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MANDATORY JOINT AUDIT AND AUDIT QUALITY IN THE CONTEXT OF THE EUROPEAN BLUE CHIPS

Authors: Garcia-Blandon, Josep; Castillo-Merino, David; Argilés-Bosch, Josep M.; Ravenda, Diego;

MANDATORY JOINT AUDIT AND AUDIT QUALITY IN THE CONTEXT OF THE EUROPEAN BLUE CHIPS

Abstract

This study investigates audit quality under joint and single audit regimes with a sample of large European firms. Both, the economic relevance of these companies, and the fact that the impact of joint audit on audit quality should be stronger when the audited company is a blue-chip firm motivate the study. If mandatory joint audit were positively associated with audit quality, French firms, under mandatory joint audit since 1966, should present higher audit quality compared to their European peers. The results do not indicate this to be the case. Specifically, similar levels of discretionary accruals are observed for French and other European firms. Furthermore, for the first time in the literature, evidence is reported indicating that French firms may even present lower audit quality than their European peers, when audit quality is measured by the likelihood of just beating earnings benchmarks. These results are expected to inform the ongoing debate in several countries about joint audits.

Keywords

HF5001-6182, audit firm type, Legislació, M42, Legislation, Discretionary accruals, Audit quality, standard and poor’s 350 europe,, audit quality, Business, Standard and Poor’s 350 Europe,, earnings benchmarks, discretionary accruals, Auditoria, ddc:650, Standard and Poor's 350 Europe, Auditing, 33, Europe, Audit firm type, Empreses auditores, Mandatory joint audit, mandatory joint audit, Accounting firms, Europa, Earnings benchmarks, Standard and Poor’s 350 Europe

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
views
OpenAIRE UsageCountsViews provided by UsageCounts
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8
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