22Aug 2017

AUDITING FIRMS IN THE MOROCCAN MARKET: A STUDY BASED ON CONFIDENCE, DATA FROM 2012 TO 2017.

  • Department of Economics and Management Sciences,Faculty of law and Economics, University Mohammed V Rabat, Morocco.
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In this research, we report the results by means of Moroccan investigation of the relation between auditor firm choice (confidence) and factors that have impact on the level of that confidence in external audit bodies. But how can we appreciate auditing firm?s governance? In this case, distinctions are to be made between small and medium structures and deep pockets (fat four) that are represented by the big4 firms affiliated to the multinational networks. Using a logistic regression, we show that some combinations of factors from the model are explaining our dependant variable. From case studies and a qualitative approach, we conclude that some parameters are influencing differently the choice of the auditor in the case of Moroccan market. These parameters are justified by means of a quantitative approach (a sample of 100 accountants and auditors from big and non-big Moroccan audit firms from north of Morocco). As a result, Moroccan professionals interviewed prefer audits conducted by large audit firms because they perceive that these firms, on average, are providing relatively higher audit quality.They consider that after the crisis of Enron, mergers and acquisitions of bodies by other networks, the big 4 firms have not lose a lot in confidence they are profiting of in the Moroccan market. Therefore, the greater the level of high quality and specialization are demanded in the Moroccan market, the more likely that a firm will continue to provide audits conducted by a large audit firm. Finally, these are other factors determining the choice of auditor, which are positively associated with the confidence in auditor (dependent variable). Audit quality, responsibility, regulation, engagement of human resources in auditing firms can explain choice of big 4 in Morocco. Thus, look for branding name and an international signature, transfer of knowledge, specialization that permit the big 4, are explaining why choosing big 4 auditor, or the migration from a big to another big 4 firm even in network?s crisis era.

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[CHEGRI Badre Eddine, EL MENZHI Kaoutar and AIT KASSI Mustapha. (2017); AUDITING FIRMS IN THE MOROCCAN MARKET: A STUDY BASED ON CONFIDENCE, DATA FROM 2012 TO 2017. Int. J. of Adv. Res. 5 (Aug). 1330-1343] (ISSN 2320-5407). www.journalijar.com

AIT KASSI MUSTAPHA
Department of Economics and Management Sciences, Faculty of law and Economics University Mohammed V Rabat, Morocco

DOI:

Article DOI: 10.21474/IJAR01/5187      
DOI URL: https://dx.doi.org/10.21474/IJAR01/5187

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