Cultural differences and similarities between German and Chinese internal audit functionsDownload This Article
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Cultural differences influence the behavior of companies, including management styles, relationships with employees, stake- and shareholders or social responsibility. Obviously, the concept of corporate governance encompassing the Internal Audit Function (IAF) is seen differently in different cultures. Therefore, conformance with the globally effective “International Professional Practice Framework” (IPPF) for Internal Auditors presuming a culture-free, completely homogeneous IAF with uniform working standards worldwide, seems more than difficult. The focus of this study is to compare the IAF characteristics in China and Germany, based on data from Chief Audit Executives (CAE) from both countries. We identify more (culturally influenced) differences than similarities between the German and Chinese IAF, although there can be found a number of fundamental political, economic and cultural similarities between both countries.
Keywords: Internal Audit Function, Standards, Corporate Culture, Governance, Germany, China
JEL Classification: G30, M14, M42
Published online: 07.06.2018
How to cite this paper: Eulerich, M., & Westhausen, H.-U. (2018). Cultural differences and similarities between German and Chinese internal audit functions. Journal of Governance & Regulation, 7(2), 57-73. https://doi.org/10.22495/jgr_v7_i2_p6