اثر التدقيق المشترك وتدوير المدقق في الحد من عدم تماثل المعلومات في الوحدات الاقتصادية

Abstract

This study examines the effects of joint auditing and auditor rotation on the mitigation of information asymmetry in organizations, amid increasing attention on audit quality and its contribution to improving financial statement transparency. The research problem is based on the disparity of information between management and other users of financial information as a result of poor disclosure practices or biased reporting of data.

The purpose of the study is to examine the ways of improving audit quality by means of collaboration of auditors during joint auditing and the influence of auditor rotation on independence and objectivity. In addition, the study will address the correlation between audit quality and information asymmetry as well as the effect of both factors.

Results reveal a substantial long-run effect of auditor rotation on reducing information asymmetry. Conversely, a short-run negative effect is found in relation to the ineffectiveness of a newly assigned auditor because of lack of knowledge about an organization.

Based on results obtained, the research concludes that there should be developed a policy of auditor rotation that ensures independence and does not affect adversely audit quality. Also, the coordination among auditors performing joint audit should be improved.