Abstract
<p>This study examines the effect of regulatory changes on audit quality in the French context. The evaluation of the risks and the anomalies carried out by the auditors brings them control relating to the financial statements of the company in order to express an opinion on the effectiveness, the regularity, the sincerity and the faithful image of these documents, in a large complexity of the organizations the objective of this research consists in studying the effect of the evolutions of the regulation as regards legal audit on the estimate of the probability of having an opinion of audit with reserve which reinforces the independence of the auditor.</p>A list of hypothesis related to the approached problems is proposed followed by an overview of the different theoretical propositions which are in place. From a sample of French companies in the SBF 250 over the period 2002-2011, the results show that the analysis of the conditions of receiving a qualified audit opinion is determined by: the variables of the financial health of the company, the inventory receivables which indicate the complexity of the audited firm and the characteristics of the audit.
Highlights
The role of the financial information and the accountant is very important to ensure the good performance of a firm, so it is necessary to reinforce the modes of controls while being based on the regulation and the modernization of operation of the auditor in order to achieve his mission under the best conditions by ensuring responsibility for the certification of their opinion.In 2002, Carol Lambert and Claude Cazes find that: “The Enron business asked the question of the reliability of the information given to the thirds about the accounts of a company and that of the guarantee that the audit as for the sincerity of these accounts brings
The increasing instability of the environment, the increasingly large complexity of the organizations and the increasingly strong interdependence of their activities encourages the appearance of the management of results aiming for the covering of the visibility of the weak performances with the company for that the evolution of the accounting standards authorizes the evolution in mode of control in order to slow down these operations by improving the quality of the financial and accounting information
The literature shows that the evolutions of the accounting standards and the emergence of the new regulations are adopted in order to improve quality of audit and to control the management of result operations in order to obtain a good system of governance
Summary
The role of the financial information and the accountant is very important to ensure the good performance of a firm, so it is necessary to reinforce the modes of controls while being based on the regulation and the modernization of operation of the auditor in order to achieve his mission under the best conditions by ensuring responsibility for the certification of their opinion.In 2002, Carol Lambert and Claude Cazes find that: “The Enron business asked the question of the reliability of the information given to the thirds about the accounts of a company and that of the guarantee that the audit as for the sincerity of these accounts brings. The increasing instability of the environment, the increasingly large complexity of the organizations and the increasingly strong interdependence of their activities encourages the appearance of the management of results aiming for the covering of the visibility of the weak performances with the company for that the evolution of the accounting standards authorizes the evolution in mode of control in order to slow down these operations by improving the quality of the financial and accounting information. That the central role of the audit is the management of the discretionary decisions of the leaders and their influences on the contents of the financial statements while confronting the independence of the auditor, because while referring to the international standards of audit one finds that the auditor must express his opinion with reserve in a situation which limits the development of its tasks
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call