Abstract:

The number and volume of global mergers and acquisitions as well as the amount of direct foreign investments has been surging over the last decade (World Development Report 2005). A subsequent need for this new wave of globalization is an increased demand on the services of multinational accounting firms. Thus, the decision aids used by these accounting firms and the choices made by those who design and develop these decisions aid used globally are crucial to assure auditors’ reliance on these decision aids. Two experiments are conducted to investigate two behavioral factors that influence auditors’ reliance on decision aids: uncertainty avoidance and disposition toward logical thinking (Hofstede 1991). Staff auditors from the US, France and Japan analyzed a case of management fraud. Their reliance on a computerized decision aid was captured and measured along the two previously mentioned variants.