CHALLENGES AND OPPORTUNITIES IN IMPLEMENTING INTERNATIONAL STANDARDS ON AUDITING IN DEVELOPING ECONOMIES

Nodirbek Uralov; Xasan Umarov

Authors

Uralov Nodirbek Salimjon ugli
Umarov Xasan Sunnatullayevich

Keywords:

Audit quality, developing economies, International Standards on Auditing (ISAs), regulatory frameworks, capacity building, economic growth, investor confidence.

Abstract

This research paper delves into the challenges and opportunities associated with the implementation of International Standards on Auditing (ISAs) in developing economies. The adoption and adherence to ISAs are critical for ensuring the quality and consistency of auditing practices on a global scale. However, implementing these standards in developing economies poses unique challenges stemming from their distinct economic, regulatory, and institutional contexts. The paper systematically examines the hurdles encountered, such as resource constraints, lack of expertise, and varying legal and cultural frameworks, and proposes strategies to mitigate these challenges. It highlights the significance of capacity building, education, and collaboration between regulatory bodies, audit firms, and academic institutions to overcome the barriers to ISA adoption. Moreover, it emphasizes the transformative potential of embracing ISAs, including enhancing investor confidence, attracting foreign investments, and fostering economic growth. The research underscores the need for a balanced approach that considers the specific circumstances of each developing economy while promoting the global harmonization of auditing practices. Ultimately, the study aims to provide valuable insights and recommendations to stakeholders involved in the auditing profession in developing economies.

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