Skip to main content
SpringerLink
Log in

The Influence of Publication of Financial Statements, Risk of Takeover and Financial Position of the Auditee on Public Auditors' Unethical Behaviour

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

This study examines the effects of publication of financial statements, the risk of a takeover of the auditee and the auditee's financial position on auditors' willingness to allow material errors in financial statements in case of management pressure. The results show that all factors significantly influence auditors' willingness to allow errors in financial statements.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Bartlett, R. W.: 1993, 'A Scale of Perceived Independence: New Evidence on an Old Concept', Accounting, Auditing and Accountability Journal, 52–67.

  • Farmer, T. A. et al.: 1987, 'An Investigation of the Impact of Economic and Organizational Factors on Auditor Independence', Auditing: A Journal of Practice and Theory, 1–14.

  • Firth, M.: 1981, 'Auditor-Client Relationships and Their Impact on Bankers' Perceived Lending Decisions', Accounting and Business Research, 179–188.

  • Fishbein, M. and I. Ajzen: 1975, Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research(Addison-Wesley, Reading, MA).

    Google Scholar 

  • Gul, F. A.: 1987, 'Field Dependence Cognitive Style as a Moderating Factor in Subjects' Perceptions of Auditor Independence', Accounting and Finance, 37–48.

  • Gul, F. A.: 1989, 'Bankers' Perception of Factors Effecting Auditor Independence', Accounting, Auditing and Accountability Journal, 40–51.

  • Gul, F. A.: 1991, 'size of Audit Fees and Perceptions of Auditors' Ability to Resist Management Pressure in Audit Conflict Situations', Abacus, 162–172

  • Knapp, M. C.: 1985, 'Audit Conflict: An Emperical Study of the Perceived Ability of Auditors to Resist Management Pressure', The Accounting Review202–211.

  • Lavin, D.: 1977, 'some Effects of the Perceived Independence of the Auditor', Accounting, Organizations and Society, 237–244.

  • Lindsay, D.: 1992, 'Auditor-Client Conflict Resolution: an Investigation of the Perceptions of the Financial Community in Australia and Canada', International Journal of Accounting, 342–365.

  • Locke, E. A. (ed): 1986, Generalizing from Laboratory to Field Settings: Research Findings from Industrial-Organizational Psychology, Organizational Behavior, and Human Resource Management(Lexington Books, Massachusetts/Toronto).

    Google Scholar 

  • Lys, T. and R. L. Watts: 1994, 'Lawsuits Against Auditors', Journal of Accounting Research, 65–93.

  • Palmrose, Z. V.: 1988, 'An Analysis of Auditor Litigation and Audit Service Quality', The Accounting Review, 55–73.

  • Pany, K. and P. M. J. Reckers: 1983, 'Auditor Independence and Non–Audit Sevices; Director Views and Their Policy Implications', Journal of Accounting and Public Policy, 43–62.

  • Pany, K., and P. M. J. Reckers: 1984, 'Non-Audit Services and Auditor Independence; a Continuing Problem', Auditing: a Journal of Practice and Theory, 89–97.

  • Poel, J. H. R. van de and A. Schilder: 1990, 'Controlled study Mac Frits Case', in Risk and Judgement in Audit Practice(Limperg Instituut). 304

  • Pratt, J. and J. D. Stice: 1994, 'The Effects of Client Characteristics on Auditor Litigation Risk Judgements, Required Audit Evidence, and Recommended Audit Fees', The Accounting Review, 639–656.

  • Public Oversight Board: 1993, In the Public Interest(AICPA).

  • Public Oversight Board: 1994, Strengthening the Professionalism of the Independent Auditor(AICPA).

  • SEC: 1994, Staff Report on Auditor Independence.

  • Shockley, R. A.: 1981, 'Perceptions of Auditors' Independence: An Empirical Analysis', The Accounting Review, 785–800.

  • Stice, J. D.: 1991, 'Using Financial and Market Information to Identify Pre-Engagement Factors Associated with Lawsuits against Auditors', The Accounting Review, 516–533.

  • St. Pierre, K. and J. A. Anderson: 1984, 'An Analysis of the Factors Associated with Lawsuits against Public Accountants', The Accounting Review, 242–263.

  • Titard, P. L.: 1971, 'Independence and MASOpinions of Financial Statement Users', The Journal of Accountancy, 47–52.

  • Vroom, V.: 1964, Work and Motivation(Wiley, New York).

    Google Scholar 

  • Wieleman, H. H. H. et al.: 1990, 'Claims and Risks in Audit Practice', in Risk and Judgement in Audit Practice(Limperg Instituut).

Download references

Author information

Authors and Affiliations

  1. University of Groningen, De Drie Rozen 20, 9781 JW, Bedum, The Netherlands

    M. van Dijk

Authors
  1. M. van Dijk
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

van Dijk, M. The Influence of Publication of Financial Statements, Risk of Takeover and Financial Position of the Auditee on Public Auditors' Unethical Behaviour. Journal of Business Ethics 28, 297–305 (2000). https://doi.org/10.1023/A:1006239629542

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1006239629542

Search

Navigation