Does Cultural Diversity in an Audit Office Affect Audit Quality?

  • ? 容嘉

Student thesis: Doctoral Thesis


This study employs the cultural background of engagement partners in audit offices to examine the impact of cultural diversity on audit quality by applying a novel method to determine the cultural roots of the engagement partners based on their ancestors thus estimating the level of cultural diversity at the audit office level Using the number of cultural clusters of engagement partners in an audit office and the concentration of cultural clusters it is found that cultural diversity has a negative impact on audit quality indicating that diversity may reduce communication efficiency which in turn lowers audit quality Differences in the impact of cultural diversity on the Big 4 and non-Big 4 accounting firms are also examined in order to verify that cultural diversity has more pronounced negative impacts in Big 4 firms as compared to non-Big 4 firms Overall the results indicate that the degree of cultural diversity in an audit office can have a negative impact on audit quality
Date of Award2020
Original languageEnglish
SupervisorTing-Kai Chou (Supervisor)

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