Audit quality

A cross-national comparison of audit regulatory regimes

Research output: Contribution to journalArticleResearchpeer-review

10 Citations (Scopus)

Abstract

The importance of fostering more accurate audits has been heightened by a series of highprofile accounting scandals at the beginning of the millennium. These scandals prompted more stringent regulations over corporate governance and financial reporting and the creation of audit oversight bodies as the Public Company Accounting Oversight Board (PCAOB) in the United States and the Public Oversight Board (POB) in the United Kingdom. In parallel, the growing globalization of business has brought forth calls for adherence to a common set of International Financial Reporting Standards (IFRS). Even if a common standard is promulgated, it will not lead to similar results if implementation differs across countries. Therefore, it is important to investigate the auditing regulatory regimes in different nations and the status of cross-border audit inspections. Accordingly, we begin by describing the cross-national institutions (e.g., the International Federation of Accountants [IFAC]) that impact national regulatory choices. Then we survey the audit regulatory practices of public company auditors of a select group of major economic powers and based on this analysis, we discuss the challenges and obstacles to engaging in intra-national audit, cross-national audit/inspections, and the challenges posed by differences in auditing standards used in various linked (e.g., by joint ventures, etc.) nations. We include in this discussion the effects of national culture, investor legal protection, economic development, and differing financial standard sources.

Original languageEnglish
Pages (from-to)61-87
Number of pages27
JournalJournal of Accounting, Auditing and Finance
Volume29
Issue number1
DOIs
StatePublished - 1 Jan 2014

Fingerprint

Cross-national comparison
Audit
Regulatory regime
Audit quality
Oversight
Inspection
Scandal
Cross-national
Auditors
International Financial Reporting Standards
Federation
Auditing
Cross-border
Joint ventures
Investors
Auditing standards
Economic power
Economic development
Adherence
Financial reporting

Keywords

  • Audit quality
  • Auditing
  • ISA
  • International
  • PCAOB
  • Regulation

Cite this

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Audit quality : A cross-national comparison of audit regulatory regimes. / Kleinman, Gary; Lin, Beixin; Palmon, Dan.

In: Journal of Accounting, Auditing and Finance, Vol. 29, No. 1, 01.01.2014, p. 61-87.

Research output: Contribution to journalArticleResearchpeer-review

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