The Role of Accounting Reform in Deterring Corruption Practices in the Public Sector: A Case Study in Kurdistan Region

Ghaffoori, Arsalan

doi:10.4172/2167-0234.1000229

Cited by 2 publications

(2 citation statements)

References 37 publications

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“…Fourth, high-quality accounting practices in a country can be measured by the adoption of public sector accounting standards and the strength of auditing standards and financial reports as in previous literature on accounting practices (eg, Kassem and Higson [66]; Changwony and Paterson [24], Paterson et al [26], Zelizer [67]). Institutional pressure from a professional and well-organized government will demand compliance or the application of good financial reporting practices [35,68], all of which are likely to influence the adoption of modern and innovative accounting practices with the aim of providing disclosed information in full [34,64,69]. Likewise, a strong government and independent oversight bodies, such as auditing agencies, ombudsman offices, and anti-corruption institutions, will likely put a lot of pressure on the government and demand accountability information [9,65,70,71].…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…High-quality accounting practices can increase the credibility of financial information through the presentation of financial reports on a regular and timely basis so as to increase transparency and accountability in the public sector, and have an impact on reducing corruption [32][33][34]. At present several studies focus on the relationship between accounting practices and corruption [1,2,24,35], with overall results showing that reducing corruption can be done by the state countries with high quality accounting practices compared to countries with low quality accounting practices.…”

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confidence: 99%

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Corruption, Accounting Practice and Economic Growth: Evidence of ASEAN Countries

Akbar¹,

Rozak²,

Prawiranegara³

et al. 2020

Proceedings of the 3rd Asia Pacific Management Research Conference (APMRC 2019)

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This study analyzes the impact of corruption on economic growth by including the role of accounting practices. Corruption has a negative influence on economic growth in countries with poor quality accounting practices than in countries with high-quality accounting practices. The new contribution of this study concerns the relationship between the literature between corruption and separate accounting practices regarding economic growth. To our knowledge, this is a study of the first ASEAN countries documenting the impact of corruption on economic growth that depends on the quality of accounting practices in a country. We use cross-section data for 2018 for 11 ASEAN countries. Data on economic growth is taken from the World Bank, while corruption is represented by the Transparency International (TI) Corruption Perception Index (CPI). Meanwhile accounting practices are represented by the strength of auditing standards and financial reporting from the World Economic Forum (WEF), as well as the adoption of the International Public Sector Accounting Standards (IPSAS) in a country from the International Federation of Accountants (IFAC). We apply the Moderated Regression Analysis (MRA) approach for estimating results. The results of studies show that corruption inhibits economic growth. In addition, the strength of auditing standards and financial reporting weakens the relationship between corruption and economic growth. Other results show that the adoption of IPSAS does not weaken the relationship of corruption with economic growth in ASEAN countries. The findings of this study prove that high-quality accounting practices in a country can weaken corruption which can hamper economic growth. Conversely, corruption will easily grow in countries with weak quality accounting practices whose impact will hamper economic growth.

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