Accounting and Auditing in Developing Countries - Arab Countries
Journal of Economics and Political Sciences, Tripoli University, Vol. 16, No. 10, pp. 1-27, 2013
26 Pages Posted: 3 Apr 2013
Date Written: April 2, 2013
Purpose – This paper aims to examine the role and significance of accounting and auditing in developing countries - Arab countries in creating transparency and drive for the national economy. It provides contextual background information on the state of Accounting in Arab countries. This paper attempts to show how effective accounting and auditing help in promoting and supporting national competitiveness in today’s globalised and complex world. The paper seeks to critically assess the effectiveness and performance accounting and auditing in Arab countries. It will highlight the factors affecting the role and function of accounting and auditing.
Methodology/Approach – The paper is based on data collected from various documents including those published by the authors (such as articles at journals and books), as well as information from business laws that organized accounting in Arab countries.
Findings – we found that accounting systems and auditing procedures in most Arab countries were designed to cater for the needs of centrally planned economy and they are currently struggling to keep pace with the developed world. The accounting and auditing systems in developing and Arab countries set clear objectives mainly to provide accounting information, including: (i) financial information; (ii) tax information; and (iii) statistical information. They lack standardization and uniformity as they seem to be applied differently across sectors and industries.
Originality – This is the first study (in researcher knowledge) that describes and explains the accounting and auditing in most Arab countries. The paper contributes to the literature by providing a broader picture about the obstacles and problems that effect on developing accounting in Arab countries.
Keywords: Accounting, Auditing, Arab Countries, Libya, Accounting Education
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