Policy makers have considered joint-audits as a solution to mitigate the audit market concentration and the “systemic” risk associated with Big 4 auditors. Using the French system as a relevant joint-audit laboratory, we implement a Markovian analysis to infer the long-term market structure...

This article analyzes the power dynamics in the audit regulatory space in France following the adoption of the Loi sur la Sécurité Financière (Financial Security Law) in August 2003. By examining the way that the Haut Conseil du Commissariat aux Comptes (H3C) established and defended its...