…”

Section: Audit Feessupporting

confidence: 83%

Assessment of joint audit mission quality in Tunisia

Abdelmoula¹

2022

EMJB

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PurposeUsing a sample of 250 Tunisian companies, this paper aims to assess the joint audit mission quality in Tunisia.Design/methodology/approachThe present work aimed at investigating the determining factors of the joint audit quality.FindingsA total of nine essential determining factors were predictably identified: length of service, experience, size asymmetry between the joint auditors, complexity, governance, expertise, information and communications technology use, profitability and staff qualification. However, results show that specialization, satisfaction, the supply of services other than audit, work distribution, leverage as well as size have a positive but non-significant correlation with the joint audit quality, which may be due to the Tunisian context.Originality/valueMany previous works have been conducted on joint audit in France (Haak et al., 2018), Denmark (Lesage et al., 2017), Germany (Velte and Azibi, 2015), Sweden (Zerni et al., 2012) and Italy (Bianchi et al., 2019). However, to the authors’ knowledge, the Tunisian context is still under-studied and, thus, the objective was to fill this gap in the literature b.y examining the determinants of the quality of joint audit in Tunisia.

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Section: Audit Feessupporting

confidence: 83%

Assessment of joint audit mission quality in Tunisia

Abdelmoula¹

2022

EMJB

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“…‫ا‬ ‫ا‬ ‫ا‬ ‫ت‬ ‫س‬ ‫تااارمس‬ ‫قلااراس‬ ‫ت‬ ‫افن‬ ‫تع‬ ‫ا‬ ‫اارمب‬ ‫ته‬ ‫اقم‬ ‫ا‬ ‫ت‬ ‫تلاارسس‬ ‫ا‬ ‫امب‬ ‫ت‬ ‫ام‬ ‫ت‬ ‫با‬ ‫فو‬ ‫عاا‬ ‫ا‬ ‫ياهق‬ ‫هذا‬ ‫قر‬ (e.g., Wang et al, 2008;Niskanen et al, 2011;Cho and Wu, 2014;Srinidhi et al, 2014;Abdel-Meguid et al, 2014;Chou et al, 2014;Darmadi, 2016;Alfraih, 2017;Quick et al, 2018;Yang et al, 2019 (e.g., Alanezi et al, 2012;Baldauf and Steckel, 2012;Zerni et al, 2012;Ratzinger-Sakel et al, 2013;Lobo et al, 2017;Holm and Thinggaard, 2018;Biehl et al, 2021…”

Section: ‫البحث‬ ‫ممخص‬unclassified

أثر نمط الملکیة على اختیار عمیل المراجعة مراقب حسابات متخصص صناعیًا وتبنی مدخل المراجعة المشترکة: دلیل تطبیقی من الشرکات المقیدة فی البورصة المصریة

زیتون¹

2022

مجلة الاسکندریة للبحوث المحاسبیة

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This research aimed to study and examine the relationship between the ownership style and auditor and external audit approach choice decisions, and the impact of the board governance on these relationships. By using a sample from the non-financial companies listed on the Egyptian Stock Exchange for the period starting from 2015 to 2019.The results indicated that: First; institutional ownership and foreign ownership (management ownership) have a positive and significant (has a negative and significant) affect industry-specialist auditor Choice decision. Second; foreign ownership (management ownership and institutional ownership) has a positive and significant (have a negative and significant) affect joint audit approach adoption decision. Third; foreign ownership (management ownership and family ownership) has a positive and significant (have a negative and significant) affect Big 4 auditor choice decision. Fourth; foreign ownership (management ownership) has a positive and significant (negative and significant) affects affect joint audit approach adoption decision through a Big 4 audit firm and another Non-Big 4 foreign audit firm, institutional ownership and foreign ownership have a positive and significant affect joint audit approach adoption decision through a Big 4 audit firm and another local and non-foreign audit firm. Finally; the probability that companies with the largest management ownership (foreign ownership) percentage will be more (decreased) choosing an industry-specialist auditor, Big 4 auditor, or adopting a joint audit approach than others when the board is more committed to corporate governance. Taken together, these results provide evidence that ownership style can effectively create economic forces that can justify changes in demand for the audit service quality. These findings also have important implications for regulators and auditors to understand the motives for Egyptian companies' choice of auditors, audit approach, and audit services market structure.

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“…There are many definitions that dealt with the concept of joint review, all of which were about considering the joint review, including two (or more) independent audit offices reviewing the client's financial statements and adhering to the mutual control mechanism, issuing a consolidated audit report they sign together and are jointly responsible for the information contained in the review report and for undetected errors (European Commission, 2011;Alanezi et al, 2012;Haridi, 2015;AL-Hadi et al, 2017;Velte, 2017;Ibrahim, 2018;Hussein, 2019;Nurunnabi et al, 2020, Biehl et al, 2021.…”

Section: Search Planmentioning

confidence: 99%

The Role Of Joint Review In Reducing Negative Profit Management Practices In Joint Stock Companies, Egypt

Wahba¹

2021

J. Organ. Behav. Res

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The review profession has recently faced a number of challenges, especially after the financial meltdowns experienced by many giants such as Enron. This was followed by the fall of one of the five largest audit offices, Arthur Anderson, for alleged involvement in the company's financial manipulations due to negative profit management practices, which raised many questions about the auditor's independence, the quality of audit performance and the underperformance of its programmers. This prompted scientific and professional organizations to look for methods and mechanisms through which such practices could be restricted, and the joint review is one of the mechanisms proposed by the European Commission in its 2010 Green Paper report, "Review Policy: Lessons from Crises", with the aim of improving the quality of the audit and supporting the independence of auditors. The joint review is based on the review of two or more independent audit offices reviewing the audit client's financial statements, preparing a single audit report and are jointly responsible for the information contained in the audit report and for undetected material errors. The goal of the research was to measure the impact of the application of the joint review on profit management by application to a sample of companies listed on the Egyptian stock market during the period (2016-2017), using discretionary entitlements as an indicator reflecting the negative profit management practices in the companies in question.

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The Effects of Joint Audits on Audit Quality and Audit Costs: A Game-theoretical Explanation for Contradictory Empirical Results

Cited by 5 publications

References 36 publications

Assessment of joint audit mission quality in Tunisia

Assessment of joint audit mission quality in Tunisia

أثر نمط الملکیة على اختیار عمیل المراجعة مراقب حسابات متخصص صناعیًا وتبنی مدخل المراجعة المشترکة: دلیل تطبیقی من الشرکات المقیدة فی البورصة المصریة

The Role Of Joint Review In Reducing Negative Profit Management Practices In Joint Stock Companies, Egypt

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