Development of Accounting and Auditing in Egypt:Origin, Growth, Practice and Influential Factors

Ahmed F. Elbayoumi, Emad A. Awadallah and Mohamed A. K. Basuony ()
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Mohamed A. K. Basuony: Cairo University, Egypt

Journal of Developing Areas, 2019, vol. 53, issue 2, 205-220

Abstract: The accounting and auditing profession is affected by the environment in which it operates. That environment includes a variety of accounting and non–accounting factors. The influential factors may provide a better understanding of present accounting practices, and its future improvement tendencies and, consequently, may lead to the growth and development of the accounting and auditing profession. The main objective of this paper is to identify and investigate the environmental factors that affect the origin, growth, development, and practice of the accounting and auditing profession in Egypt, as an emerging country. This paper explores a comprehensive set of these influential factors such as existing laws and regulations, religious and cultural values, economic and political conditions, financial markets, and privatization programs. The paper also analyzes these factors to perceive their impact on the accounting and auditing profession in Egypt. These factors do vary from one country to another. Notably, there are several reasons for choosing Egypt to investigate the relation between the accounting and auditing profession and its environment. One of these reasons is that Egypt is a country with an emerging economy that has numerous foreign investment prospects. Moreover, the business environment in Egypt encountered a radical change throughout recent years. The Egyptian setting has been dynamic and developing through various economic, financial, legal, cultural and political frameworks that, apparently, influenced the accounting and auditing profession. Therefore, this paper aims to provide a better understanding of the accounting and auditing profession and its environment in Egypt and other similar countries experiencing economic and political reform with promising investment opportunities. This study concludes that political, economic, institutional, legal and cultural factors contribute to the development of the accounting and auditing profession in Egypt. Moreover, privatization led to reforming Egypt's financial reporting regulations and setting the corporate governance policy framework. The conclusions of this study could be of interest to other countries, particularly developing countries that desire to improve the quality of their accounting and auditing profession.

Keywords: Accounting Regulations; Influential factors; International Accounting Standards; Auditing practices; Egypt (search for similar items in EconPapers)
JEL-codes: M41 M42 (search for similar items in EconPapers)
Date: 2019
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