Skip to main content
Article
The Impact of Cultural Environment on Entry-Level Auditors’ Abilities to Perform Analytical Procedures
Journal of International Accounting, Auditing and Taxation
  • James F. Sander, Butler University
  • Susan B. Hughes
  • Scott D. Higgs
  • Charles P. Cullinan
Document Type
Article
Publication Date
1-1-2009
Disciplines
Additional Publication URL
http://www.worldcat.org/oclc/25725278850600
Abstract
We focus on the impact of three of Hofstede’s cultural dimensions, power distance, uncertainty avoidance, and individualism, on the results of analytical procedures conducted by entry-level auditors in Mexico and the U.S. Analytical procedures are ideal for this research as they require auditors to use professional judgment and appropriate levels of professional skepticism, abilities related to all three cultural characteristics. We find no other study investigating the impact of culture on the application of auditing procedures similar across the studied cultures. We find cultural characteristics do not affect the participants’ abilities to predict income statement balances, but they may influence the ability to predict changes in balance sheet accounts. We also find culture is associated with differences in risk assessments. Our results indicate that participants rarely differentiate accounts that change according to expectation from those that change contrary to expectation, but rather alter their risk assessments to match the direction of balances that increase or decrease.
Rights
This article originally appeared in the Journal of International Accounting, Auditing and Taxation, v.18:1
Citation Information
James F. Sander, Susan B. Hughes, Scott D. Higgs and Charles P. Cullinan. "The Impact of Cultural Environment on Entry-Level Auditors’ Abilities to Perform Analytical Procedures" Journal of International Accounting, Auditing and Taxation Vol. 18 Iss. 1 (2009)
Available at: http://works.bepress.com/james_sander/3/