The Perceptions and Determinants of Auditing and Reporting Quality in the Asia-Pacific Region

A country’s institutional environment significantly influences perceptions of auditing and reporting quality (ARQ) at the national level. Relying on a relatively unique measure of ARQ, collated by the World Economic Forum (WEF), we evaluate the influence of nine key isomorphic pressures on the ARQ in 26 Asia-Pacific countries. The results suggest that six of these (the efficacy of the corporate board, securities exchange regulations, reliance on professional management, protection of minority interests, adoption of international financial reporting and prevalence of foreign ownership) have a highly significant influence on the perception of ARQ whereas adoption of international standards on auditing is only moderately significant. However, contrary to expectations, our findings do not support the argument that the efficiency of legal frameworks and political systems significantly influence the perceptions of auditing and reporting quality in the Asia-Pacific region. These results should be of use to investors and the accounting profession in evaluating economic environments

Why Do African Countries Adopt IFRS? An Institutional Perspective

We examine the institutional drivers of International Financial Reporting Standard (IFRS) adoption in Africa. The study covers all 54 African countries and relies on data from 2010 to 2015. Our results support the neo-institutional theoretical predictions that coercive, mimetic, and normative isomorphism influence IFRS adoption in Africa, although the circuits of isomorphic pressures differ from previous studies investigating adoption at the worldwide level and in emerging economies. Specifically, we find evidence of the influence by the World Bank (WB) and International Monetary Fund (IMF) on African countries made subject to the Report on Observance of Standard and Codes (ROSC) Accounting and Auditing program of assessment. We also found that the presence of global audit firms and the number of years of IFAC membership are strongly associated with a country’s decision to adopt IFRS. Also, countries with a more structured and active professional accounting organization are more likely to adopt IFRS. Our findings provide insights into the significant role played by local professional accounting organizations in the promotion of IFRS. Furthermore, our study adds to the literature by providing empirical evidence that the nature of the isomorphic pressures in Africa are different from those suggested in prior studies and reinforces the view that IFRS adoption is primarily driven by social and political dimensions rather than the economic ones usually professed by IFRS proponents

International Standards on Auditing (ISAs): conflicting influences on implementation

This chapter sets the scene for further research and empirical forays on the adoption and use of auditing standards generally, and ISAs specifically, by providing (i) a review of the (limited) academic literature on ISAs, (ii) a broad picture of ISA ‘implementation’ (or the apparent variations or lack of implementation) in developing and emerging economies and (iii) a specific illustration of how ISAs have permeated a developing economy (Egypt)

Corporate governance compliance and disclosure in the banking sector: using data from Japan

Using regression model this study investigates which characteristics of a bank is associated with the extent of corporate governance disclosure in Japan. The findings suggest that on average 8 banks out of a sample of 46 disclose optimal corporate governance information. The regression model results reveal in general that non-executive directors, cross-ownership, capital adequacy ratio and type of auditors are associated with the extent of corporate governance disclosure. Of these four variables, non-executive directors have a more significant impact on the extent of disclosure contrary to total assets and audit firms of banks in the context of Japan. The findings of this paper are relevant for corporate regulators, professional associations and developers of corporate governance code when designing or updating corporate governance code

Corporate governance compliance and disclosure in the banking sector: using data from Japan

Using regression model this study investigates which characteristics of a bank is associated with the extent of corporate governance disclosure in Japan. The findings suggest that on average 8 banks out of a sample of 46 disclose optimal corporate governance information. The regression model results reveal in general that non-executive directors, cross-ownership, capital adequacy ratio and type of auditors are associated with the extent of corporate governance disclosure. Of these four variables, non-executive directors have a more significant impact on the extent of disclosure contrary to total assets and audit firms of banks in the context of Japan. The findings of this paper are relevant for corporate regulators, professional associations and developers of corporate governance code when designing or updating corporate governance code