Critical Accounting Theory and Legitimate Theory: Issues and Challenges

This study examines Critical Accounting Theory (CAT) and Legitimacy Theory, exploring their development, key arguments, applications, and challenges across both developed and developing nations. This research adopts a library method, relying on existing studies. A comprehensive literature review was conducted using academic journals, books, and reliable online databases to gather information on CAT and Legitimacy Theory. The focus was on understanding how these theories are applied in both developed economies and developing contexts, particularly in West Africa. The review emphasized existing case studies, theoretical perspectives, and empirical research to critically analyze the impact of accounting practices on social, environmental, and economic systems. The findings emphasize how CAT and Legitimacy Theory are pivotal in analyzing corporate disclosures and accounting practices, helping to understand how businesses navigate power dynamics and societal expectations in various settings. The study concludes with recommendations for enhancing transparency and accountability in corporate accounting practices.