Cancan Enterprises Inc. is a Canadi

Cancan Enterprises Inc. is a Canadian-based company with subsidiaries located in Brazil, Korea, and Sweden. (Hofstede's cultural dimension index scores for these countries are presented in Exercise 4.) Cancan Enterprises must apply Canadian GAAP worldwide in preparing consolidated financial statements. Cancan has developed a corporate accounting manual that prescribes the accounting policies based on Canadian GAAP that are to be applied by all the company's operations Each year Cancan's internal auditors have the responsibility of ensuring that the company's accounting policies have been applied consistently companywide