Global Auditing Challenges and Issues: A Conceptual and Theoretical Review

Benedict SOJE; Murna SAMALE N.G.; Gimbiya IBRAHIM

doi:10.56201/jafm.vol.11.no11.2025.pg87.95

📄 Download Paper

Global Auditing Challenges and Issues: A Conceptual and Theoretical Review

Benedict SOJE, Murna SAMALE N.G., Gimbiya IBRAHIM

Abstract

This research paper explored the challenges and issues in global auditing through the lens of agency theory and institutional theory. Drawing from recent literature and theoretical contributions, the study identified key conceptual themes such as technological disruptions, ethical dilemmas, audit quality and stakeholders’ expectations. It did not involve empirical data collection or analysis but provided a robust theorical foundation for understanding contemporary audit challenges across global context. The conceptual and literature-based approach contributed to academic and policy discussion on improving audit practice in complex and diverse environment. The study hinged on how dynamic regulatory landscapes, technological innovations, cultural diversity, and ethical dilemmas shape audit practices worldwide. Through a comprehensive review of scholarly literature and theoretical perspectives, the study critically analyzed how global auditing is evolving in response to increased complexity, stakeholder demands, and cross-border operations. The paper examined the implications of auditing challenges for audit quality, accountability, transparency, and investor confidence. By integrating stakeholder theory, institutional theory, and agency theory, the study offers a multi-dimensional understanding of how global auditing systems can adapt to persistent and emerging risks. The findings emphasized that addressing global auditing issues requires coordinated efforts from regulators, audit firms, and organizations to ensure that audit practices remain robust, ethical, and fit for purpose in a rapidly transforming global economy.

Keywords

AuditingGlobal AuditingAudit quality

References

Barney, J. B., & Harrison, J. S. (2020). Stakeholder theory at the crossroads: a resource-based view. Academy of Management Annals, 14(2), 217-254. https://doi.org/10.5465/annals. DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2–3), 275–326. https://doi.org/10.1016/j.jacceco.2014.09.002. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147– https://doi.org/10.2307/2095101 Francis, J. R. (2011). A framework for understanding and researching audit quality. Auditing: A Journal of Practice & Theory, 30(2), 125–152. https://doi.org/10.2308/ajpt-50006 Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman. Freeman, R. E., Phillips, R. A., & Sisodia, R. (2020). Tensions in stakeholder theory. Business & Society, 59(2), 213–231. https://doi.org/10.1177/0007650318773750 Humphrey, C., Moizer, P., & Turley, S. (1993). The audit expectations gap in Britain: An empirical investigation. Accounting and Business Research, 23(91A), 395–411. https://doi.org/10.1080/00014788.1993.9729877. Jarzabkowski, P., Bednarek, R., Chalkias, K., & Cacciatori, E. (2019). Strategic change: Sensemaking, stakeholder framing, and the formation of organizational identity. Academy of Management Journal, 62(3), 723–752. https://doi.org/10.5465/amj.2016.1049 Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X. Knechel, W. R., Krishnan, G. V., Pevzner, M., Shefchik, L. B., & Velury, U. K. (2020). Audit quality: Insights from the academic literature. Auditing: A Journal of Practice & Theory, 39(1), 1–38. https://doi.org/10.2308/ajpt-15-009. Phillips, R., Freeman, R. E., & Wicks, A. C. (2023). Fairness in stakeholder theory: Stakeholder justice and proportionality. Journal of Business Ethics, 189(1), 29–45. https://doi.org/10.1007/s10551-020-04557-3. Salawu, R. O., & Agboola, A. A. (2020). Audit quality and financial performance of listed firms in Nigeria. Journal of Accounting and Taxation, 12(3), 91–99. Sani, A., & Umar, M. B. (2021). Auditor independence and audit quality in the Nigerian public sector: Evidence from MDAs. International Journal of Accounting and Financial Reporting, 11(1), 150–166. https://doi.org/10.5296/ijafr.v11i1.18393 Sikka, P. (2009). Financial crisis and the silence of the auditors. Accounting, Organizations and Society, 34(6–7), 868–873. https://doi.org/10.1016/j.aos.2009.01.004 Sikka, P. (2020). Financial scandals, accounting regulation and the audit profession. Accounting Forum, 44(1), 1–12. https://doi.org/10.1080/01559982.2020.1716572 Tantalo, C., & Priem, R. L. (2022). Value creation through stakeholder synergy: Integrating stakeholder theory and the resource-based view. Journal of Management, 48(1), 58–87. https://doi.org/10.1177/0149206321995786 Tsamenyi, M., Enninful-Adu, E., & Onumah, J. (2008). Disclosure and corporate governance in developing countries: Evidence from Ghana. Managerial Auditing Journal, 23(3), 287–294. https://doi.org/10.1108/02686900810857771 Yoon, K., Hoogduin, L., & Zhang, L. (2020). Big data as complementary audit evidence. Accounting Horizons, 34(4), 75–99. https://doi.org/10.2308/acch-52673

Global Auditing Challenges and Issues: A Conceptual and Theoretical Review

Abstract

Keywords

References

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT