David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Business Ethics Quarterly 14 (3):553-579 (2004)
This research examines in a collectivist culture the influence of cognitive moral development, attitudes toward rule-directed behavior,and the perceived importance of codes of conduct and professional standards on auditor judgments about ethical dilemmas. Taiwanese audit professionals were asked to respond to two ethical dilemmas. The first dilemma concerns a situation in which the auditor is asked to acquiesce to a controller’s request to conceal an irregularity. The probability that the auditor’s acquiescence is discovered (i.e., the threat of a sanction) was manipulated in this scenario. The second dilemma involves a case in which the auditor has information that a write-down of obsolete inventory will have a material effect on the earnings of a corporation, and must considerwhether or not to inform an individual who is heavily invested in the corporation. The individual’s ingroup status (i.e., whether the individual was a relative or friend of the auditor) was manipulated in this scenario.Auditors were more likely to agree with violations of ethical standards in the first scenario (concealing a client employee’s irregularity)than in the second (revealing confidential information to parties outside the client). In the first scenario, auditors with lower levels of cognitive moral development were less likely to agree with violations of ethical standards when the threat of a sanction was present, while the judgments of those with higher levels of cognitive moral development were not affected by the presence of sanctions. Contrary to expectations, auditors were more likely to agree with violations of ethical standards when the individual involved was a close friend, rather than a relative. In general, as the perceived importance of rules increased, the propensity to violate the Code of Conduct decreased
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
Jo Ann Ho (2010). Ethical Perception: Are Differences Between Ethnic Groups Situation Dependent? Business Ethics 19 (2):154-182.
Similar books and articles
Alan K. M. Au & Danny S. N. Wong (2000). The Impact of Guanxi on the Ethical Decision-Making Process of Auditors – an Exploratory Study on Chinese CPAs in Hong Kong. Journal of Business Ethics 28 (1):87 - 93.
Marietta Peytcheva & Danielle E. Warren (2011). Auditor Professionalism. Business and Professional Ethics Journal 30 (1-2):33-57.
Nonna Martinov-Bennie & Gary Pflugrath (2009). The Strength of an Accounting Firm's Ethical Environment and the Quality of Auditors' Judgments. Journal of Business Ethics 87 (2):237 - 253.
Mary Ann Reynolds (2000). Professionalism, Ethical Codes and the Internal Auditor: A Moral Argument. [REVIEW] Journal of Business Ethics 24 (2):115 - 124.
William A. Kerler & Larry N. Killough (2009). The Effects of Satisfaction with a Client's Management During a Prior Audit Engagement, Trust, and Moral Reasoning on Auditors' Perceived Risk of Management Fraud. Journal of Business Ethics 85 (2):109-136.
Hollis Ashbaugh (2004). Ethical Issues Related to the Provision of Audit and Non-Audit Services: Evidence From Academic Research. [REVIEW] Journal of Business Ethics 52 (2):143-148.
Semra Karacaer, Raheel Gohar, Mehmet Aygün & Cem Sayin (2009). Effects of Personal Values on Auditor's Ethical Decisions: A Comparison of Pakistani and Turkish Professional Auditors. [REVIEW] Journal of Business Ethics 88 (1):53 - 64.
Charles J. Coates, Robert E. Florence & Kristi L. Kral (2002). Financial Statement Audits,a Game of Chicken? Journal of Business Ethics 41 (1-2):1 - 11.
Roger Hussey & George Lan (2001). An Examination of Auditor Independence Issues From the Perspectives of U.K. Finance Directors. Journal of Business Ethics 32 (2):169 - 178.
Phil A. Brown, Morris H. Stocks & W. Mark Wilder (2007). Ethical Exemplification and the AICPA Code of Professional Conduct: An Empirical Investigation of Auditor and Public Perceptions. [REVIEW] Journal of Business Ethics 71 (1):39 - 71.
Terri L. Herron & David L. Gilbertson (2004). Ethical Principles Vs. Ethical Rules. Business Ethics Quarterly 14 (3):499-523.
Michael A. Pearson (1985). Enhancing Perceptions of Auditor Independence. Journal of Business Ethics 4 (1):53 - 56.
William E. Shafer, Alice A. Ketchand & Roselyn E. Morris (2004). Auditors' Willingness to Advocate Client-Preferred Accounting Principles. Journal of Business Ethics 52 (3):213-227.
Patricia Casey Douglas, Ronald A. Davidson & Bill N. Schwartz (2001). The Effect of Organizational Culture and Ethical Orientation on Accountants' Ethical Judgments. Journal of Business Ethics 34 (2):101 - 121.
John Cherry (2006). The Impact of Normative Influence and Locus of Control on Ethical Judgments and Intentions: A Cross-Cultural Comparison. [REVIEW] Journal of Business Ethics 68 (2):113 - 132.
Added to index2011-12-01
Total downloads3 ( #307,951 of 1,101,896 )
Recent downloads (6 months)2 ( #191,964 of 1,101,896 )
How can I increase my downloads?