The United States

1457 Words6 Pages
The United States has a below-average uncertainty avoidance score as people are not too much anxious about future uncertainties and risks, and many of the US laws rely upon the judges’ judgment. In addition, Americans tend to encourage innovative ideas and free expression. This type of culture determines that in auditing field, auditors need to use their professional judgment in many aspects of an audit. For example, when auditors are doing audit planning, they need to use their judgment to estimate financial ratios according to previous years’ data, and use current year’s actual ratio to compare to their estimation. In high uncertainty avoidance societies, such as Japan, their audit rules and laws are very strict and comprehensive, and…show more content…
The US auditing rules require employees report to managers or board of directors auditing committee when they discover something unusual. Communication to higher level employees is key to the success of an audit work. Culture is defined as “the set of norms, behavior and common characteristics which are shared by members of the same society.” (Flaming et al, 2010) Some set of norms and behaviors are acceptable to one society but it may not be acceptable to other societies. In high individualism countries, such as the US, it is relatively easier for auditors to maintain independence whereas in low individualism countries, such as China, it is much more difficult to maintain independence because the society focuses on relationship between people. In China, the relationship between an auditing firm and its client might be much closer than the relationship in the US, which could results in an impairment of independence more easily. Also, western countries encourage whistle blowing, while in China the society tries to encourage whistle blowing but it is still unacceptable to many people as they do not want to break their relationship with other members in their “group” and they care how other members in their “group” view them. Even if people know someone’s malpractice or illegal actions, they might choose not to report because doing so would make other people
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