The auditing profession has been confronted with numerous challenges, particularly following the financial crises involving major corporations such as Enron. These events were further exacerbated by the downfall of Arthur Anderson, one of the top five audit firms, due to its alleged involvement in the manipulation of financial statements through negative profit management practices. This situation has led to heightened concerns about auditor independence, audit quality, and the effectiveness of audit teams. In light of these challenges, both academic and professional bodies have sought new strategies to address such issues. One of the proposed solutions, presented by the European Commission in its 2010 Green Paper Review Policy: Lessons from the Crises, is the concept of joint reviews. This approach involves multiple independent audit firms reviewing a client’s financial statements, preparing a combined audit report, and jointly assuming responsibility for the accuracy of the report and any undetected material errors. The study aimed to assess the impact of joint reviews on profit management, specifically examining a sample of companies listed on the Egyptian Stock Exchange from 2016 to 2017, using discretionary accruals to indicate negative profit management practices in these companies.
