Culture and accounting: Ramifications for fraud prevention, the development of international accounting, and reporting

In this dissertation a triangulation approach was adopted to studying influences of culture on accounting. A qualitative study was combined with a literature review and used as an exploratory means to identify research opportunities. An archival study and a field-based questionnaire study then empirically evaluated themes from the exploratory study.;Interviews were conducted and analyzed as part of an exploratory study to understand effects of culture on accounting. The data were considered in light of relevant theories and a case presented for the need to expand the Fraud Triangle framework to formally include societal-level fraud risks. The Fraud Square is recommended as a framework for considering the risks of fraud internationally.;Archival evidence was analyzed to test the proposition that culture has institutional consequences, which in turn influence accounting in each nation. These relationships were theorized by Gray (1988). Using structural equation modeling, relationships were modeled using measures of national culture from Culture, Leadership, and Organizations: The Globe study of 62 Societies; measures of national institutions from the World Bank; and a measure of national accounting from the Financial Standards Foundation. Institutions were found to perform an intermediary role between culture and accounting. These findings have implications for efforts to improve accounting internationally.;Whereas accounting researchers have made inquiries into the willingness of accountants to comply with improper supervision (Lord and DeZoort 2001; Otley and Pierce 1995), the final study in this dissertation investigates the willingness of professional, experienced accountants to provide improper supervision. The study utilizes a field-based questionnaire and relies on the Theory of Planned Behavior (Ajzen, 1991). The influence of social norms, attitudes, perceived opportunity, and incentives on intentions to behave and on the behavior of encouraging subordinates to bias internal reports was confirmed. The Theory of Planned Behavior was also extended using cultural dimensions as moderators. Power distance was found to moderate the effect of attitudes, assertiveness was found to moderate the effect of perceived opportunity, and uncertainty avoidance was found to moderate the effect of incentives on supervisors' intentions to encourage subordinates to bias reports.