Abstract
This paper investigates the impact of four key transnational factors (i.e., cultural, educational, legal and political factors) on the diffusion and early adoption of International Standards on Auditing (ISAs). Using data for 162 countries over 1995–2014 (i.e., 3240 observations) and drawing on distinctive insights from diffusion theory, we found that common law countries tend to adopt ISAs faster than civil law countries. Our findings also show that vigorous legal enforcement and shareholder protection regimes promote the early adoption of ISAs, whereas robust judicial efficiency systems constrain the early adoption of ISAs. In addition, our results show that higher literacy rates and educational attainment simulate the earlier diffusion of ISAs. We also find that higher levels of individualism and uncertainty avoidance, but low levels of power distance cultural values, boost the early adoption of ISAs. Finally, our results report that countries with strong political stability and control of corruption tend to adopt ISAs faster than those with solid government effectiveness.
| Original language | English |
|---|---|
| Pages (from-to) | 212-239 |
| Number of pages | 28 |
| Journal | International Journal of Auditing |
| Volume | 26 |
| Issue number | 2 |
| Early online date | 17 Jan 2022 |
| DOIs | |
| Publication status | Published - Apr 2022 |
Funder
This is the peer reviewed version of the following article: Elmghaamez, I. K., & Elmagrhi, M. H. (2022). Diffusion theory, transnational antecedents and International Standards on Auditing adoption around the world. International Journal of Auditing, 26(2), 212–239. https://doi.org/10.1111/ijau.12273, which has been published in final form at https://doi.org/10.1111/ijau.12273. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibitedKeywords
- Auditing Standards
- Regulation
- Auditing History
- Diffusion Theory
- Political Factors
- Educational Factors
- Cultural Dimensions
- Legal Factors
