Perceptions of External Auditors’ Independence: Some Cross-Cultural Evidence

Patel, Chris; Psaros, Jim

doi:10.1006/bare.2000.0138

Cited by 55 publications

(38 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Lavin, 1976; Firth, 1980; Dykxhoorn & Sinning, 1981; Bartlett, 1997; Beattie et al ., 1999; Canning & Gwilliam, 1999; Jenkins & Krawczyk, 2001; Chien & Chen, 2005), (2) experiments (e.g. Pany & Reckers, 1984; Knapp, 1985; Agacer & Doupnik, 1991; Gul, 1991; Lowe et al ., 1999; Patel & Psaros, 2000; Swanger & Chewning, 2001; Jenkins & Krawczyk, 2002) and (3) archival data (e.g. Glezen & Millar, 1985; Chaney & Philipich, 2002; Raghunandan, 2003; Brandon et al ., 2004; Francis & Ke, 2004; Krishnan et al ., 2005; Mishra et al ., 2005).…”

Section: Prior Research and Hypotheses Developmentmentioning

confidence: 99%

Auditor Independence and the Provision of Non‐Audit Services: Perceptions by German Investors

Quick

Warming-Rasmussen

2009

Int J Auditing

View full text Add to dashboard Cite

An economic model by DeAngelo shows that the existence of client-specific quasi-rents impairs auditor independence. The provision of non-audit advisory services (NAS) increases quasi-rents, and thus it is a threat to independence. Recently, a number of changes have been made not only to the relevant international and US regulations, but also to the German regulations related to NAS. A large number of empirical studies have investigated the influence of NAS on the perceived auditor independence. Most of these studies were performed in Anglo-Saxon countries, particularly in the US, and a majority found a negative impact. Six studies are based on data from Germany. Most of them failed to find a significant negative impact on auditor's independence. German investors have not been surveyed so far. Thus an empirical investigation of the impact of NAS on investors'perceptions of auditor independence in Germany seemed promising. It was found that shareholders generally perceive a negative effect on auditor's independence if NAS are provided. The effects of 19 different services have been analysed. For most of them a negative effect was found, even if these services are not explicitly prohibited in Germany. Furthermore, it was shown that the type of NAS influences the degree to which auditor independence is perceived to be impaired. Thus, independence rules related to NAS could be differentiated. Additionally, the study ascertained that perceived auditor independence does increase if NAS are provided by a separate department of the audit firm.

show abstract

Section: Prior Research and Hypotheses Developmentmentioning

confidence: 99%

Auditor Independence and the Provision of Non‐Audit Services: Perceptions by German Investors

Quick

Warming-Rasmussen

2009

Int J Auditing

View full text Add to dashboard Cite

show abstract

“…Previous studies on auditor-client conflict have used a scenario to evaluate if an auditor would accede or oppose a client's resolution such as Gul (1989Gul ( , 1991; Knapp (1985) and Patel and Psaros (2000).…”

Section: Methodsmentioning

confidence: 99%

Audit Exemption for Small and Medium Enterprises: Perceptions of Malaysian Auditors

Hasnah¹,

Ishak²,

Ganesan³

et al. 2016

AAMJ

View full text Add to dashboard Cite

show abstract

“…Other studies have included cultures that duplicate the characteristics of at least one other country included in the study. These studies include seven western European countries that fall within four individualism groupings (Arnold et al, 1999), three countries that fall within two power distance and individualism groupings (Patel et al, 2002), and four countries that fall within two construct groupings (Patel & Psaros, 2000). Similar to the first group of listed studies, our study includes two countries that differ in the relevant cultural attributes.…”

Section: Cultural Characteristics Of Mexico and The United Statesmentioning

confidence: 95%

“…Prior research on the influence of national culture differences on the auditing process has focused on macro-level auditing issues, for example, differences in perceptions of independence, auditor-client disagreements and whistle-blowing (e.g., Patel, 2003;Patel, Harrison, & McKinnon, 2002;Patel & Psaros, 2000;Welton & Davis, 1990). We find no studies that investigate the impact of culture on the application of similar auditing standards.…”

Section: Impact Of Culture On the Audit Environmentmentioning

confidence: 99%

“…The need for this type of research is supported by the findings of Hirst and Koonce (1996, p. 482), who reported that U.S. practitioners believe it is important to determine if accounting students are being well prepared for entry into the auditing profession, and suggest that "studies of the practice of analytical procedures in other countries would enrich our understanding of this important topic." The responses of upperlevel accounting students were the basis for prior studies investigating the impact of culture on auditing (Patel & Psaros, 2000;Welton & Davis, 1990), in studies of entry-level auditors' problem solving abilities (Bierstaker & Wright, 2001;Herz & Schulz, 1999;Lee & Welker, 2007), and the accounting environment (Geiger et al, 2006;Salter, Schulz, Lewis, & Lopez, 2008).…”

Section: Overview Of Analytical Proceduresmentioning

confidence: 99%

See 1 more Smart Citation

The impact of cultural environment on entry-level auditors’ abilities to perform analytical procedures

Hughes

Sander

Higgs

et al. 2009

Journal of International Accounting, Auditing and Taxation

View full text Add to dashboard Cite

a b s t r a c tWe focus on the impact of three of Hofstede's cultural dimensions, power distance, uncertainty avoidance, and individualism, on the results of analytical procedures conducted by entry-level auditors in Mexico and the U.S. Analytical procedures are ideal for this research as they require auditors to use professional judgment and appropriate levels of professional skepticism, abilities related to all three cultural characteristics. We find no other study investigating the impact of culture on the application of auditing procedures similar across the studied cultures.We find cultural characteristics do not affect the participants' abilities to predict income statement balances, but they may influence the ability to predict changes in balance sheet accounts. We also find culture is associated with differences in risk assessments. Our results indicate that participants rarely differentiate accounts that change according to expectation from those that change contrary to expectation, but rather alter their risk assessments to match the direction of balances that increase or decrease.

show abstract

Perceptions of External Auditors’ Independence: Some Cross-Cultural Evidence

Cited by 55 publications

References 33 publications

Auditor Independence and the Provision of Non‐Audit Services: Perceptions by German Investors

Auditor Independence and the Provision of Non‐Audit Services: Perceptions by German Investors

Audit Exemption for Small and Medium Enterprises: Perceptions of Malaysian Auditors

The impact of cultural environment on entry-level auditors’ abilities to perform analytical procedures

Contact Info

Product

Resources

About