Professional accounting knowledge: the confluence of local practice, national law and global harmonization

The accounting profession is a web of interconnected global, national, and local niches, shaped by professional standards, national laws and provincial practices. Using niche construction theory and archival analysis, we explore to what extent the Italian profession ecosystem embeds international standards or local and national professional knowledge and practices. We study how local practices are influenced by national law, professional bodies, and global harmonization efforts by IFAC. Findings reveal that local practitioners resist global and national influences due to the persistence of inherited cultural practices. We show a disconnect between these three levels, allowing the local to dominate. Three policy and practical implications emerge: all professional bodies should standardize practices across boundaries; rigorous oversight is needed by IFAC of its member bodies and branches; the movement of accountants across niches will foster the sharing of idiosyncratic practices. Together, these recommendations will bring about greater harmonization, ultimately safeguarding the public interest.