The Role and Challenges of International Standards on Auditing in Diverse Economic Contexts

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The adoption and implementation of International Standards on Auditing (ISAs) are crucial for ensuring consistent audit quality and financial reporting integrity globally. These standards, established by the International Auditing and Assurance Standards Board (IAASB), aim to provide a universal framework for auditing practices. Developed economies, such as the United States and the United Kingdom, have leveraged strong regulatory frameworks and advanced technologies to achieve high compliance with ISAs, thereby enhancing investor confidence and market stability. However, the disparity in ISA adoption between developed and emerging markets raises critical concerns about global audit reliability and financial transparency. Emerging markets, including regions in Sub-Saharan Africa, face unique challenges that hinder ISA implementation. Factors such as weak regulatory oversight, limited access to training, and cultural barriers contribute to inconsistent audit practices. In Nigeria and Cameroon for instance, inadequate enforcement mechanisms and resource constraints have led to irregularities in financial reporting, which significantly impact auditors’ ability to adhere to ISA guidelines. These systemic issues not only undermine audit quality but also erode stakeholder trust in financial systems, creating barriers to economic development and foreign investment. This study explores the role and challenges of ISAs across diverse economic contexts, focusing on the factors affecting their implementation and proposing strategies for improvement. Using a qualitative methodology, including case studies such as CBC Health Services in Cameroon, the research underscores the need for tailored approaches to bridge the gap in ISA adoption. Key recommendations include enhancing auditor training, integrating advanced auditing technologies, and strengthening regulatory frameworks to ensure uniform application of ISAs globally. Addressing these challenges is essential to achieving the overarching goal of financial stability and audit reliability worldwide.