IDEAS home Printed from https://ideas.repec.org/a/taf/acceur/v9y2012i1p17-38.html
   My bibliography  Save this article

EC Green Paper Proposals and Audit Quality

Author

Listed:
  • Reiner Quick

Abstract

In order to restore confidence in financial statements the European Commission proposes different measures to enhance audit quality. This paper examines potential effects of selected proposals on audit quality in the light of prior research findings. It concludes that an increased emphasis on substantive audit procedures may not be beneficial and that joint audits potentially improve competition and audit quality, but might increase audit fees. An appointment by a third party would strengthen auditor independence. The overall impact of a mandatory rotation of audit firms is unclear due to opposite effects on auditor competence and auditor independence. The provision of non-audit services might affect independence in appearance negatively. However, a total ban would not be necessary. Finally, a limit to the proportion of fees an audit firm can receive from a single client as well as a capping of non-audit fees seem to be desirable.

Suggested Citation

  • Reiner Quick, 2012. "EC Green Paper Proposals and Audit Quality," Accounting in Europe, Taylor & Francis Journals, vol. 9(1), pages 17-38, June.
    • Handle: RePEc:taf:acceur:v:9:y:2012:i:1:p:17-38
    DOI: 10.1080/17449480.2012.664398
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17449480.2012.664398
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17449480.2012.664398?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laura Sierra & Ana Zorio & María A. García‐Benau, 2013. "Sustainable Development and Assurance of Corporate Social Responsibility Reports Published by Ibex‐35 Companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(6), pages 359-370, November.
    2. Quick, Reiner & Schmidt, Florian, 2018. "Do audit firm rotation, auditor retention, and joint audits matter? – An experimental investigation of bank directors' and institutional investors' perceptions," Journal of Accounting Literature, Elsevier, vol. 41(C), pages 1-21.
    3. Christopher Bleibtreu & Stephan Ulrike Stefani, 2013. "The Effects of Mandatory Auditor Rotation on Low Balling Behavior and Auditor Independence," Working Paper Series of the Department of Economics, University of Konstanz 2013-14, Department of Economics, University of Konstanz.
    4. Justin Logie & Warren Maroun, 2021. "Evaluating Audit Quality Using the Results of Inspection Processes Performed by an Independent Regulator," Australian Accounting Review, CPA Australia, vol. 31(2), pages 128-149, June.
    5. Mohamed M. El-Dyasty & Ahmed A. Elamer, 2022. "Multiple audit mechanism, audit quality and cost of debt: empirical evidence from a developing country," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(3), pages 264-281, September.
    6. Patrick Velte & Carl-Christian Freidank, 2015. "The link between in- and external rotation of the auditor and the quality of financial accounting and external audit," European Journal of Law and Economics, Springer, vol. 40(2), pages 225-246, October.
    7. Anna Samsonova-Taddei & Javed Siddiqui, 2016. "Regulation and the Promotion of Audit Ethics: Analysis of the Content of the EU’s Policy," Journal of Business Ethics, Springer, vol. 139(1), pages 183-195, November.
    8. Florian Hoos & Jorien Louise Pruijssers & Michel W. Lander, 2019. "Who’s Watching? Accountability in Different Audit Regimes and the Effects on Auditors’ Professional Skepticism," Journal of Business Ethics, Springer, vol. 156(2), pages 563-575, May.
    9. Stamatios Dritsas & George Petrakos, 2018. "Risk of Material Misstatement in Fluctuated Economic Environments: The Case of Greece," International Business Research, Canadian Center of Science and Education, vol. 11(6), pages 243-248, June.
    10. Jean Damascene Mvunabandi & Haruna Maama, 2023. "The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 13(5), pages 119-127, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acceur:v:9:y:2012:i:1:p:17-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAIE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.