In summary, institutional theory posits that organisations adopt those practices
that are perceived as legitimate in society. This process enables them to improve their
chances of survival. They are influenced by coercive, normative and mimetic pressures
in their organizational environment and constantly employ acquiesce, compromise,
avoid, defy and manipulate strategies to respond to these pressures. Aspects of
institutional isomorphism derived from institutional theory are used to explain the
insights into current practices in auditing environmental matters relevant to financial
reporting.