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The introduction of legal audit within French universities: The impact on the managerial latitude of managers
[L'introduction de l'audit légal au sein des universités françaises : l'impact sur la latitude managériale des dirigeants]

Author

Listed:
  • Hamza El Kaddouri

    (University of Bedfordshire)

  • Modar Ajeeb

    (ESPI2R - Laboratoire ESPI2R Research in Real Estate [Bordeaux] - ESPI - Ecole Supérieure des Professions Immobilières)

Abstract

The adoption of the Law relative to the Liberties and Responsibilities of Universities (LRU) in 2007 has sought to ―modernize‖ the governance system of French universities. Article 18 of this Law stipulated ―the accounts of the university are subject to an annual audit by a legal auditor‖ (Law no. 2007–1199 of 10 August 2007). This paper explores management teams‘ perceptions of the role of legal audit in the governance system of French universities and its impact on the managerial latitude of university managers. Based on twenty-five interviews carried out with members of the management teams in three universities, the results of this study are threefold. Firstly, legal audit plays a disciplinary role by reducing the information asymmetry and cognitive conflicts between university managers and the stakeholders involved in governance particularly the financial supervisory authorities and the accounting agency. Secondly, the audit report is used by university managers to reinforce the legitimacy and the objectivity of their decisions, in the face of internal and external political pressure coming mainly from the university council, faculties, and the supervisory authorities. Thirdly, legal audit plays a complementary role to the governance system in place, including the controls of the accounting agency, the Council, and the Rectorate. Therefore, the results of this research are part of an integrated governance approach (Wirtz, 2006) which is characterized by the complementarity between the disciplinary and cognitive dimensions (Williamson, 1991; Charreaux, 1997).

Suggested Citation

  • Hamza El Kaddouri & Modar Ajeeb, 2021. "The introduction of legal audit within French universities: The impact on the managerial latitude of managers [L'introduction de l'audit légal au sein des universités françaises : l'impact sur la l," Post-Print halshs-04246174, HAL.
    • Handle: RePEc:hal:journl:halshs-04246174
    DOI: 10.22495/cgsrv5i2p3
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04246174
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    References listed on IDEAS

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    1. Marie Boitier & Anne Rivière, 2013. "Are French universities under control?," Public Money & Management, Taylor & Francis Journals, vol. 33(2), pages 105-110, March.
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    3. Marie Boitier & Anne Rivière, 2013. "Freedom and responsibility for French universities: from global steering to local management," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 26(4), pages 616-649, May.
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    6. Gérard Charreaux, 2002. "Variation sur le thème:"À la recherche de nouvelles fondations pour la finance et la gouvernance d'entreprise"," Revue Finance Contrôle Stratégie, revues.org, vol. 5(3), pages 5-68, September.
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    8. Céline Chatelin & Hamza El Kaddouri, 2017. "Mise en place de l’audit légal dans les universités : quelles légitimités ? ; ”Implementation of Legal Audit Within Universities: what types of legitimacy are involved ?," Post-Print halshs-03590454, HAL.
    9. Élisabeth Bertin & Christophe Godowski, 2012. "Le processus global d'audit : source de développement d'une gouvernance cognitive ?," Comptabilité - Contrôle - Audit, Association francophone de comptabilité, vol. 18(3), pages 145-184.
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