regulations. The arguments provide a useful platform for future studies. Ding et al.
(2007) conclude that the absence of rules is higher in countries with a less developed
stock market, while the divergence is positively associated with the level of economic
development and the importance and strength of the accounting profession.
Radebaugh and Gray (1997, 2002) point out that accounting development in Brazil
has been influenced by the commercial code and the Companies’ Law which contains
the basic requirements governing the preparation of financial statements and
disclosures for public companies. While listed companies are required to comply with
the national accounting standards.
Generally, the development of accounting systems within a society is linked to the
cultural values as classified by Hofstede (1980, 1984). These values are individualism;
uncertainty avoidance (UA); power distance and masculinity and long- and short-term
orientation. Moreover, Gray’s (1988) model proposes four accounting values which
are professionalism, uniformity, conservatism and secrecy. The professionalism value
constitutes the focus of this study. Gray (1988) proposes that the degree of
professionalism be measured by using auditor judgement from prescriptive (with
detailed legal requirements) to the use of a true and fair view and by professional
structure from a state-controlled accounting profession whose primary function is to
carry out duties in accordance with the law of independent professional bodies of long
standing whose primary function is to carry out audits in accordance with its own
professional judgement.
However, Salter and Niswander (1995) interpret the professionalism as the
dimension of accounting value as a choice or preference as to a source of accounting
rules and decisions (auditor judgement) and the source of regulation of the profession
(profession structure). Salter and Niswander (1995) used two of these variables (auditor
judgement and profession structure) to measure professionalism. The first variable
was measured based on Bavishi (1991) scale ranging from “in conformity with local
legal requirements” to a “true and fair view”. While the second variable can be considered
by the following measures: the longevity of the profession, professional control over
entry into the profession by setting an examination, and professional control over ethical
and other audit behaviour standards.
In this regard, Salter and Niswander (1995) examined Gray’s (1988) model. They
used the control of entry into the profession (exam) and auditor’s opinion (auditor
judgement) on corporations’ financial reports (true/fair view) as measures of
professionalism. They found that professionalism is influenced by the UA level.
UA was strongly and negatively related to both setting exams and auditors’ practice
of the accounting profession.
Buzied (1998) used Salter and Niswander’s (1995) criteria found that the role of the
LAAA in developing, organizing and controlling accounting profession has had very
little success in achieving its objectives and its status is low. Buzied’s (1998) findings
also indicate that the level of professionalism in Libya is inadequate. Further his
findings show that the accounting practices were strongly influenced by the Libyan
laws and regulations, which was similar to the findings of Bait-El-Mal et al. (1973) on
the development of accounting in Libya, which indicated that the tax law of 1968 has
had a huge impact on accounting practice in Libya such that many companies have
often adopted tax guidelines for general external reporting. Aljifri and Khasharmeh
(2006) found that the adoption of IASs in the UAE was due to the fact that the
accounting profession in the UAE is not sufficiently well developed or large enough to
be able to undertake the setting of local accounting standards.