The influence of country culture on external audit monitoring

Main Article Content

Thiago Santos da Silva
Nádia Cardoso Moreira
https://orcid.org/0000-0002-9085-6595
Danilo Soares Monte-Mor
https://orcid.org/0000-0002-5677-5804
Silvania Neris Nossa
Willams da Conceição de Oliveira
https://orcid.org/0000-0003-0845-5109

Abstract

This paper verifies whether and how the country’s cultural dimensions moderate the relationship between the quality of the audit firm and the level of earnings management. The sample is formed by 88,428 observations from 18,842 companies in 23 countries, covering the period from 2011 to 2018 in an unbalanced panel. The dimensions of national culture were based on the GLOBE project, and the level of earnings management was estimated by Dechow et al. (1995). The results show that national culture influences the monitoring of the largest auditing firms and benefits companies in preparing financial statements. Such results suggest a relationship of audit bias due to cultural aspects, which may compromise the quality of accounting information.

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How to Cite
SILVA, T. S. da; MOREIRA, N. C.; MONTE-MOR, D. S.; NOSSA, S. N.; OLIVEIRA, W. da C. de. The influence of country culture on external audit monitoring. RAE - Revista de Administracao de Empresas , [S. l.], v. 64, n. 5, p. e2023–0436, 2024. DOI: 10.1590/S0034-759020240505. Disponível em: https://periodicos.fgv.br/rae/article/view/91400. Acesso em: 25 jul. 2024.
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