A Cybernetic View of Auditing Practices in Egypt

摘要

Recent years, however, have witnessed the growth of a global economy, which has been made possible ty the advance in communications technology. Financial statements, usually prepared in accordance with national accounting standards must be interpreted, if they are to be used as the basis for comparisons. To harmonise accounting standards, a framework was developed by the International Accounting Standards committee. Companies operating in Egypt can be classified as public, private or joint and each has its own accounting standards. Recently, a law was enacted enforcing implementation of the framework of International Accounting Standards in the A.R.E. The difficulty is then how to set up an Auditing framework in Egypt, which will manage this change and maintain the quality of the financial statements. This paper addresses this problem using the methodology embodied in the Viable System Method postulated by Stafford Beer. A Viable System Model is designed and examined in the light of the particular problems existing in Egypt. Recommendations are then formulated.