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A cross-country perspective on professional oversight, education standards and countries' perceived level of corruption

Albrecht, Chad and Malagueno, Ricardo and Holland, Daniel and Sanders, Matt (2012) 'A cross-country perspective on professional oversight, education standards and countries' perceived level of corruption.' Cross Cultural Management: An International Journal, 19 (4). pp. 433-454. ISSN 1352-7606

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Purpose – The purpose of this paper is to investigate whether the existence of a professional oversight body and certain country-specific education regulations in auditing are associated with a country's perceived level of corruption. Design/methodology/approach – Drawing on data from the International Federation of Accountants (IFAC) database, the authors used the Mann-Whitney U analysis technique to test the difference between countries' perceived level of corruption based on whether they have or have not developed professional oversight bodies and licensing regulations. Findings – Results suggest that countries that have established an audit profession oversight body are, indeed, perceived to be less corrupt. Similarly, countries that require practical experience, academic study, and a licensing examination in order to practice auditing are perceived to be less corrupt. On the other hand, the analysis shows that requiring auditors to fulfil continuing education requirements is not significantly related to a perception of lower levels of corruption. Practical implications – The paper provides important insights for policy makers, business leaders, education and the audit profession as a whole. Originality/value – This paper provides some of the first empirical support for the relationship between corruption and the use of oversight bodies and licensing regulations in professional auditing at a country level.

Item Type: Article
Uncontrolled Keywords: Auditing; Auditing standards; Corruption; Financial crime; Index for Auditing Education Standards; International Federation of Accountants; Professional associations; Professional oversight body
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Jim Jamieson
Date Deposited: 17 Dec 2012 14:28
Last Modified: 18 Dec 2012 15:38

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