A cross-national study of the extent of adoption of international standards on auditing: do institutional factors matter?
A cross-national study of the extent of adoption of international standards on auditing: do institutional factors matter?
Drawing from neo-institutional perspective theory, this study investigates for the first time the determinants of the extent of adoption of International Standards on Auditing (ISAs) on a cross-national basis. Our findings suggest that the protection of minority interests, regulatory enforcement, lenders/borrowers rights, foreign aid, prevalence of foreign ownership and educational attainment are observed to be significant predictors of the extent of ISA adoption. Coercive and mimetic pressures are seen to have a greater impact on ISA adoption relative to the efficiency-led and normative factors. We argue that the ‘one-size fits all’ approach spearheaded by international agencies (e.g. World Bank) to strengthen national audit practices is largely inadequate. Effectively, these agencies need to consider how national institutions may first need to be reformed if there is to be a realistic prospect of positive outcomes flowing from ISA adoption.
Boolaky, Pran Krishansing
01bd3e37-9c5b-43d9-bb3a-50e9249b0966
Soobaroyen, Teerooven
6686e2f8-564f-4f7f-b079-9dc8a2f53a48
Boolaky, Pran Krishansing
01bd3e37-9c5b-43d9-bb3a-50e9249b0966
Soobaroyen, Teerooven
6686e2f8-564f-4f7f-b079-9dc8a2f53a48
Boolaky, Pran Krishansing and Soobaroyen, Teerooven
(2014)
A cross-national study of the extent of adoption of international standards on auditing: do institutional factors matter?
4th African Accounting and Finance Association (AAFA) Conference, Cape Town, South Africa.
02 - 04 Sep 2014.
51 pp
.
Record type:
Conference or Workshop Item
(Paper)
Abstract
Drawing from neo-institutional perspective theory, this study investigates for the first time the determinants of the extent of adoption of International Standards on Auditing (ISAs) on a cross-national basis. Our findings suggest that the protection of minority interests, regulatory enforcement, lenders/borrowers rights, foreign aid, prevalence of foreign ownership and educational attainment are observed to be significant predictors of the extent of ISA adoption. Coercive and mimetic pressures are seen to have a greater impact on ISA adoption relative to the efficiency-led and normative factors. We argue that the ‘one-size fits all’ approach spearheaded by international agencies (e.g. World Bank) to strengthen national audit practices is largely inadequate. Effectively, these agencies need to consider how national institutions may first need to be reformed if there is to be a realistic prospect of positive outcomes flowing from ISA adoption.
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e-pub ahead of print date: 2 September 2014
Venue - Dates:
4th African Accounting and Finance Association (AAFA) Conference, Cape Town, South Africa, 2014-09-02 - 2014-09-04
Organisations:
Centre of Excellence for International Banking, Finance & Accounting
Identifiers
Local EPrints ID: 377580
URI: http://eprints.soton.ac.uk/id/eprint/377580
PURE UUID: aa2f5635-4abc-4efb-a8d7-8d836d2903d2
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Date deposited: 09 Jun 2015 13:34
Last modified: 23 Jul 2022 02:01
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Contributors
Author:
Pran Krishansing Boolaky
Author:
Teerooven Soobaroyen
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