Protectionism in public accounting and auditing services

Nature

In both developing and developed countries, regulations curtail the right of foreign professional accountants to practice locally, or even completely prohibit them from doing so. Audits may have to be supervised by locally registered, qualified accountants. Foreigners may be required to possess the requisite professional degree from a local university, or pass a special examination, as well as be a member of a local professional body.

Claim

Protectionism in public accounting and auditing services is a critical problem that undermines transparency, competition, and global trust. By shielding domestic firms from international competition, protectionist policies stifle innovation, lower service quality, and inflate costs. This not only harms clients and investors but also erodes the credibility of financial reporting worldwide. Urgent action is needed to dismantle these barriers and ensure the integrity and efficiency of public accounting and auditing services.