The objective of this study is to investigate suitability of the IFAC statements of membership ob... more The objective of this study is to investigate suitability of the IFAC statements of membership obligations (SMOs) in the context of a less developed economy. Past literature has identified the presence of a significant gap between accountants working in developed countries and LDCs in terms of skills and competence. Also, due to various socioeconomic conditions, the perceptions of ethical conduct vary widely between developed and developing countries. However, despite this, international accounting bodies such as the IFAC have time and again attempted to promote a universal set of standards to ensure audit quality. Using the case of Bangladesh, this paper investigates the adoption and implementation process of IFAC SMOs in the contxt of an LDC. Interviews with policy makers, practicing auditors, senior accounting academics, and leaders of the accountancy profession, as well as a questionnaire survey with final year undergraduate students of accounting reveal the absence of the essential preconditions of ethical practice in Bangladesh, making the IFAC SMOs largely ceremonial. Overall, our findings suggest that the adoption of SMOs in Bangladesh may have been prompted by institutional reasons rather than reasons of efficiency, and a replication of the Bangladesh case in other LDCs will make IFAC's efforts to improve audit quality through a compliance programme largely unsuccessful.
The objective of this study is to investigate suitability of the IFAC statements of membership ob... more The objective of this study is to investigate suitability of the IFAC statements of membership obligations (SMOs) in the context of a less developed economy. Past literature has identified the presence of a significant gap between accountants working in developed countries and LDCs in terms of skills and competence. Also, due to various socioeconomic conditions, the perceptions of ethical conduct vary widely between developed and developing countries. However, despite this, international accounting bodies such as the IFAC have time and again attempted to promote a universal set of standards to ensure audit quality. Using the case of Bangladesh, this paper investigates the adoption and implementation process of IFAC SMOs in the contxt of an LDC. Interviews with policy makers, practicing auditors, senior accounting academics, and leaders of the accountancy profession, as well as a questionnaire survey with final year undergraduate students of accounting reveal the absence of the essential preconditions of ethical practice in Bangladesh, making the IFAC SMOs largely ceremonial. Overall, our findings suggest that the adoption of SMOs in Bangladesh may have been prompted by institutional reasons rather than reasons of efficiency, and a replication of the Bangladesh case in other LDCs will make IFAC's efforts to improve audit quality through a compliance programme largely unsuccessful.
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