In both France and Italy a legal requirement has exist- ed for many years requiring that at least two statutory auditors be appointed for all audits of public compa- nies. Marmousez (2009) found that the appointment of two Big 4 auditors for the same audit in France produced a higher quality audit than if only one Big 4 auditor was paired with a non-Big 4 firm, thus indicat- ing the potential for increased audit quality through the appointment of two auditors. Our paper seeks to describe the historical developments underlying the appointment of more than one auditor in France and Italy. We believe that our analysis will provide some insights into the legal and economic rationales for this unusual type of corporate governance mechanism.
Historical Origins Of The Legal Requirement To Appoint More Than One Statutory Auditor In Certain Countries
CAMODECA, Renato Salvatore;CANZIANI, Arnaldo
2011-01-01
Abstract
In both France and Italy a legal requirement has exist- ed for many years requiring that at least two statutory auditors be appointed for all audits of public compa- nies. Marmousez (2009) found that the appointment of two Big 4 auditors for the same audit in France produced a higher quality audit than if only one Big 4 auditor was paired with a non-Big 4 firm, thus indicat- ing the potential for increased audit quality through the appointment of two auditors. Our paper seeks to describe the historical developments underlying the appointment of more than one auditor in France and Italy. We believe that our analysis will provide some insights into the legal and economic rationales for this unusual type of corporate governance mechanism.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
