The Effect of Ethics on Auditor's Judgment in Ethical Dilemma Conditions: Evidence from Iranian Auditors (original) (raw)
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Auditor Ethical Decision Making
This study aimed to investigate the influence: financial information for the making of ethical decision, ethical ideologies, ethical climate, professional ethics, and commitment to the profession. The research data obtained through a survey method to the auditor on Public Accountant Firm and Analysis of data using the IBMSPSS program with a simple regression test and test Moderated Regression Analysis (MRA). The results of statistical tests indicate that the sixth hypothesis is accepted. Financial information has a positive and significant impact on ethical decision-making auditor. However, the effect is small and a set of other factors not included in the model. These five variables moderation, strengthen the influence of financial information to the auditor's ethical decision-making. However, the effect is small and a set of other factors. The research findings show a variable moderating influence ethical idealism is more variable than other woods moderation.Auditor in ethical decision making, unable to put aside personal interests, while able to take difficult decisions in accordance with ethical values, norms that apply without fear of losing a job as an auditor.
This study examines whether perceived ethical climate of the firm, exposure to ethics and moral reasoning have an influence on the ethical judgement of auditors in Malaysia. Analysis suggests that all three factors have positive and significant influence on the ethical judgement of auditors. This study also finds that the moral reasoning of majority of the auditors in Malaysia is contained within the first and second levels of Kohlberg's moral development stage although some have also achieved the highest level. It is deduced that this is because majority of the auditors in Malaysia are more deontologists in approach rather than teleologists and that they tend to adhere to strict rules and processes. Additionally, the study finds that the level of ethical judgement among these auditors is at the average level. The findings will be useful for the government, the regulator and also audit firms which are striving to improve the ethicality of their auditors.
Pertaining Factors on the Audit Quality: Ethical Evidence from Indonesia
JAAF (Journal of Applied Accounting and Finance)
This research attempts to investigate the audit quality based on the pertaining factors including ethical professional behavior, conflict of interest, audit fee that are mediated by religion and cognitive factor. The main issue we tend to discuss relies on the inconsistency of the literature on the audit quality but which ethics represented by the code principles with behavioral constuct prime over the premice. Using survey of 100 auditors from different background (seniority, firm image, and religious aspects); we found that not the ethical behavior matters but the conflict of interest upon the audit quality. Besides, auditor’s fee also becomes a significant parameter of he audit quality. Cognitive factor is necessary for auditor to have best practice on the ethical aspect from the reasoning.
Journal of Education and Vocational Research, 2016
to obtain a sample of 37 respondents. Methods of data analysis using multiple linear regression techniques, test F and test t. These results indicate that the auditor ethics, knowledge and dysfunctional behavior simultaneously significant positive effect on audit quality in the public accounting firm in Makassar. Partially ethics of auditors and knowledge of significant positive effect on audit quality, but not for the dysfunctional behavior that significant negative effect on audit quality. The level of contribution influence auditor ethics, knowledge and dysfunctional behavior on audit quality is high. This is caused by some respondents to variable auditor ethics, knowledge and quality of the audit is still no answer neutral and do not agree, while the dysfunctional behavior variables still exist some respondents who answered disagree and strongly disagree.
European Scientific Journal, 2014
Economic decision-making by enterprise owners, potential investors and the managers and technologists of an organisation rely on information supplied by accountants. Insufficient or inappropriate understanding of the norms of ethics by accountants or individuals acting in their environment leads to the formation of accountants' unethical behaviour and the problems of accounts handling and finance management. This study analysed the models of professional ethical behaviour presented in scientific literature and used for empirical studies as well as the possibility of their application during an assessment of accountants' professional ethics in the context of their virtues and environment, selected the virtues of accountants and environmental factors having an influence on accountants' motivation to behave ethically/unethically and evaluated the importance of these factors for the ethical behaviour of professional accountants. An analytical study design was used in order to develop a theory-based framework. Using Rest's model of executives' ethical behaviour, we analysed the impact of personal moral identification, business environment and the Code of Ethics for Professional Accountants on accountants' professional ethics. In order to establish whether or not these factors predetermine ethical behaviour of professional accountants, an anonymous survey of professional accountants in business was conducted by asking them to evaluate whether or not the presented virtues and business environment-related cases that are likely to cause professional ethics problems are important in accountant's work. Study results lead to the conclusion that the ethical behaviour perceived by accountants is predetermined by their virtues (a sense of duty, integrity, fairness, attentiveness, independence and selfconfidence). Meanwhile, neither a working environment of accountants nor knowledge of the Code of Ethics for Professional Accountants predetermines ethical behaviour.
International Journal of Management, Accounting and Economics, 2021
This study examines accounting ethics' impact on financial report quality and decision-making Kabul based logistic corporations in Afghanistan. Accounting ethics is such an important aspect of the field since accounting ethics is a matter of rules and values. Accounting ethics is mainly an area of applied ethics and is part of corporate ethics and human ethics, financial reporting consistency is a mindset, not a collection of particular activities. For making a decision, a good manager needs to be practical but confident when executing it. Unfortunately, some know-how, at the right moment, to switch from realism to optimism. There for the study examines the effect of accounting ethics on financial report quality and decision making. Totally 30 valid questionnaires, which were collected through Google Form, were analyzed by SPSS 24. To examine the suggested hypotheses, correlation analysis, and linear regression analysis were employed. For examining the reliability of adopted scales, Cronbach's Alpha was used. The study results demonstrated that accounting ethics significantly positively impact financial report quality and decision-making in Kabul-based logistic corporations. This study's findings fill the gap in Afghanistan's accounting literature by empirically investigating accounting ethics' impact on financial report quality and decision-making Kabul based logistic corporations.
Auditors' Moral Philosophies and Ethical Beliefs
Purpose-The objective of this paper is to investigate the influence of moral philosophy on the ethical beliefs of auditors. We argue that individual's moral philosophy is the key factors in how one views ethical issues and largely determines the ethical choices they make. We also seek to discover the influence of personal values on the reasoning processes associated with ethics and explore whether the personal value preferences of auditors, as a manifestation of their moral philosophy, influence their ethical beliefs and (presumably) their subsequent actions.
Determinants of Audit Quality with Auditor Ethics as Moderation in Public Accounting Firm Medan City
https://www.ijrrjournal.com/IJRR\_Vol.9\_Issue.7\_July2022/IJRR-Abstract79.html, 2022
This research aims to analyze the influence of competence, work experience, and accountability on the quality of audits and the ethical interaction of auditors on audit quality. Data collection is done by survey method with questionnaires. The population of this study is the Auditor in Public Accounting Firm Medan City. Primary data is obtained through the spreading of questionnaires. Hypothesis testing in this study used Moderate Regression Analysis. The results showed that work experience affects the quality of audits. At the same time, the variables of competence and accountability have no significant effect on the audit quality. Auditor ethics can also not moderate the relationship of competence, work experience, and accountability to the quality of audits.
Investigating Factors that Influence Malaysian Auditors' Ethical Sensitivity
International Journal of Ethics and Systems, 2021
Purpose-The primary role of auditors is to offer fiduciary services to the society and users of the financial reporting. With this role, users placed their trust and dependent on the ability and judgment made by the auditors during their auditing works. However, recent financial scandals involving high profile companies frustrated the public's expectations, particularly in Malaysia. It is claimed that auditors are not having ethical sensitivity while executing their task in mitigating the fraudulent financial reporting. Therefore, this study aims to examine the influences of ethical orientation, locus of control and firm's ethical culture on the auditors' ethical sensitivity in Malaysia. Methodology/approach-This study collected primary data based on a questionnaire survey among audit firms in Klang Valley area and registered with Malaysian Institutes of Accountants. Findings-The results showed ethical sensitivity has a significant negative relationship with relativism and some cases have a significant positive relationship with idealism. Moreover, it found a significant positive relationship between ethical sensitivity and ethical culture. Originality/value-This paper provides benefit to the audit firms, professional bodies, policy makers, and academia in understanding the factors that might increase the sensitivity of auditors in dealing with ethical issues that could lead to fraudulent financial reporting in the company.