The International Auditing and Assurance Standards Board: Insights for developing auditing standards fit for purpose

Introduction

How auditing functions in contemporary capital markets has been examined extensively with two broad areas of research emerging. The first typically relies on economic and finance theory to explore the link between auditing and agency problems (Watts and Zimmerman, 1983) and to further scientific efforts to evaluate the determinants and consequences of audit quality (Palmrose, 1988; Palmrose, 1997; Knechel et al., 2013; Francis, 2022). This line of research is complemented by efforts to, for example, test the value-relevance of expanded audit reporting requirements (e.g. Lennox et al., 2023); gauge the impact of regulatory interventions on audit quality surrogates (e.g. DeFond and Lennox, 2011) and explore the methodological implications of using market measures in auditing research (e.g. Kacer et al., 2023). A second collection of work deals with auditing as a social construction. It focuses on the relevance of heuristics, ritual and gutfeel for the advancement of assurance practice and the institutionalisation of modern auditing services (Humphrey and Moizer, 1990; Pentland, 1993; Power, 2003). Often relying on case studies, ethnographies and detailed interviews, the aim is to shed light on what Power (1994) refers to as the “black box” of attest functions to highlight limitations, reveal contradictions and promote positive change.

The prior research dealing with auditing as part of the capital market machinery or as a social construction provide the basis for a special issue of Meditari Accountancy Research focused on informing the work of the International Auditing and Assurance Standard Board (IAASB). With the empirical and theoretical groundwork laid by earlier scholars, researchers are well placed to capitalise on a voluminous body of positivist, interpretive and critical literature to reflect on the challenges faced by practitioners, the context in which auditees operate and the needs of different stakeholders. The goal is not only to develop theory or provide further empirical evidence on how auditing currently functions but also to guide the standard-setter in achieving its public interest objectives. 

The IAASB’s standards are developed for a range of stakeholders. These include, for example, users and preparers of financial statements, governing bodies, regulators and practitioners. To serve the public interest, the IAASB must take cognisance of competing information needs among stakeholders and the importance of developing assurance standards which: 

• promote consistent behaviour and practices among assurance providers in the jurisdictions where the IAASB’s standards are used;
• identify the most relevant business issues and drive effective measures for responding to related risks;
• reinforce the professional judgement, scepticism and other behaviours necessary for maintaining or enhancing public confidence in assurance and
• support effective reporting by facilitating the decisions made by governing bodies, financial capital providers and other stakeholders.

Key dates

• Closing date for submissions: 31 October 2024
• Expected publication date of special issue: early 2026

All submissions should be made using the journal’s online system, choosing the special issue during submission.

Submissions information

Submissions are made using ScholarOne Manuscripts. Author guidelines must be strictly followed. 

Submit via ScholarOne

Author Guidelines

Authors should select (from the drop-down menu) the special issue title at the appropriate step in the submission process, i.e. in response to “Please select the issue you are submitting to”.  

Submitted articles must not have been previously published, nor should they be under consideration for publication anywhere else, while under review for this journal.