Indonesia’s Participation in ASEAN Audit Regulators Group (AARG): Efficiency-driven or Institutional Pressure?

Abstract

This paper takes institutional theory perspective to discuss the efforts being undertaken by regulators and accounting profession in Indonesia to strengthen its audit quality (AQ). The question being asked is whether Indonesia's participation in ASEAN Audit Regulators Group (AARG), whose aim is to strengthen AQ in ASEAN country, is purely part of the country's on-going efforts on AQ or is it motivated by mimetic pressure to be similar to its neighbours. Using data obtained from various public sources, the paper shows that in comparison with its neighbouring countries Indonesia is behind in terms of few aspects concerning AQ including the number of accountants in the country. However, evidence also shows that the country was putting in various initiatives in relation to its AQ even prior to its joining the AARG in 2014. Although the number of accountants was small relative to its population, the country is in fact seeing significant increase in the number in the last three years prior to its joining the AARG. Indonesia's participation in AARG suggests that the country aims to be at par with its neighbours in terms of AQ. Following its participation with AARG, the country has issued a draft of Audit Quality Indicators (AQIs) in 2016 as well as Code of Ethics in 2017 for accountants. Hence, although participation in AARG could initially be motivated by mimetic pressure, the evidence shows that the country is in positive direction in its quest to improve AQ.

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Attitude of Special Education Teachers in Teaching Special Education Integration Program towards Learning Disabilities Students Dyslexia Academic Performances in District Hilir Perak, Perak

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