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Public oversight systems for statutory auditors in the European Union

Author

Listed:
  • Beatriz García Osma

    (Universidad Autónoma de Madrid)

  • Ana Gisbert

    (Universidad Autónoma de Madrid
    Universidade de São Paulo)

  • Elena Heras Cristóbal

    (Universidad Autónoma de Madrid)

Abstract

We provide a comparative overview of the process of implementation, harmonization and stabilization of public oversight systems for statutory auditors across the European Union (EU) after Directive 2006/43/EC. We build on institutional change theory to identify potential determinants as to why some countries still lag in this harmonization process. Oversight systems are a key institutional factor to guarantee the quality of financial information, essential to maintain investors’ confidence and deep and stable capital markets. Thus, the harmonization of these systems has long been an objective of the EU. Our analyses serve to identify, analyse and compare how EU countries have incorporated European-wide requirements into their national legal systems. Particularly, we study: (1) basic characteristics of the system and bodies for public oversight, (2) organizational structure, (3) financing (4) transparency, (5) supervisory, and (6) disciplinary mechanisms. We show that significant diversity still exists across systems and that both the incentives for institutional change and the distance between pre-existing systems and the Directive are important explanatory factors of the achieved level of harmonization.

Suggested Citation

  • Beatriz García Osma & Ana Gisbert & Elena Heras Cristóbal, 2017. "Public oversight systems for statutory auditors in the European Union," European Journal of Law and Economics, Springer, vol. 44(3), pages 517-552, December.
    • Handle: RePEc:kap:ejlwec:v:44:y:2017:i:3:d:10.1007_s10657-014-9460-1
    DOI: 10.1007/s10657-014-9460-1
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    More about this item

    Keywords

    Auditing; Directive 2006/43/EU; Institutional differences; Oversight systems; Disciplinary systems; Harmonization; Accounting;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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