Secrecy Culture and Audit Opinion: Some International Evidence

Theodore T.Y. Chen, Feida Frank Zhang, Gaoguang ZHOU

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


We examine whether and how auditors respond to audit risks arising from secrecy culture when making audit opinion decisions. Using a sample of international Big N auditors from 33 countries, we find strong and robust evidence that auditors are more likely to issue modified audit opinions to clients domiciled in countries with a strong secrecy culture. In addition, we find that the association between secrecy culture and auditors' propensity to issue modified audit opinions is less pronounced in countries with strong investor protection than that in countries with weak investor protection.

Original languageEnglish
Pages (from-to)274-307
Number of pages34
JournalJournal of International Financial Management and Accounting
Issue number3
Publication statusPublished - Oct 2017

Scopus Subject Areas

  • Accounting
  • Business, Management and Accounting (miscellaneous)
  • Finance


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