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Auditor Independence in Kinship Economies: A MacIntyrian Perspective

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Abstract

This paper explores the practices of auditors in a non-Western cultural environment. Drawing on Alasdair MacIntyre’s virtue ethics framework and narrative interviews with twenty Tunisian auditors, we investigate how auditors reconcile their duty to independence with the expectations of a kinship economy. Additionally, we explore how institutions—such as professional oversight bodies—play into this reconciliation. We find that, although auditors may pursue a telos at odds with international auditing standards, the purpose that these auditors serve is congruent with their moral tradition. That is, rather than positioning themselves as objective arbiters of financial reporting, these auditors position themselves as guardians of their auditees. While this revised position engenders conduct that may appear to violate their independence, our auditors’ practices are congruent with the virtues of justice, courage, and honesty, as they conceive of them in the context of a Tunisian moral tradition. This study makes two main contributions to the literature. First, we provide empirical evidence into the ways in which auditors redefine independence in the context of a kinship economy. Second, we demonstrate that, when auditing local firms, auditors apply a version of professionalism that emphasizes community-oriented care over objectivity.

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Notes

  1. We do not report on the conversations that happened when the tape recorder was off as these were clearly signalled as being “off the record” by participants.

  2. We chose to use the definitions of threats provided by the IFAC Code of Ethics, as they are used by many countries, including Tunisia.

  3. In order to understand the relationship between auditors and identity threats, we sought a theoretical framework that would allow us to map out how an auditor's responses to those threats are based on their institutional environment and personal ethical values. After reviewing the literature, we settled on MacIntyre's After Virtues as this framework aims to reconcile how virtues guide the exercise of a practice in the context of existing traditions (institutional context). MacIntyre specifically focuses on how individuals rely on virtues to navigate challenges in pursuit of their telos (life goal) (MacIntyre, 2007).

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Acknowledgements

E. Pimentel acknowledges the financial support of the Social Science and Humanities Research Council of Canada (SSHRC) and the Quebec CPA Foundation. C. Lesage acknowledges the financial support of the Lawrence S. Bloomberg Chair in Accountancy. The authors would also like to thank workshop participants at ESSEC Business School, HEC Paris, and the University of Innsbruck.

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Social Science and Humanities Research Council,Quebec CPA Foundation

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Authors and Affiliations

  1. Queen’s University, Kingston, Canada

    Erica Pimentel

  2. Concordia University, Montreal, Canada

    Cédric Lesage

  3. KEDGE Business School, Marseille, France

    Soraya Bel Hadj Ali

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  1. Erica Pimentel
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  2. Cédric Lesage
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  3. Soraya Bel Hadj Ali
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Correspondence to Erica Pimentel.

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Appendix

Appendix

Interview Guide

Topic

Example of questions

Introduction

Personal presentation, research confidentiality matters Opening informal discussion to create a comfortable environment for the participant

Path to becoming an auditor

Tell us about your path into the auditing profession

Being an auditor

Tell us about your current position and your experience as an auditor

Independence and related threats

Tell us about your experience in relation to threats to your independence

Have these threats changed since the Revolution?

Sanctions and role of supervisory bodies

Tell us about your experience relating to the enforcement of accounting and auditing standards in Tunisia

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Pimentel, E., Lesage, C. & Ali, S.B.H. Auditor Independence in Kinship Economies: A MacIntyrian Perspective. J Bus Ethics 183, 365–381 (2023). https://doi.org/10.1007/s10551-022-05073-6

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