Garrido Gomez Maicas and Orcos 2014 such as legal origin eg Crossland and

Garrido gomez maicas and orcos 2014 such as legal

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Garrido, Gomez, Maicas, and Orcos 2014 ), such as legal origin (e.g., Crossland and Hambrick 2011 ) and laws (and/or regulations) that protect the rights of shareholders or creditors (e.g., La Porta, Lopez-de- Silanes, Shleifer, and Vishny 1998 , 2000 ). Culture, broadly defined, refers to ‘‘ traditions, customs, moral values, religious beliefs, and all other norms of behavior that have passed the test of time ’’ ( Pejovich 1999 , 166). These unwritten rules guide human behavior since they provide members of a society with schematic, mental models about what is ‘‘ good ’’ versus ‘‘ bad ’’ and what is ‘‘ appropriate ’’ versus ‘‘ inappropriate, ’’ and they have ‘‘ a strong norm setting influence on societal members ’’ ( Parboteeah, Walter, and Block 2015 , 449). According to the ideas set forth by social norm theory, not only are individuals likely to be aware of societal rules, but they are also likely to believe that a sufficiently large subset of people will follow those rules and expect that others will also conform to these societal rules (e.g., Cialdini and Trost 1998 ; Parboteeah, Hoegl, and Cullen 2008 ; Bicchieri and Xiao 2009 ; Parboteeah et al. 2015 ). This implies that even if an individual does not fully subscribe to a certain societal rule, the individual is likely to follow that societal rule because of its strong norm-setting effect (e.g., Parboteeah et al. 2015 ; Blay, Gooden, Mellon, and Stevens 2016 ; Kanagaretnam et al. 2017 ). In other words, as these Cultural Differences in Auditors’ Compliance with Audit Firm Policy on Fraud Risk Assessment Procedures 27 Auditing: A Journal of Practice & Theory Volume 37, Number 4, 2018
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schematic, mental models have been acquired over time through experience and learning, they have a marked impact on behavior (e.g., Crossland and Hambrick 2011 ), especially when judgmental processes are involved ( Hofstede 2001 ). As auditors are members of the society they live in, their professional judgments, including the application of fraud risk assessment procedures, are likely to be affected by the schematic, mental models prevailing in a society (e.g., Patel et al. 2002 ; Nolder and Kadous 2017 ). Below, we hypothesize how our four cultural dimensions, namely collectivism, power distance, religiosity, and societal trust, are associated with the extent to which auditors follow (or do not follow) global policies and audit methodologies. We focus on these dimensions because limited prior research into rule-following literature suggests that, of the ‘‘ traditional ’’ cultural values, (individualism versus) collectivism and power distance are the most important values to consider (e.g., Helmreich and Merritt 2001 ; Crossler et al. 2013 ; Casey, Riseborough, and Krauss 2015 ) and because they feature prominently in the international accounting and auditing literature (e.g., Cohen et al. 1993 , 1995 ; Patel and Psaros 2000 ; Tsui and Windsor 2001 ; Patel et al. 2002 ). The other two dimensions are relatively uncommon in the accounting and auditing domain, although an increasing number of papers have shown the important effects of these two cultural variables on a
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