THE EFFECT OF CULTURAL KNOWLEDGE IN THE PERCEPTION OF AUDITORS: INTERNAL CONTROLS AND FRAUD, EFECTO DEL CONOCIMIENTO CULTURAL EN LA PERCEPCION DE LOS AUDITORES: CONTROLES INTERNOS Y FRAUDE

Carmen Rios Figueroa

Revista Internacional Administracion & Finanzas, 2013, vol. 6, issue 2, 15-32

Abstract: This research examines how cultural knowledge of the country in where a company is located affects the perception of auditors in the planning of an audit (internal controls and the risk of fraud). The analysis uses the dimensions of power distance and long-term vision to predict the effects of cultural differences. While globalization has eliminated trade barriers between countries, cultural diversity has emerged as a challenge for those who manage or work in multinational companies that are located in different countries. The results of content analysis and statistical analysis is used (binomial analysis with a Z test) showed that the cultural knowledge of a country can influence the perception of the auditors on the reliability of internal controls and the potential for fraud when planning an audit.

Keywords: Culture; Internal Control; Fraud; Visitor Auditor; Power Distance; Long -term Vision (search for similar items in EconPapers)
JEL-codes: F23 M40 M42 (search for similar items in EconPapers)
Date: 2013
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