Private Sector Views on Audit and Accounting Reform in Georgia

Abstract

This paper examines the perceptions and readiness of Georgia’s private sector to meet the requirements of the ongoing Audit and Accounting Reform. It evaluates current progress and estimates long-term implications. The Reform introduces a regulatory framework that requires companies to disclose their accounting information, aiming to improve reporting quality and strengthen Georgia’s investment environment. This regulatory change motivates an examination of how the Reform is unfolding and the progress made to date. The analysis is based on survey data and expert interviews collected since the start of the Reform in 2019 and compares them with more recent data to evaluate progress. Descriptive statistics are used to interpret the findings. Results show limited improvement in knowledge of accounting standards, a generally positive perception of the Reform despite limited understanding, and concerns that compliance will impose unavoidable costs on smaller companies. We conclude that the Reform’s effectiveness depends on long-term developments, while immediate efforts are needed to address hindering factors.