International culture and audit deficiencies: Evidence from inspection reports of non-US companies listed in the US

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2023-06-01 DOI:10.1016/j.intaccaudtax.2023.100542

Robin L Knowles, Angel Arturo Pacheco Paredes

引用次数: 0

Abstract

We investigate an important corporate governance mechanism that provides a monitoring function to facilitate the growth and development of international capital markets. Specifically, we investigate the relationship between Hofstede’s cultural values and the audit deficiencies of non-US companies listed on US equity markets, as measured by the number of audit deficiencies found by the Public Company Accounting Oversight Board (PCAOB) from 2005 to 2017. We find evidence supporting a conclusion that audit deficiencies are lower in countries with lower Uncertainty Avoidance scores, higher Individualism scores, and lower Power Distance scores. We conclude that countries with cultures more accepting of ambiguity and uncertainty, having more flexible business practices, and being more tolerant of individual contributions are associated with higher quality audits, as measured by fewer audit deficiencies.

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国际文化与审计缺陷：来自在美国上市的非美国公司检查报告的证据

我们研究了一种重要的公司治理机制，该机制提供了监督功能，以促进国际资本市场的增长和发展。具体而言，我们调查了霍夫斯泰德的文化价值观与在美国股市上市的非美国公司的审计缺陷之间的关系，以上市公司会计监督委员会（PCAOB）在2005年至2017年发现的审计缺陷数量来衡量。我们发现有证据支持这样一个结论，即在不确定性规避分数较低、个人主义分数较高和权力距离分数较低的国家，审计缺陷较低。我们得出的结论是，文化上更容易接受模糊性和不确定性、商业实践更灵活、对个人贡献更宽容的国家，审计质量越高，审计缺陷就越少。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.