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Disciplinary practices and auditors in Europe: a comparison between Germany and the Netherlands

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  • Ivo Blij
  • Harold Hassink
  • Gerard Mertens
  • Reiner Quick

Abstract

This paper presents the results of a comparative study on auditor responsibility within two members of the European Union: Germany and the Netherlands. Auditor responsibility is an important factor in establishing audit quality. The quality of service within the auditing profession is maintained through the promulgation of professional standards and disciplinary law. In Germany, the Wirtschaftspruferkammer is the supervisory body which oversees compliance with standards and professional duties. In the Netherlands, a special court (Raad van Tucht) is concerned with disciplinary actions against auditors. The results of this study show that the disciplinary laws, regulations and professional codes remain basically national, despite efforts to harmonize auditing to meet an increased demand for international audits. This study identifies characteristics of disciplinary systems common to both countries and provides information on the functioning of both systems that may be useful in a number of ways. The results presented might initiate a more systematic comparison of disciplinary systems within members of the European Union, which would enhance institutional knowledge of the European market for auditing services. This in turn could promote the process of further integration of the internal European market and reduce market inefficiencies.

Suggested Citation

  • Ivo Blij & Harold Hassink & Gerard Mertens & Reiner Quick, 1998. "Disciplinary practices and auditors in Europe: a comparison between Germany and the Netherlands," European Accounting Review, Taylor & Francis Journals, vol. 7(3), pages 467-491.
    • Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:467-491
    DOI: 10.1080/096381898336385
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    References listed on IDEAS

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    1. Palmrose, Zv, 1991. "Trials Of Legal Disputes Involving Independent Auditors - Some Empirical-Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 29, pages 149-185.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Robson, Keith & Willmott, Hugh & Cooper, David & Puxty, Tony, 1994. "The ideology of professional regulation and the markets for accounting labour: Three episodes in the recent history of the U.K. accountancy profession," Accounting, Organizations and Society, Elsevier, vol. 19(6), pages 527-553, August.
    4. Parker, Lee D., 1994. "Professional accounting body ethics: In search of the private interest," Accounting, Organizations and Society, Elsevier, vol. 19(6), pages 507-525, August.
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    1. Steven Maijoor & Ann Vanstraelen, 2006. "Earnings management within Europe: the effects of member state audit environment, audit firm quality and international capital markets," Accounting and Business Research, Taylor & Francis Journals, vol. 36(1), pages 33-52.
    2. C. Richard Baker & Alain Mikol & Reiner Quick, 2001. "Regulation of the statutory auditor in the European Union: a comparative survey of the United Kingdom, France and Germany," European Accounting Review, Taylor & Francis Journals, vol. 10(4), pages 763-786.
    3. Benoît Pigé, 2000. "Audit quality and Corporate governance : an analysis of French audit regulations [Qualité de l'audit et gouvernement d'entreprise : le rôle et les limites de la concurrence sur le marché de l'audit," Post-Print halshs-03425760, HAL.
    4. 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.
    5. Stefano Azzali & Tatiana Mazza & Fernanda Alberto, 2021. "Effects of disclosed audit sanctions on audit firm’s market share in Italy and Spain," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 2477-2505, April.

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