Joint audit work allocation in the mandatory joint audit setting: a comparative study between the developed and the emerging economies

This study investigates the effects of joint audit work allocation on audit quality, fees, and report delays. It analyzes data from 347 non-financial listed firms in France and Morocco. Audit fee shares serve as a proxy for workload distribution. The findings reveal notable differences between France and Morocco. At the macro level, there is no statistically significant relationship between joint audit work allocation and either audit quality or audit report delays in France. However, greater imbalances in work allocation are associated with higher audit fees. In Morocco, greater imbalances in the allocation of work are associated with lower audit quality, higher fees, and longer delays. At the joint audit pair level, most pairs in both countries exhibit no significant relationship between work allocation and audit quality, fees, or report delays. Nevertheless, specific French and Moroccan pairs with greater imbalances in work allocation experience higher audit fees and longer delays. Regarding company size, joint audit work allocation has a minimal effect on audit quality, fees, and delays among large firms. As unbalanced joint audits have parallels to single audits, our findings contribute to current discussions of their comparative advantages and disadvantages. This study provides valuable and practical insights for a wide audience, including investors, board members, practitioners, academics, and policymakers.