The Harmonising of Auditing Standards in Emerging Economies from The Stakeholders’ Perspectives

Abstract

The literature has highlighted the increased pressure on the auditing profession to achieve global harmony in auditing practice (i.e. Humphrey et al., 2009; Michas, 2011; Holm & Zaman, 2012), thereby requiring auditing regulators and standards-setters to revise and improve auditing standards in their own local contexts. This study seeks to determine the contemporary conduct and determinants of local auditing practice and offers an analysis of how Libyan audit stakeholders perceive the prospect of adopting harmonised auditing standards or developing such a set of standards for local use. A survey was completed by 196 respondents, representing five stakeholder groups in the Libyan auditing arena. Statistical analysis, via the SPSS, was performed. The outcomes are deemed to be generalizable given the size of the sample. This study has found that the Libyan Accounting and Auditing practice have varied according to variable concerning the personnel involved. And that the result is an overall poor quality of audit work in the country. This needs to be raised, and the harmonisation of audit standards is one way to achieve not only this but a greater degree of credibility in the country’s financial reporting. The study contributes to the body of literature in respect of the Libyan accountancy environment by specifically exploring the perception of stakeholders towards the adoption of harmonised audit standards. By implication, it makes a contribution to the wider body of knowledge about auditing in the Arab countries, where similar cultural conventions and attitudes exist.