A comparison of Japanese and U.S. Auditor decision-making behavior

Abstract

This study extended research in auditing by examining audit decision making in an international context. Audit decisions made by Japanese and U.S. auditors were compared in areas expected to be affected by cultural differences. Hofstede's measures of national characreristics, specifically, rank consciousness and group orientation, were used to predict the effects of cultural differences. In an audit setting, these differences were expected to result in differences in the acceptance of senior management judgment. Results of hypothesis testing provided evidence of the existence of national differences. The differences, however, appeared to be due to environmental factors rather than the theorized effect of cultural differences.