Behavioral characteristics in the disclosure of main matters in the audit reports of the banks listed on b3-Brazil stock exchange

Abstract

The literature indicates that the auditor's behavioral characteristics related to the national culture in which he is inserted can influence the disclosure of main audit matters (PAA). This article aims to investigate whether the cultural influence of Brazilian auditors identified through the cultural dimensions of Hofstede (2001) influences the number of main audit matters disclosed by auditors of banks listed on B3. Data collection took place through accounting and financial information extracted from Economática, independent audit reports for the periods ended December 31, 2016 to December 31, 2020 and the tool that assesses the cultural dimensions of countries called Hofstede Insights. The statistical treatment was by multiple linear regressions using the Ordinary Least Squares Method (OLS). Average of 4 PAAs were reported per company, 97% of the sample was audited by Big Four companies. The results indicated that there is no statistical significance regarding the Power Distance (PDI), Uncertainy Avoidance (UAI) and Individualism (IDV) dimensions in relation to the number of main audit matters (PAA) disclosed by the auditors.