Audit Firms Affiliated with Foreign Firms Provide Higher Quality, Bypassing Big 4 Dominance
The research aimed to see how different types of auditors affect the quality of audits in Egypt between 2011-2018. They looked at whether big audit firms, foreign affiliations, government agencies, and local firms impact audit quality. The study found that audits done by foreign-affiliated audit firms were generally of higher quality compared to others. Surprisingly, Big 4 auditors didn't always show higher quality than other firms. Government agencies handling audits in state-owned companies didn't necessarily lead to better quality audits. Local audit firms, on the other hand, were linked to lower audit quality, maybe to attract clients who don't need high-quality audits. The results suggest that the quality of audits depends on the type of auditor, which could be crucial for investors and regulators concerned about audit quality.