|Audit regulatory reform with a refined stakeholder model to enhance corporate governance: Hong Kong evidence|
|Source Publication||Corporate Governance: The international journal of business in society|
Purpose – Recent corporate scandals have resulted in a greater focus on business ethics and governance. The purpose of this study is to examine whether the existing audit regulatory framework adequately serves the legitimate interests of stakeholders.
Design/methodology/approach – This study is the first to collect survey data on audit regulatory issues in the post-Lehman Brothers environment. In total, 190 responses to a mail survey were collected from Big Four auditors and from 166 CEOs. Stakeholder theory is used to analyse these responses.
Findings – The results indicate that Big Four auditors and CEOs perceive the disclosure of post-audit report event evidence to be important in discharging their ethical obligations. Both groups agreed that issuing timely audit reports is important, and that “introducing quarterly audit reporting” is a necessary step to enhance corporate governance. A risk-based auditing approach necessitates the introduction of quarterly reporting. The findings support the notion underlying business risk auditing (BRA) models developed in public practice and the literature. CEOs are acutely aware of their corporate responsibilities to the company's stakeholders, and demonstrate that they understand the core insights of stakeholder theory by applying this theory in the corporations they manage. These results support the assertion that stakeholder theory has managerial implications and intrinsic value. CEOs comply with their audit disclosure obligations in several ways. Based on the results, a refined stakeholder model is proposed and immediate regulatory reform is recommended.
Originality/value – This study extends the literature on the theoretical development of the stakeholder model, which will facilitate standard setters and regulators in the Asia-Pacific region and their counterparts in other regions to devise standard guidelines and improve corporate governance.
|Keyword||Auditing Corporate Governance Financial Reporting Pacific Region Regulation Stakeholder Analysis|
|URL||View the original|
|Document Type||Journal article|
|Collection||DEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT|
|Affiliation||Assistant Professor of Accounting at the Department of Accounting, University of Macau, Macao|
|First Author Affilication||University of Macau|
|Corresponding Author Affilication||University of Macau|
|Law,Philip. Audit regulatory reform with a refined stakeholder model to enhance corporate governance: Hong Kong evidence[J]. Corporate Governance: The international journal of business in society,2011,11(2):123-135.|
|APA||Law,Philip.(2011).Audit regulatory reform with a refined stakeholder model to enhance corporate governance: Hong Kong evidence.Corporate Governance: The international journal of business in society,11(2),123-135.|
|MLA||Law,Philip."Audit regulatory reform with a refined stakeholder model to enhance corporate governance: Hong Kong evidence".Corporate Governance: The international journal of business in society 11.2(2011):123-135.|
|Files in This Item:||There are no files associated with this item.|
|Recommend this item|
|Export to Endnote|
|Similar articles in Google Scholar|
|Similar articles in Baidu academic|
|Similar articles in Bing Scholar|
Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.