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Bilanzskandale ‐ Eine institutionenökonomische Analyse

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  • Christian Müller

Abstract

In this paper, recent accounting scandals in Germany are traced back to a serious incentive problem in German auditing law. Since the auditor depends economically on his client, contrary to the legislator's intention, a factual forcing contract is established which enables the client to control his auditor's performance almost completely. As a solution to this problem the proposal of a Demsetz auction of the auditing monopoly is developed, including a mandatory rotation of auditing firms. I shall argue that this proposal not only alleviates the problem of auditing fraud in an incentive‐compatible way but may also serve as an effective barrier against concentration in the auditing market.

Suggested Citation

  • Christian Müller, 2004. "Bilanzskandale ‐ Eine institutionenökonomische Analyse," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 5(2), pages 211-225, May.
    • Handle: RePEc:bla:perwir:v:5:y:2004:i:2:p:211-225
    DOI: 10.1111/j.1468-2516.2004.00148.x
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    References listed on IDEAS

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    1. Sinn, Hans-Werner, 1997. "The selection principle and market failure in systems competition," Journal of Public Economics, Elsevier, vol. 66(2), pages 247-274, November.
    2. repec:mhr:untord:urn:isbn:9783163450837 is not listed on IDEAS
    3. Quick, Reiner & Marten, K.-U. & Ruhnke, K., 2001. "Wirtschaftsprüfung, Grundlagen des betriebswirtschaftlichen Prüfungswesens nach nationalen und internationalen Normen," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 67734, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Arrunada, Benito & Paz-Ares, Candido, 1997. "Mandatory rotation of company auditors: A critical examination," International Review of Law and Economics, Elsevier, vol. 17(1), pages 31-61, March.
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