The Influence of Culture on Accounting

All practices related to accounting are human activities and will therefore inevitably be affected by various interpretations and judgments regarding the practical application of accounting concepts and foundations. According to Perera (1989, p.42-43) “culture is often considered to be one of the most powerful environmental factors affecting the accounting system of a country. This consideration is based on the broad premise that accounting is a socio-technical activity involving both human and non-human resources or techniques as well as interaction between the two. Although the technical aspect of accounting is less culture dependent than the human aspect, because the two interact, accounting cannot be culture free”.

Belkaoui (1995, p.3) argued that “Culture in essence determines the judgment/decision process in accounting. Culture, through its components, elements and dimensions, dictates the organizational structure adopted the micro-organisational behaviour and the cognitive functioning of individuals, in such a way as to ultimately affect their judgment/decision process when they are faced with an accounting and/or auditing phenomenon”.

Skills: Accounting

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