The importance of Auditing Essay Example | Topics and Well Written Essays - 500 words

The importance of Auditing - Essay Example The research paper is specifically meant to explore the reasons why developing countries in particular often fail to meet their expectations in terms of economic development. As such, the hypothesis for the research is: "Implementing better regulated auditing systems with severe consequences for not passing the audit will help developing countries to improve their economic development and avoid widespread corruption." Along with this hypothesis, the methods for data collection that will be mainly used include qualitative research. This will be mainly comprised of secondary data obtained from published literature such as journals as well as other official documents in the same area of study. The main advantage of using secondary research for this particular research is that the data going to be used is authentic. This data would have been validated in other previous studies. One of the reasons for the financial success of developed countries is their reliance on strict auditing practices. However, one of the reasons for the financial problems of many developing countries is lack of regulation of auditing system. Developing countries fail to apply the right plans for developing because they depend on accounting and neglect the auditing systems. By not involving auditing systems in the process, the range of corruption will increase. Unfortunately, accounting and auditing systems or procedures of developing countries are currently struggling to keep pace with those of the developed nations because they were specifically designed to meet the needs of centrally planned economy and not globalized economies (Prather-Kinsey, 2006). Therefore, the accounting systems lack uniformity as well as accounting standards because they are applied differently across industries and sectors. The auditing and accounting systems normally set clear objectives of providing accounting information related to tax, statistics, and financial