Transnationalism and the transforming roles of professional accountancy bodies

Abstract

Purpose – The accounting regulation literature has recently devoted a significant degree of attention to delineating the roles of accounting firms as key professional actors in the transnational policy arena. Such a heightened level of scholarly engagement with firms seems to have shifted the focus away from the roles of the national professional institutes. The purpose of this paper is to demonstrate the importance of not losing sight of the national professional bodies as important players on the transnational governance scene. Design/methodology/approach – The accounting regulation literature has recently devoted a significant degree of attention to delineating the roles of accounting firms as key professional actors in the transnational policy arena. Such a heightened level of scholarly engagement with firms seems to have shifted the focus away from the roles of the national professional institutes. The aim with this paper is to demonstrate the importance of not losing sight of the national professional bodies as important players on the transnational governance scene. Findings – The paper provides empirical illustrations and discussion of the transforming agendas and strategies of influence pursued by various national professional bodies as they attempt to reinvent themselves to face up to the challenges of the changing regulatory landscape. Specifically, the paper analyses a range of activities where such bodies are seen to be competing with each other as well as partaking in a variety of collaborative initiatives in their quest to gain/maintain the status of a global/regional professional thought leader. Practical implications – The paper is designed to encourage renewed academic debate on the roles and strategies of national professional institutes and highlight opportunities and venues for future research. The paper is also suggestive of the need to refine conceptual perspectives on professionalization processes operational in transnational settings. Originality/value – The accounting literature is lacking in terms of contemporary study of national professional bodies as active institutions with global ambition and strategies of influence. This paper addresses such a shortcoming by analysing the strategic intent and actions of a range of such bodies (revealing, in the process, a quite fascinating complex of activity, competition and cooperation) and calling for a renewed focus on national professional bodies as a way of enhancing contemporary understanding of the workings of the “global accounting profession”.

Globalisation, accounting and developing countries

“…This has shifted the professional identity of standard setters towards satisfying transnational regulators and world governance institutions rather than national accounting regulation (Djelic & Sahlin-Andersson, 2006, in Power, 2010. Botzem (2014) argues that the IASB is now the primary influence on global accounting although Samsonova-Taddei and Humphrey (2014) (Suddaby et al, 2007). Thus, its experts draw from the major accounting firms they police (Cobham & McNair, 2012).…”

“…Donors seeking to promote FDI and the private sector in DCs have prioritised stronger regulation by local accounting professionals, but accounting is increasingly globalised and dominated by large accounting firms (Samsonova-Taddei & Humphrey, 2014).…”

“…Their pursuit of international harmonisation of accounting knowledge carries dangers for DCs (Samsonova-Taddei & Humphrey, 2014). For example, syllabi reproduce Northern values, systems and priorities, but neglect issues pertinent to DCs .…”

“…For example, syllabi reproduce Northern values, systems and priorities, but neglect issues pertinent to DCs . Such harmonisation is also lucrative and enables Northern associations to extend their membership and credentials, frustrate development of rival indigenous associations, exert greater influence upon growing independent oversight and transnational regulation, and further the case for globally integrated accounting and auditing standards (Samsonova-Taddei & Humphrey, 2014).…”

“…in Bangladesh, Sri Lanka, India and Pakistan -whose aims vary. Some seek to establish a 'global elite'; others to grant peripheral bodies -particularly in DCs -more voice in transnational regulation; and some use generous WB funding to increase accounting capacity in DCs by establishing or strengthening local associations (Samsonova-Taddei & Humphrey, 2014). For example, the Swedish Development Agency is helping build stronger international partnerships to strengthen regional accounting associations in DCs (Fyson, 2012).…”