2019A01 - Economic consequences of joint audits (Prof. dr. Schatt)

What?

This research synthesis will present and discuss: (1) institutional aspects of joint audits: the genesis of their use in France (where it is mandatory) and in other countries, and the current interest in the UK and in The Netherlands; (2) academic arguments and empirical results concerning joint audits, in particular about the impact on market competition (i.e. market structure), audit quality and audit costs, including joint audit effectiveness.

Why?

The proposed practice note is relevant to regulators and auditors in The Netherlands in light of the recent debate on whether  joint audits could increase the quality of the statutory audit by reducing the oligopoly of the Big 4 audit firms and by having the “two audit firms and auditors keeping each other sharp (the ‘four-eyes’ principle)”.

Knowledge Dissemination

2020 FAR International online Conference Summary
- Presentation - Alain Schatt
- Video
- Follow-up Q&A

FAR Practice Note and Working Paper: Economic Consequences of Joint Audits

FAR Conference Proceeding (with Q&A): Economic Consequences of Joint Audits

Summary report Masterclass 11 March 2022