The Influence of Governance Mechanisms on the Quality of External Audits, Case of Moroccan Companies Listed on the Stock Exchange

Objectives: The objective of this paper is to study the impact of governance mechanisms on the quality of the external audit of Moroccan companies listed on the Casablanca Stock Exchange. Methods: The study was based on a sample of 47 companies evaluated as part of our research for the 2022 financial year. Results: The results of our tests showed that governance mechanisms have a heterogeneous impact on audit quality. We note the importance of the size of the board of directors, the presence of outside directors, and the duality of the board in guaranteeing better audit quality. However, the expertise of audit committees and the concentration of capital in the hands of a minority lead to a deterioration in audit quality. For the control variables, the size and age of the company are two opposing factors: size stimulates the quality of the audit, while age remains a factor that hinders this quality. Finally, debt is a variable without any influence. Conclusion: Governance mechanisms play a significant role in determining the quality of external audits among Moroccan companies listed on the Casablanca Stock Exchange. While certain factors such as board size and the presence of outside directors enhance audit quality, others like audit committee expertise and concentrated capital ownership have negative impacts. Additionally, company size positively influences audit quality, whereas company age has a detrimental effect, with debt showing no significant influence.