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    The Effect of National Culture on Auditor-in-Charge...
    research summary posted April 19, 2017 by Jennifer M Mueller-Phillips, tagged 11.0 Audit Quality and Quality Control, 11.08 Proxies for Audit Quality 
    The Effect of National Culture on Auditor-in-Charge Involvement
    Practical Implications:

    The results of this study may help researchers, practitioners, and others to develop a more nuanced approach toward the information value of auditor-in-charge involvement as potentially indicating audit quality. This would be a very timely contribution for audit firms given their desire to globalize their approach to and procedures followed during audits. Specifically, the results indicate that, while the extent of auditor-in-charge involvement may serve as a relevant audit quality indicator, culture needs to be taken into account; consequently, different thresholds may need to be considered for different regions in the world, as opposed to one global standardization.


    Bik, O. and R. Hooghiemstra. 2017. The Effect of National Culture on Auditor-in-Charge Involvement. Auditing: A Journal of Practice and Theory 36 (1): 1 – 19. 

    auditor behavior, auditor-in-charge involvement, cross-national cultural differences, international auditing, and national culture
    Purpose of the Study:

    Although audits are conducted in teams, the auditor-in-charge performs a pivotal role in the audit process. In fact, in an attempt to strengthen audit quality, global audit firms have contemplated setting some standardized thresholds for the number of hours an auditor-in-charge should spend on an audit. However, auditor-in-charge involvement is affected by numerous contextual factors at both the engagement level and the country level. In this study, the authors aim to advance the understanding of what affects differences in auditor-in-charge involvement by focusing on the effects of national culture. 

    Design/Method/ Approach:

     The analyses are based on unique, archival data from a Big 4 audit firm comprising time-record data regarding individual audit engagements reflecting audit practices in 50 countries across the globe. 

    • The authors find that differences in the extent of auditor-in-charge involvement was associated with power distance, individualism versus collectivism and uncertainty avoidance. 
    Audit Quality & Quality Control
    Proxies for Audit Quality