Assessing Joint Audit Efficiency: Evidence from Impairment-Testing Disclosures
Casta, Jean-François; Paugam, Luc (2012), Assessing Joint Audit Efficiency: Evidence from Impairment-Testing Disclosures. https://basepub.dauphine.fr/handle/123456789/14121
TypeDocument de travail / Working paper
Series titleCahier de recherche DRM
MetadataShow full item record
Abstract (EN)We examine the consequences on impairment testing disclosures of auditor-pair choice made by French listed companies where two (joint) auditors are required by law. Managers are likely to manipulate impairment-testing disclosures since it relies on unverifiable fair value estimates (e.g., goodwill). Using a disclosure score for firms composing the French SBF 120 index from 2006 to 2009, we demonstrate that combination of Big 4 / non-Big 4 auditors generate higher impairment-related disclosures levels whereas the other combinations, i.e. two Big 4 or two non-Big 4, tend to decrease the level of impairment-related disclosures. We suggest that heterogeneous auditor pair is less likely to exhibit groupthinking. These results are robust to various controls variables (e.g., size, risk, year and firm fixed effects) and tend to partly challenge results from recent literature.
Subjects / KeywordsVérification comptable; Impairment Test; Normes comptables internationales; IAS 36; Groupthink; Divulgation en comptabilité; Joint Audit; Commissaires aux comptes; Disclosures
Showing items related by title and author.
Lobo, Gerald J.; Paugam, Luc; Zhang, Dana; Casta, Jean-François (2017) Article accepté pour publication ou publié