Do Financial Reporting and Audit Quality Support Economic Growth and Development? A Post-Modernist Re-interpretation

Abstract

It is generally accepted, nowadays, that reliable financial information is a prerequisite of a robust market economy and efficient public sector. This position has been strengthened by the recent financial crisis, where financial reporting has not been done up to the expected standard. In this chapter we consider the problem of `accounting for growth?. Accounting for growth is a term that has been launched in accounting theory, and generally is rather quite opposite to the notion of growth accounting championed by neo-classical economists. `Accounting for growth? looks at the institutional framework in a particular defined jurisdiction, that regulates accounting, corporate reporting and ? auditing.