A0804
Title: Joint audit, competence, independence, judgement, scepticism, bias mitigation, audit quality
Authors: Oliver Marnet - University of Southampton (United Kingdom) [presenting]
Abstract: Joint audits have been identified as a potential measure to address deficiencies in the audit function identified as an outcome of investigations into the 2008-2009 global financial crisis. However, possible adoption of joint audits is a highly controversial issue. Arguments against their implementation are primarily based on concerns about cost and a perceived lack of evidence on their benefits. Arguments in their favour focus on their ability to enhance audit quality. The debate is widen by reflecting on joint audits from a behavioural perspective. Auditors operate at the centre of a complex interaction between heuristics and biases which can affect the quality of judgement and decision-making that underpin the audit opinion. It is suggested that the impact of social and psychological factors on auditor independence and competence is less pronounced under joint audit arrangements than for a single engagement team. Theoretical frameworks derived from behavioural research are evaluated to guide future applied studies on the potential of joint audits in bias mitigation and enhancement of scepticism.
