The Strength of Auditing and Reporting Standards in Relation to Financial Reporting Quality
The Strength of Auditing and Reporting Standards in Relation to Financial Reporting Quality

Summary/Abstract: The quality of the accounting information is determined by many factors - internal and external to the firm. In this paper we focus on the strength of auditing and reporting standards (SARS), that is considered one of the influencing factors of financial reporting quality. Recently, more and more countries around the world choose to apply International Financial Reporting Standards (IFRS). Thus, the power of these standards is essential, because only with a comprehensive set of rules, clearly regulated and understood by their users, the effectiveness of these standards can be guaranteed. Our main objective is to analyse the strength of auditing and reporting standards theoretically and to describe its determinants. This paper contributes to the literature regarding the determinants of SARS and is relevant for several categories of users of financial information.

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