THE IMPLEMENTATION OF INTERNATIONAL CODES OF ETHICS AMONG PROFESSIONAL ACCOUNTANTS: DO NATIONAL CULTURAL DIFFERENCES MATTER?

Leonard Branson Lisa Chen

Lindsey Anderson University of Illinois Springfield 

ABSTRACT 

The development of business as a global phenomenon has increased the need for the development of standardized accounting and auditing regulations and practice. An effective international accounting regulation includes a strong professional framework, compatible financial accounting reporting standards, high-quality auditing and assurance practice, unified professional ethics and adequate professional education and licensure. Prior research has examined the impact of cultural differences on the adoption of accounting codes of ethics. More countries are entering the global marketplace and are accepting international standards. This study updates prior research to include more countries than prior studies, and extends prior research to include an examination of professional accounting organizations’ continuing efforts to effectively implement international codes of ethics. The cultural dimensions of individualism and uncertainty avoidance in which a professional accounting organization operates help predict the adoption of an international accounting code of ethics.