The authors also look at whether these organisations actually improve audit quality. Their work was published in a recent issue of the Journal of Accounting Research (1 of the top 3 premier journals in accounting). The publication is particularly timely, as the European Commission announced a consultation on reforming audit supervision in September 2025.

Academic input

Based on the findings in the publication, Thuerheimer has taken part in bilateral stakeholder discussions with staff of the Directorate-General for Financial Stability, Financial Services, and Capital Markets Union of the European Commission. She provided academic input into the consultation process late last year. The researchers hope that their insights into the design of public audit oversight will help inform further harmonisation and strengthening of audit supervision in Europe.

Why some countries move faster than others

The researchers analysed the introduction of POBs and their key design features (type of oversight, oversight frequency, transparency about inspections, and enforcement) across many jurisdictions over a long period. They find clear differences in how quickly countries adopt this type of oversight. Countries with strong public institutions, a civil law tradition, and high media attention to audit quality tend to establish POBs earlier. Public debate and trust in institutions appear to play an important role in pushing reforms forward.
Interestingly, while countries often choose similar ways to design their oversight bodies, these design choices are not closely linked to the factors that explain why some countries act sooner than others.

Do oversight bodies improve audit quality?

The study also looks at whether public audit oversight leads to better audits. Although the US oversight body is often viewed as effective, it was unclear whether this effect holds internationally.

Based on 2 decades of cross-country data, the researchers find some evidence that introducing a POB can improve audit quality, especially when certain design features are in place. However, the results depend on how audit quality is measured and on the research method used, meaning that the positive effects should be interpreted with care. The study further shows mixed but suggestive links between POBs’ enforcement strength, disclosure of inspection findings, oversight structure, and audit quality.

Why this research is important

This is the first large-scale, international study of how public audit oversight bodies emerge, how they are designed, and what they achieve. The findings show that oversight can make a difference, but that context and design choices matters. For policymakers, the study highlights that the effectiveness of public oversight depends not just on its existence, but also on how it is designed.