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

Chad Albrecht (Department of Management, Utah State University, Logan, Utah, USA)
Ricardo Malagueno (Essex Business School, University of Essex, Colchester, UK)
Daniel Holland (Huntsman School of Business, Utah State University, Logan, Utah, USA)
Matt Sanders (Department of Communications, Utah State University, Logan, Utah, USA)

Cross Cultural Management: An International Journal

ISSN: 1352-7606

Publication date: 19 October 2012

Abstract

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.

Keywords

Citation

Albrecht, C., Malagueno, R., Holland, D. and Sanders, M. (2012), "A cross‐country perspective on professional oversight, education standards and countries' perceived level of corruption", Cross Cultural Management: An International Journal, Vol. 19 No. 4, pp. 433-454. https://doi.org/10.1108/13527601211269978

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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