The Influence of Democracy and the Rule of Law on National Auditing Quality—Based on Experience Research on 96 Countries

Abstract

Based on the rule of law and democracy, this paper illustrates the influence of system on the national auditing quality. Meanwhile, it appraises the auditing quality through utilizing the project database of Open Budge Survey issued by International Budget Partnership. The survey on the empirical research has found that democracy, the rule of law and its mutual adaptability can significantly increase national auditing quality. Difference of systems is the important factor leading to differences of the national auditing quality across countries. Besides, economic state and income level play a positive role in increasing national auditing quality.