INSTITUTIONAL FACTORS OF ACCOUNTING INFORMATION QUALITY AND AUDIT EFFECTIVENESS IN A PROJECT-BASED ECONOMIC ENVIRONMENT

Abstract

In project-based economic environments, the quality of accounting information and audit effectiveness represent key factors ensuring the stability of financial management and the soundness of investment decision-making. In such environments, the complex structure of projects, limitations in time and resources, as well as the large number of stakeholders significantly increase the demand for reliable financial information. At the same time, insufficient development of institutional factors may negatively affect the reliability of accounting information and the effectiveness of audit processes.

The purpose of this study is to identify the key institutional factors influencing accounting information quality and audit effectiveness in a project-based economic environment and to empirically analyze their interrelationships. Within the framework of the research, particular attention is given to the regulatory and legal environment, organizational governance systems, internal control mechanisms, and the role of professional institutions.

An empirical research approach integrating both quantitative and qualitative analysis methods was employed as the study’s methodology. The data were collected from the financial statements of project-oriented organizations, audit reports, and expert interviews conducted with industry professionals. The results of the statistical analysis indicate a significant positive relationship between the stability of the institutional environment and both accounting information quality and audit effectiveness.

The scientific novelty of this research lies in the proposed comprehensive approach to evaluating accounting and auditing systems within the context of institutional factors in a project-based economic environment. The findings provide important theoretical and practical implications for improving financial management and audit practices.