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Article Dans Une Revue Contemporary Accounting Research Année : 2017

The Effect of Joint Auditor Pair Composition on Audit Quality: Evidence from Impairment Tests

Résumé

Using a sample of firms from France, where the law requires the use of two auditors, we study the effect of auditor pair composition on audit quality by examining a specific account, goodwill impairment. We document that firms audited by a Big 4–non‐Big 4 auditor pair (BS) are more likely to book an impairment and book a larger impairment than firms audited by a Big 4–Big 4 auditor pair (BB) when low‐performance indicators suggest a greater likelihood of impairment. Moreover, firms audited by a BB pair reduce impairment disclosures when they book impairments, while firms audited by a BS pair do not, suggesting lower transparency for firms audited by a BB pair. Our results inform investors and firms in mandatory joint audit regimes, as well as regulators who are considering requiring joint audits.
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Dates et versions

hal-01821839 , version 1 (22-06-2018)

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Gerald J. Lobo, Luc Paugam, Dana Zhang, Jean-François Casta. The Effect of Joint Auditor Pair Composition on Audit Quality: Evidence from Impairment Tests. Contemporary Accounting Research, 2017, 34 (1), ⟨10.1111/1911-3846.12244⟩. ⟨hal-01821839⟩
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