ABSTRACT
This chapter describes auditing regulation in Finland. The chapter has two objectives. First, by describing auditing regulation and its development over the years the chapter provides readers with the knowledge needed to analyze crosscountry differences in auditing and its regulation. Second, the chapter attempts to address the question: what drives changes in audit regulaion? Are the changes in audit regulation stimulated by national scandals or by developments in regulation in other countries? To address this question and to provide a description of the development of audit regulation, we examined past and present legislation, recommendations and instructions of authorities, reports of working groups preparing proposals for regulatory changes, academic studies, as well as articles in professional journals describing and assessing the current state and history of auditing in Finland. To probe deeper into the issue we interviewed two people who have been following the development of regulation in auditing in Finland for decades (Riistama 2005, Troberg 2005).
