Title: Accounting regulation changes: differing attitudes of directors and auditors

Authors: Conor O'Leary; Pran Boolaky; Deborah Delaney

Addresses: Department of Accounting, Finance and Economics, Griffith Business School, Nathan Campus, Griffith University, 170 Kessels Road, Nathan, Qld. 4111, Brisbane, Australia ' Department of Accounting, Finance and Economics, Griffith Business School, Nathan Campus, Griffith University, 170 Kessels Road, Nathan, Qld. 4111, Brisbane, Australia ' Department of Accounting, Finance and Economics, Griffith Business School, Gold Coast Campus, Griffith University, Parklands Drive, Southport, Qld. 4222, Brisbane, Australia

Abstract: After the global financial crisis many jurisdictions adjusted or proposed to adjust their accounting regulations, to improve financial reporting frameworks. This study examines and then compares the attitudes of Australian directors and external auditors to proposed legislative changes impacting upon annual reporting requirements. Directors appear opposed to additional legislation and indicate they would be less comfortable in their current roles and may not seek additional board roles. Auditors appear in favour of proposals which increase the responsibilities of preparers and would be more comfortable in their current roles if implemented. However, they appear opposed to additional responsibilities for reviewers of those reports. Directors and auditors were unequivocal in their opposition to any proposals which could impact on audit appointment. This has audit independence implications. The significance of the study is that legislators should consider carefully the impact of proposed accounting regulation changes as the need to balance investors' rights and protections, with directors' and auditors' ability to effectively perform their duties, continues to be a complex balancing act.

Keywords: accounting regulation; directors; auditors; audit independence; corporate governance; corporate legislation; auditing; director attitudes; auditor attitudes; Australia; legislative changes; annual reports; financial reporting.

DOI: 10.1504/IJAAPE.2013.057523

International Journal of Accounting, Auditing and Performance Evaluation, 2013 Vol.9 No.4, pp.365 - 387

Received: 06 Jun 2012
Accepted: 25 Jan 2013
Published online: 30 Jan 2014 *

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