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An Investigation of the Association between Cultural Dimensions and Variations in Perceived Use of and Compliance with Internal Auditing Standards in 19 Countries

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  • Abdolmohammadi, Mohammad J.
  • Sarens, Gerrit

Abstract

Using a large sample of chief audit executives and internal audit managers from 19 countries, we investigate potential associations between cultural dimensions and variations in perceived use/compliance with the internal auditing standards. We find uncertainty avoidance to be inversely related to both use and compliance. We also find assertiveness and human orientation to be positively related to compliance but not to use of Standards. Among control variables, we find positive associations for the length of Institute of Internal Auditors (IIA) membership, professional certification in internal auditing, and hours of continuing professional education (CPE) training on both perceived use and compliance. Finally, we find “Cost of compliance” and “Compliance not expected in my country” to be inversely related to perceived use/compliance. Implications of these findings are discussed.

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  • Abdolmohammadi, Mohammad J. & Sarens, Gerrit, 2011. "An Investigation of the Association between Cultural Dimensions and Variations in Perceived Use of and Compliance with Internal Auditing Standards in 19 Countries," The International Journal of Accounting, Elsevier, vol. 46(4), pages 365-389.
    • Handle: RePEc:eee:accoun:v:46:y:2011:i:4:p:365-389
    DOI: 10.1016/j.intacc.2011.09.004
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    Cited by:

    1. Boubacar Diallo, 2021. "Do National Cultures Matter for External Audits? Evidence from Eastern Europe and the Middle East," Journal of Business Ethics, Springer, vol. 172(2), pages 347-359, August.
    2. Amanda Budde-Sung, 2013. "The Invisible Meets the Intangible: Culture’s Impact on Intellectual Property Protection," Journal of Business Ethics, Springer, vol. 117(2), pages 345-359, October.
    3. Wan-Hussin, Wan Nordin & Fitri, Hadiati & Salim, Basariah, 2021. "Audit committee chair overlap, chair expertise, and internal auditing practices: Evidence from Malaysia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 44(C).
    4. Saddam A. Hazaea & Ebrahim Mohammed Al-Matari & Saleh F. A. Khatib & Khaldoon Albitar & Jinyu Zhu, 2023. "Internal Auditing in the Arab World: A Systematic Literature Review and Directions for Future Research," SAGE Open, , vol. 13(4), pages 21582440231, October.
    5. Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2021. "Uncertainty avoidance and stock price informativeness of future earnings," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
    6. Ben Boubakary, 2022. "Audit interne et gouvernance d'entreprise : une lecture théorique au sein des entreprises publiques," Working Papers halshs-03705132, HAL.
    7. Al-Akra, Mahmoud & Abdel-Qader, Waleed & Billah, Mamun, 2016. "Internal auditing in the Middle East and North Africa: A literature review," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 26(C), pages 13-27.
    8. Kitching, Karen & Mashruwala, Raj & Pevzner, Mikhail, 2016. "Culture and Cost Stickiness: A Cross-country Study," The International Journal of Accounting, Elsevier, vol. 51(3), pages 402-417.

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