The effect of differences in national culture on auditors{u2019} judgments and decisions : Empirical study / Mariem Mohamed Mostafa ; Supervised Sadek Hamed Mostafa

Thesis (M.Sc.) - Cairo University - Faculty of Commerce - Department of Accounting

Due to globalization effect faced by external auditors in the business environment, consideration of differences in auditors{u2019} culture is needed to help the auditors to obtain accurate and valid judgments and decisions. The main objective of this research is to investigate how the differences in national culture affect the auditors{u2019} judgments and decisions, using a sample of 150 auditors frominternational CPA auditing firms and local audit firms in Egypt. The data was analyzed using Alpha Corn-Bach analysis, Mean, Standard Deviation and Coefficient of Variation, Reliability and intrinsic validity for research variables, KMO and Bartlett's Test of Sphericity, Rotation Sums of Squared Loadings, Component Matrix, Respondent's Demographic Variables, and Sample Test. The results indicated that there is a direct relation between all the selected independent variables for culture (power distance, uncertainty avoidance, individualism/ collectivism, and masculinity/ femininity) and the selected dependent variables for judgments and decisions (audit Planning, analytical procedures, audit documentation, valuation of inventory, culture of management of the client, and materiality level), except for the femininity 2independent factor3 in the simplicity test. So the culture of the auditors will affect their judgments and decisions

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