The Audit Market Dynamics in a Mandatory Joint Audit Setting: The French Experience
| Autor: | Charles Piot, Lamya Kermiche |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
050208 finance
business.industry 05 social sciences Economics Econometrics and Finance (miscellaneous) Accounting 050201 accounting Audit plan Audit Market concentration Auditor independence Performance audit Internal audit Joint audit 0502 economics and business Information technology audit Business Finance |
| Zdroj: | Journal of Accounting, Auditing & Finance. 33:463-484 |
| ISSN: | 2160-4061 0148-558X |
| DOI: | 10.1177/0148558x16680716 |
| Popis: | Policy makers in France have considered joint audits as a solution to mitigate the audit market concentration and the “systemic” risk associated with Big 4 auditors. We implement a Markovian analysis where audit clients chose between different types of combinations across Big 4 and smaller auditors. Our main findings support the view that the French joint audit system is effective in maintaining market openness and in mitigating the Big 4 domination in the long run. An investigation of the determinants driving changes in joint audit combinations suggests little economic support in favor of two Big 4 combinations, whereas changes in audit clients’ agency costs (e.g., higher ownership concentration) tend to explain the performance of mixed and two non-Big 4 combinations. Overall, this study supports the European Commission’s position on the potential benefits of joint audits in mitigating the market concentration; it also suggests that it might not be necessary to impose mixed joint audits to achieve that objective. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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