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Research Paper | Management | Turkey | Volume 4 Issue 7, July 2015 | Rating: 7 / 10

The Influence of Culture on The Strength of Auditing and Financial Reporting Standards

Mustafa Kenan Erkan ^[2] | Ahmet Asakal

Abstract: This article extends the previous literature on cultural influences over the strength of auditing and reporting standards (SARS) by applying quantile regression methods to examine cultural effects at different percentiles of the strength of auditing and financial reporting standards. We have used the cultural characteristics of countries as defined by Hofstedes culture model. Using data on 79 countries, this article provides empirical evidence that four out of Hofstedes six cultural dimensions have a significant effect on the strength of auditing and financial reporting standards. The findings suggest that individualism, uncertainty avoidance, long-term orientation and indulgence influence a countrys strength of auditing and reporting standards.

Keywords: Strength of auditing and financial reporting standards, culture

Edition: Volume 4 Issue 7, July 2015,

Pages: 1640 - 1644