UTICAJ KULTUROLOŠKIH DIMENZIJA ZEMLJE NA POIMANJE KVALITETA REVIZIJE I IZBOR REVIZORSKIH FIRMI
THE INFLUENCE OF CULTURAL DIMENSIONS OF THE COUNTRY ON THE COMPREHENSION OF AUDIT QUALITY AND CHOICE OF AUDIT FIRMS

Author(s): Svetlana Sabljić, Tajana Serdar Raković
Subject(s): Economy, National Economy, Public Finances, Accounting - Business Administration
Published by: Finrar d.o.o Banja Luka
Keywords: cultural background; dimensions of national culture; behavioral finance; audit firms; audit quality;
Summary/Abstract: Observing the individual countries and markets at the global level, it is evident that there is a significant cultural difference in the business approach and choice of business partners incorporate world, and among others, the audit firms. The motive for our research is associated to the previous analysis of the behavioral approach to corporate finance and auditing.The main research problem relates to determining the influence of the cultural background of a particular country on the choice of audit firms (the Big Four in relation to other audit firms). Many companies, financial institutions, as well as scientists associate the audit firms of the Big Four with audit quality, so the relationship between the assumed quality of audit services and the dimensions of the country’s national culture has been analyzed. The research is conducted by collecting primary and secondary data in order to gain a basis for our research. The analysis of the situation in the audit practice of individual countries is performed by collecting data on the number and percentage of audits performed by the companies of the Big Four and those performed by other audit firms. Analyzing the collected data, we correlated the notion of audit quality with the choice of specific audit firms taking into account cultural differences between countries. The aim of the research is to review the situation in the audit sector and the participation of audit firms from the Big Four in Bosnia and Herzegovina and a comparative analysis with other countries, from a cultural point of view. The research clearly shows that the behavioral and cultural aspects of the country have a significant impact on the understanding of audit quality and on the choice of audit firms in the corporate sector.

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