Speaking One Language with Different Accents: A Review on Adoption of International Accounting and Auditing Standards

Suyanto Suyanto


The objective of this study is to comprehend different practices of accounting and auditing across countries. Although over 120 countries use similar accounting and auditing standards, resulting from converging towards IFRS and ISA respectively, a difference of accounting and auditing practices still exists. It needs a comprehensive theory or analytical framework to explain such differences. Yet, there is still a limited overarching theory and comprehensive analytical framework to explain different accounting and auditing practices. Hofstede's work on culture, which is widely used in accounting and auditing research, may be useful to comprehend various accounting and auditing practices. Alternative explanations using political and economic factors are also often proposed to explain the dissimilarities. These fragmentary approaches seem to result in lack of understanding on the issue.  Seeking theories or analytical tools to provide an enhanced explanation of why accounting and auditing practiced differently may be worthwhile avenues.


Culture; accounting; auditing; Hofstede; standards; convergence

Full Text:



Ailon, G. (2008). Mirror, mirror on the wall: Culture’s consequences in a value test of its own design. Academy of Management Review. https://doi.org/10.5465/AMR.2008.34421995

Alexander, M., & Korine, H. (2008). When you shouldn’t go global. Harvard Business Review, 86(12).

Aljifri, K., & Khasharmeh, H. (2006). An investigation into the suitability of the international accounting standards to the United Arab Emirates environment. International Business Review, 15(5), 505–526. https://doi.org/10.1016/j.ibusrev.2006.05.009

Askary, S. (2006). Accounting professionalism – a cultural perspective of developing countries. Managerial Auditing Journal, 21(1), 102–111. https://doi.org/10.1108/02686900610634784

Association of Certified Fraud Examiners. (2010). Report to the Nation on Occupational Fraud & Abuse. Global Fraud Study.

Association of Certified Fraud Examiners. (2016). Report to the Nation on Occupational Fraud & Abuse. Global Fraud Study, 1–92.

Ball, R. (2016). IFRS – 10 years later. Accounting and Business Research, 46(5), 545–571. https://doi.org/10.1080/00014788.2016.1182710

Baskerville-Morley, R. F. (2005). A research note: The unfinished business of culture. Accounting, Organizations and Society, 30(4), 389–391. https://doi.org/10.1016/j.aos.2004.08.002

Baskerville, R. F. (2003). Hofstede never studied culture. Accounting, Organizations and Society. https://doi.org/10.1016/S0361-3682(01)00048-4

Baydoun, N., & Willett, R. (1995). Cultural relevance of western accounting systems to Developing Countries. Abacus, 31(1), 67–92. https://doi.org/10.1111/j.1467-6281.1995.tb00355.x

Bik, O., & Hooghiemstra, R. (2017). The effect of national culture on auditor-in-charge involvement. Auditing, 36(1), 1–19. https://doi.org/10.2308/ajpt-51487

Bing, J. W. (2004). Hofstede’s consequences: The impact of his work on consulting and business practices. Academy of Management Executive, 18(1), 80–87. https://doi.org/10.5465/AME.2004.12689609

Bonner, S. E. (2008). Judgment and decision making in accounting. Upper Saddle River, NJ: Pearson, Prentice Hall.

Chan, K. H., Lin, K. Z., & Mo, P. L. L. (2003). An empirical study on the impact of culture on audit-detected accounting errors. Auditing, 22(2), 281–295. https://doi.org/10.2308/aud.2003.22.2.281

DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational Fields Paul J. DiMaggio; Walter W. Powell. American Sociological Review, 48(2), 147–160. Retrieved from http://www.mendeley.com/research/iron-cage-revisited-institutional-isomorphism-collective-raitionality-organisational-fields/

Favere-Marchesi, M. (2000). Audit quality in ASEAN. The International Journal of Accounting, 35(1), 121–149. https://doi.org/10.1016/S0020-7063(99)00049-7

Friedman, T. L. T. (2005). The world is flat: A brief history of the twenty-first century. New York: Farrar, Straus and Giroux. New York: Farrar, Straus and Giroux. https://doi.org/10.1021/nn403389h

Gabbioneta, C., Greenwood, R., Mazzola, P., & Minoja, M. (2013). The influence of the institutional context on corporate illegality. Accounting, Organizations and Society, 38(6–7), 484–504. https://doi.org/10.1016/j.aos.2012.09.002

Gray, S. J. (1988). Towards a Theory of cultural on the development of accounting influence systems internationally. Abacus, 24(1), 1–15. https://doi.org/10.1111/j.1467-6281.1988.tb00200.x

Gul, F. ., & Tsui, J. (1993). A comparative study of auditors’ attitudes to uncertainty qualifications: An empirical test of strong verses weak uncertainty avoidance hypothesis. International Journal of Accounting, 28(4), 356–364.

Haniffa, R. M., & Cooke, T. E. (2002). Culture, corporate governance and disclosure in Malaysian corporations. Abacus, 38(3), 317–349. https://doi.org/10.1111/1467-6281.00112

Hennart, J.-F., & Reddy, S. (1997). The choice between mergers/acquisitions and joint ventures: The case of Japanese Investors in theUnited States. Strategic Management Journal, 18, 1–12. https://doi.org/10.2307/3088192

Hofstede, G. (1987). Diagnostic organizational cultures. Working Paper, IRIC.

Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations. Netherlands: SAGE Publications, Inc.

Hofstede, G. (2002). Dimensions do not exist: A reply to Brendan McSweeney. Human Relations. https://doi.org/10.1177/0018726702055011921

IAI. (2004). Kolom IFRS: Mana yang menjadi prioritas? : Vol. 20. Akuntan Indonesia. Accounting Perspectives. Jakarta: IAI.

Jemison, D. B., & Sitkin, S. B. (1986). Corporate acquisitions: A process perspective. Academy of Management Review, 11(1), 145–163. https://doi.org/10.5465/AMR.1986.4282648

Jones, M. L. (2007). Hofstede - Culturally questionable? In Oxford Business & Economics Conference. Oxford, UK: Oxford University, UK. https://doi.org/978-0-9742114-7-3

Lin, K. Z., & Fraser, I. A. M. (2008). Auditors’ ability to resist client pressure and culture: Perceptions in China and the United Kingdom. Journal of International Financial Management and Accounting, 19(2), 161–183. https://doi.org/10.1111/j.1467-646X.2008.01020.x

McSweeney, B. (2002). Hofstede’s model of national cultural differences and their consequences: A triumph of faith-a failure of analysis. Human Relations, 55(1), 89–118. https://doi.org/10.1177/0018726702551004

Michas, P. N. (2011). The importance of audit profession development in emerging market countries. Accounting Review, 86(5), 1731–1764. https://doi.org/10.2308/accr-10097

Patel, C., Harrison, G. L., & McKinnon, J. L. (2002). Cultural influences on judgments of professional accountants in auditor-client conflict resolution. Journal of International Financial Management and Accounting, 13(1), 1–31. https://doi.org/10.1111/1467-646X.00077

Roberts, C., Weetman, P., & Gordon, P. (2002). Intrenational financial accounting: A comparative approach (2nd ed.). Essex: Pearson Education Limited.

Roussey, R. S. (2000). A Case for Global Corporate Governance Rules: An Auditor’s Perspective. International Journal of Auditing, 4(3), 203–211. https://doi.org/10.1111/1099-1123.00313

Schwartz, S. H. (1999). A Theory of cultural values and some implications for work. Applied Psychology, 48(1), 23–47. https://doi.org/10.1111/j.1464-0597.1999.tb00047.x

Scott, W. R. (2003). Institutional carriers: reviewing modes of transporting ideas over time and space and considering their consequences. Industrial and Corporate Change, 12(4), 879–894. https://doi.org/10.1093/icc/12.4.879

Søndergaard, M. (1994). Research Note: Hofstede’s consequences: A study of reviews, citations and replications. Organization Studies. https://doi.org/10.1177/01708406940150037

Spector, A., Orrell, M., Davies, S., & Woods, B. (2001). Can reality orientation be rehabilitated? Development and piloting of an evidence-based programme of cognition-based therapies for people with dementia. Neuropsychological Rehabilitation, 11(3–4), 377–397. https://doi.org/10.1080/09602010143000068

Sternberg, E. (1997). The defects of stakeholder theory. Corporate Governance, 5(1), 3–10. https://doi.org/10.1111/1467-8683.00034

Thornton, P. H., Jones, C., & Kury, K. (2005). Institutional logics and institutional change in organizations: Transformation in accounting, architecture, and publishing. Research in the Sociology of Organizations. https://doi.org/10.1016/S0733-558X(05)23004-5

Triandis, H. C. (1993). Collectivism and individualism as cultural syndromes. Cross-Cultural Research, 27(3–4), 155–180. https://doi.org/10.1177/10693971930270031

Yoshikawa, T., & Rasheed, A. A. (2009). Convergence of corporate governance: Critical review and future directions. Corporate Governance, 17(3), 388–404. https://doi.org/10.1111/j.1467-8683.2009.00745.x

Yusoff, H., Othman, R., & Yatim, N. (2014). Culture and accountants’ perceptions of environmental reporting practice. Business Strategy and the Environment, 23(7), 433–446. https://doi.org/10.1002/bse.1793

Zattoni, A., & Cuomo, F. (2008). Why adopt codes of good governance? A comparison of institutional and efficiency perspectives. Corporate Governance: An International Review, 16(1), 1–15. Retrieved from https://econpapers.repec.org/RePEc:bla:corgov:v:16:y:2008:i:1:p:1-15

DOI: https://doi.org/10.24815/jdab.v5i1.8084


  • There are currently no refbacks.

Published by:

Accounting Department supported by IAI KAPd Wilayah Aceh
Faculty of Business and Economics
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
ISSN: 2355-9462, E-ISSN: 2528-1143


Creative Commons License
Jurnal Dinamika Akuntansi dan Bisnis by Prodi Akuntansi Universitas Syiah Kuala is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.unsyiah.ac.id/JDAB/index.