Monica Ana Pop
 
Babeş-Bolyai University, Faculty of European Studies, Department of European Studies and Governance, Romania
DOI: https://doi.org/10.31410/itema.2018.587

2nd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2018 – Graz, Austria, November 8, 2018, CONFERENCE PROCEEDINGS published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-13-4

Abstract

The aim of this paper is to investigate the extent to which good governance has an impact on strength of auditing and reporting standards. Previous studies have shown there are some certain determinant factors for the strength of auditing and reporting standards such as legal framework, corporate governance, financial market and education. The goal of this cross-country investigation is to continue developing the idea of previous studies, trying to identify if there is any influence of the quality of governance on auditing and financial reporting standards. Using an approach from two perspectives such as the geographical regions and income group classification, the findings show the influence of the governance clusters on the strength of auditing and reporting standards is not quite uniform. Thus, while voice and accountability, political stability and government effectiveness are most significant for countries from Europe, Central and North America, the others governance indicators such as regulatory quality, rule of law and control of corruption are also significant for countries from South America and Asia. Countries from Africa seems to be least affected by all these six governance clusters. Speaking from the perspective of income group classification, the results show the influence of governance quality is particularly highlighted for countries included in upper middle income and high income OECD.

Key words
Auditing standards, financial reporting standards, governance, rule of law, control of corruption.
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