Auditing in Georgia: direct regulation or self-regulation

Abstract

There are different approaches to the problems in the field of regulation of audit and accounting supervision among experts from different countries.

Over the years, the accounting and auditing professions have been subject to various forms of supervision.  The actual result of the success also turned out to be unequal.

Auditing in Georgia began after the declaration of independence and the transformation of the command economy.  The establishment of a market economy required proper accounting and auditing for enterprises.  Controlling accounting, reporting and auditing activities was a new challenge for Georgia.

How did Georgia meet this challenge?  Are current methods and forms of regulation relevant to the requirements of the time and how does it help develop a free market economy?  - These questions are relevant.

The present paper discusses how this issue is regulated in the US.  Sharing the experience of a country with such a developed market economy as the US is useful and important for the reform of the accounting, reporting and auditing system in Georgia and all the countries of the former Soviet Union where the administrative-command economy system existed and where the market infrastructure is still weakly developed.