Exploring Changing Requirements of Financial Statement Audit Reports via a Morphogenetic Approach

Ying Deng; Graham Bowrey; Greg Jones

doi:10.14453/aabfj.v15i2.4

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Exploring Changing Requirements of Financial Statement Audit Reports via a Morphogenetic Approach

Journal article

Peer reviewed

Exploring Changing Requirements of Financial Statement Audit Reports via a Morphogenetic Approach

Ying Deng, Graham Bowrey and Greg Jones

Australasian Accounting, Business & Finance Journal, Vol.15(2), pp.38-55

2021

DOI: https://doi.org/10.14453/aabfj.v15i2.4

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Abstract

Morphogenetic approach

auditing

accountability

transparency

social agents

There has been an ongoing concern with the quality of financial audit reports issued by registered public accounting firms in relation to financial accountability and transparency of the financial statements. In July 2009 the Public Accounting Oversight Board (PCAOB) released a concept paper outlining changes to the requirements of financial audit activities such as the inclusion of the engagement partner’s signature on the financial audit reports. The aim of these new requirements was to improve the accountability of engagement partners as well as enhance the perception of transparency of the audit reports. However, the contribution and effectiveness of these requirements to improve accountability and transparency of audit reports for various stakeholders relying on the audited financial information is questionable. This study explores the impact and effectiveness of changes to auditing regulation and processes through the application of Archer’s (1995) morphogenetic approach which is based on social conditioning, social interaction, and social elaboration where the structural influences provides the environment for agents to differentiate themselves. In addition, this study demonstrates how proposed regulation changes mould the qualities of audit regulation, the profession and the auditor whose perspectives deserved to be noticed from the dominant constituencies structured by the propositions of a morphogenetic analysis.

Details

Title: Exploring Changing Requirements of Financial Statement Audit Reports via a Morphogenetic Approach
Authors: Ying Deng (Author) - Zhejiang University of Finance and Economics
Graham Bowrey (Author) - University of the Sunshine Coast, Queensland, School of Business and Creative Industries
Greg Jones (Author) - University of Southern Queensland
Publication details: Australasian Accounting, Business & Finance Journal, Vol.15(2), pp.38-55
Publisher: University of Wollongong
Date published: 2021
DOI: 10.14453/aabfj.v15i2.4
ISSN: 1834-2019
Organisation Unit: School of Business and Creative Industries
Language: English
Record Identifier: 99518308302621
Output Type: Journal article

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Collaboration types: Domestic collaboration; International collaboration
Web Of Science research areas: Business, Finance