The objective of the thesis is to study the relationship between audit methodology, audit practice and audit standards. The ambiguous nature of audit assurance and the related problematic nature of the audit evidence process are recognised in the literature. The development of proprietary audit methodologies by some of the large accounting firms represents a response to this problem. These methodologies potentially influence both audit practice and audit standards. The thesis draws on institutional theory and an analysis of the multiple roles of audit methodology identified in the literature, to build an analytical framework which facilitates an understanding of audit methodology in its social and institutional context. The introduction by some of the large accounting firms of Business Risk Audit (BRA) approaches has been documented as a major development in audit methodology in the mid1990s. This innovation represented an ambitious program of change in audit techniques and was actively promoted among clients, regulators and academics. As a significant event in the audit field, it provides an excellent opportunity to study the relationship between audit methodology, audit practice and audit standards. Two related empirical studies were undertaken as part of this thesis. First, a longitudinal case study of the implementation of the BRA in practice provided theoretical insights into the relationship between methodology and practice. Second, an investigation into the conditions, events and processes that influenced the development of new standards iil response to BRA enhanced understanding of the relationship between methodology and standards. The two studies provide an in-depth account of an important institutional event in the field of auditing. Facilitated by the analytical framework, the study serves to enhance understanding of the relationship between audit methodology, practice and standards in two key ways. First, the central development of audit methodology within the large firms is shown to be an important consideration in appreciating both the manner in which innovation in methodology emerges and potential problems arising from processes of implementation. This finding has theoretical relevance, suggesting that innovations in audit methodology and their impact on audit practice can be better understood by analysing them in relation to the different interests and sources of legitimacy of those directly involved in the development and promotion of audit firms' methodologies and the audit practitioners required to implement them. Secondly, the study highlights the potential for tension between the various roles served by audit methodologies and audit standards, whether in terms of supporting the production of assurance, profits and different sources of legitimacy for audit firms, standard setters, regulators and the profession as a whole. Theoretically speaking, the success or failure in gaining institutional acceptance for innovations in audit methodology is shown to be dependent on their impact on, and ability to satisfy, the respective (and potentially competing) business demands and professiQpal obligations assumed by/placed on actors within the organisational field of auditing.

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Offshore Financial Centres (OFCs) have flourished by providing a range of attractive opportunities to investors and contributing to the reduction of economic dependency in their host countries. They have developed side by side with contemporary globalization. Technological advances and the de-regulation of cross-border transactions have made OFCs accessible to a worldwide base of clients and assisted in fostering both positive and negative reputations for these jurisdictions. In recent years several multilateral organisations have issued recommendations aimed at maintaining international financial stability and improving global governance. OFCs have come under pressure to improve their financial regulation and supervision in line with these standards. The Organisation for Economic Cooperation and Development (OECD)'s harmful tax competition initiative, aimed at restraining 'harmful' tax practices that erode the tax revenue bases ofOECD countries, is representative of such measures. By investigating the offshore phenomenon within· the small island state environment in the context of global governance this research argues that there is diversity in the combinations of characteristics and products that attach uniqueness to individual OFCs. Such uniqueness ought not to be underestimated by internal or external policymakers as it helps determine how OFCs operate and how they react to the various local and global factors that impact them. The research further examines the responses of Caribbean OFCs to recent multilateral initiatives to present an alternative perspective to the imposition of standards by international organisations and underscore the importance of the offshore sector to small island economies that try to control their own destiny. While significant initiatives may be set at a global level there are implications for professionals such as accountants faced with regulatory issues at both local and global levels. This research considers the significance of a particular location for the obligations of profession accountants with explicit public interest commitments working in an arena very much concerned with matters of self- and private- interest.

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This study takes a step forward to explore the dynamic relationship between cultural values and stock market development in the United Kingdom, during the period 19912004. Cultural values are represented by the cultural model of Hofstede (1980) which consists of five dimensions, which are: power distance, uncertainty avoidance, individualism, masculinity and time horizon. Stock market development is represented by four indicators, which are: stock market activity, size, liquidity and concentration. Empirical results, using structural equation modelling (SEM), show that some cultural values have significant relationships with stock market development indicators. Power distance has a significant negative relationship with stock market size, while individuality has a significant positive relationship with stock market activity at the 0.90 confidence level. Furthermore, since good corporate governance systems are considered as an important component Of/stock market development, this study has been extended to explore the impact of cultural values on corporate governance systems across twenty four countries in Western Europe, North America and Asia Pacific. Corporate governance systems are represented by eight aspects, which are: board size, separation of chair and CEO, independence per board, independent audit committee, remuneration disclosure, women on board, code of ethics and ethics systems. The regression analysis results show that cultural values have a significant impact on several corporate governance systems across countries. Individuality has significant positive relationships with three corporate governance systems, which are: independence per board, audit committee, and ethics systems. Power distance has a significant positive relationship with separation of chair and CEO. The interaction term, uncertainty avoidance/masculinity, - has significant negative relationships with three corporate governance systems, which are: independence per board, remuneration disclosure, and code of ethics. Moreover, the interaction term power distance/masculinity has a significant negative impact on women on board. This study concludes that several cultural values play an important role in the formation and behaviour of stock market development over time, and on corporate governance systems across countries. These results have important consequences at both firm and country levels and in terms of stock market integration across the globe.