The effect of applying joint auditing in reducing agency problems: Applied research in private joint stock companies / Khaleeji Commercial Bank

Abstract

This study aimed to choose the effect of applying joint audit in reducing agency problems by choosing more than one auditor involved in the audit process by the joint audit method, which is one of the audit methods where two independent auditors are assigned to audit the financial statements and issue a joint report for which they are jointly responsible. This type has appeared in many countries in the recent period, especially after the recent global financial crises, in order to restore the confidence of the users of these reports Based on the agency theory, the management seeks to exploit the powers granted to it to show the positive aspects of the management of those companies and to appear before the owners in good condition, taking advantage of flexibility in accounting standards, in addition to paying attention to personal interests at the expense of the owners For the purpose of limiting these practices and actions, several mechanisms must be followed by the owners to reduce the conflict of interest between managers and owners and to limit the manipulation of financial and accounting policies, and one of these mechanisms is joint auditing