Organizational culture in public accounting: Size, technology, rank, and functional area

doi:10.1016/0361-3682(92)90018-N

Accounting, Organizations and Society

Volume 17, Issue 7, October 1992, Pages 667-684

https://doi.org/10.1016/0361-3682(92)90018-N Get rights and content

Abstract

This study examines the nature of organizational culture in public accounting and demonstrates that different aspects of culture exist across and within public accounting firms. Organizational culture is defined in terms of values shared by members of an organization (or organizational sub-unit) that manifest themselves in the practices of that organization. Practices particularly important to the development and maintenance of culture include selection and socialization. The hypotheses state that different aspects of organizational culture vary across public accounting firms of different size and technology, and public accountants of different rank and functional area. These hypotheses are tested and largely supported with responses to a paper and pencil instrument, the Values Survey Module (Hofstede, Institute for Research on Intercultural Cooperation, 1982), which was completed by 338 public accountants across the United States. Implications for accountants and future research are also discussed.

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Citation Excerpt :
Thus, our findings are partially consistent with both the views of audit firms and the concerns stated by the PCAOB and provide the potential to guide future research. Organizational culture is “an elusive concept,” so we define it, based on management and accounting research, as a set of shared behavioral norms that define organizations and influence their practices (Carpenter et al., 1994; Dent, 1991, p. 708; Lander et al., 2013; Pratt & Beaulieu, 1992).6 Specifically, organizational culture is made up of “values shared by members of an organization that manifest themselves in the practices of that organization” (Pratt & Beaulieu, 1992, p. 667).
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^☆: The authors are grateful for the comments made at the workshops at the University of Manchester, the University of Washington, the Pennsylvania State University, and Indiana University. The suggestions of Eric Noreen, D. Shores, Pete Dukes, Hein Schreuder, Michael J. Fischer, Mark Dirsmith, Jerry Salamon, Geert Hofstede, and an anonymous reviewer were especially helpful. This study has received support from the Peat Marwick Main and Company Research Opportunities in Auditing Foundation as well as the School of Business and the Accounting Development Fund at the University of Washington.

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Organizational culture in public accounting: Size, technology, rank, and functional area☆

Abstract

Journal of Accounting and Economics

Accounting, Organizations and Society

Accounting, Organizations and Society

Journal of Accounting and Economics

Accounting, Organizations and Society

Comparison of the Work Needs, Attitudes and Preferences of Professional Accountants at Different Career Stages

Journal of Vocational Behavior

Theories of Organizational Culture

Organization Studies

Implications of Culture for the Study of Accounting Control Systems

Presented at the Conference on Accounting and Culture

A Reexamination of Accountants' Organizational-Professional Conflict

The Accounting Review

Technical Routines and Intra-Unit Structure in CPA Firms

The Accounting Review

The Audit Team and the Audit Review Process: an Organizational Approach

Journal of Accounting Literature

An Experimental Study of the Effects of Audit Structure in Uncertain Task Environments

The Accounting Review

Structural Effects

American Sociological Review

Comparisons of Audit Methodologies of Large Firms

The Organic vs. the Mechanistic Audit

Journal of Accounting, Auditing, and Finance

The Organic vs. the Mechanistic Audit: Problems and Pitfalls (Part II)

Journal of Accounting, Auditing, and Finance

A Comparative Analysis of Complex Organizations

Individual Behavior: Evidence from the Accounting Environment

Native View Paradigms: Multiple Cultures and Culture Conflicts in Organizations

Administrative Science Quarterly

Culture's Consequences: International Differences in Work-Related Values

Values Survey Module and Scoring Guide

The Cultural Context of Accounting

Measuring Organizational Culture: a Qualitative and Quantitative Study Across Twenty Cases

Administrative Science Quarterly

Performance Evaluation and Directed Job Effort: Model Development and Analysis in a CPA Firm Setting

Journal of Accounting Research

Group and Organizational Issues in CPA Firm Research