PURPOSE OF THE STUDY
This paper discusses the main changes in national and international auditing rules and regulations that have affected European countries. The theoretical part of this paper discusses cultural frameworks, corporate governance and auditing as a part of its control mechanisms. These dynamics will be reflected to changes in audit reports in four carefully selected countries, Finland, France, Germany and United Kingdom. The empirical part of the paper measures the level of harmonization within and between these countries.
DATA
The study will be based on domestic and foreign literature on legislation and accounting rules and regulations. Audit reports will be collected and analyzed from four European countries, Finland, France, Germany and United Kingdom during ten years, 2000-2009.
RESULTS
Strong national dynamics affect the diversity of audit reports; however, the study shows a trend towards harmonization during the ten observed years. The audit reports show increasing comparability nationally and internationally. The mandatory applications of the IFRS standards and the Eight Directive have had a notable effect in audit reporting
