Auditor ethics: do experience and gender influence auditors’ moral awareness?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nieves Carrera ◽  
Berend Van Der Kolk
Keyword(s):  
Decision Making ◽  
Work Experience ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Moral Dilemmas ◽  
Future Research ◽  
Moral Awareness ◽  
Content Type ◽  
And Gender ◽  
General Business

Purpose The purpose of this paper is to examine how experience and gender relate to the auditors’ moral awareness. Design/methodology/approach Hypotheses are informed by a neurocognitive approach to ethical decision-making and tested using survey data from 191 auditors of a Big Four audit firm in The Netherlands. Findings The main findings indicate that more experienced auditors (i.e. those with more years of work experience, a higher rank and a higher age) show higher levels of moral awareness. This positive relationship is stronger for morally questionable situations related to accounting and auditing, compared to general business moral dilemmas. In addition, the results support the expectation that on average, female auditors have higher moral awareness than their male counterparts. Originality/value To the knowledge of the authors, this is the first study that considers a neurocognitive approach to inform hypotheses about the antecedents of auditors’ moral awareness. The findings suggest that the involvement of experienced auditors in ethical decision-making processes may be beneficial given their enhanced ability to identify ethically disputable situations as such. Furthermore, increasing the number of women in senior positions may positively affect ethical decision-making in audit firms. Finally, this paper presents directions for future research.

The Effects of Professional Role, Decision Context, and Gender on the Ethical Decision Making of Public Accounting Professionals

2015 ◽  
Vol 27 (1) ◽  
pp. 55-78 ◽  
Author(s):  
Donna D. Bobek ◽  
Amy M. Hageman ◽  
Robin R. Radtke
Keyword(s):  
Decision Making ◽  
Work Experience ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Professional Role ◽  
Public Accounting ◽  
Decision Context ◽  
Accounting Professionals ◽  
Males And Females ◽  
And Gender

ABSTRACT This study investigates the degree to which professional role (auditor or tax professional), decision context (an audit or tax environment), and gender influence the ethical decision making of public accounting professionals. The primary analysis, including all 134 accounting professionals who participated in our experiment, indicates that these participants are both less likely to indicate they would concede to a client in a contentious situation and less likely to recommend conceding when they are in an audit as opposed to tax context. Furthermore, work experience in auditing (as opposed to tax) is associated with a decreased likelihood of conceding to the client in both contexts. However, when data for males and females are analyzed separately, professional role, context, and moral intensity are significantly related to males' decision making, but are not significant with respect to females' decisions. This suggests that males and females may use different decision-making processes. Possible theoretical explanations for these findings are discussed.

Ethical decision making in a critical development phase

2012 ◽  
Vol 2 (8) ◽  
pp. 1-11
Author(s):  
Hao Chen ◽  
Xiaoming Zheng ◽  
Lijuan Liu
Keyword(s):  
Decision Making ◽  
Business Ethics ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Moral Dilemmas ◽  
Product Line ◽  
Social Benefits ◽  
Development Phase ◽  
Market Demand ◽  
Content Type

Subject area Ethical decision making, business ethics. Study level/applicability This case is applicable to MBA, EDP and EMBA courses. Case overview TOREAD, a professional provider of outdoor equipment in China, started in business by producing and selling tents. To meet market demand, TOREAD expanded its product line which ranges from outdoor durable tent products to “pan-outdoor” products including footwear and clothing. During the critical expansion phase, TOREAD was challenged by a quality problem in a batch of outsourced sandals that had been manufactured by a contracted supplier. By researching different options and going through an ethical decision making process, TOREAD made the choice of destroying all “problem sandals”. Since then, TOREAD has focused development on product quality improvement and product innovation to establish a sustainable brand image and generate social benefits. TOREAD's decision making in the critical development phase helped it to become the leader in the outdoor product industry in China. Expected learning outcomes This case may be used for courses such as business ethics and strategy. By learning this case, students can understand the process of making ethical decisions when facing moral dilemmas among corporate decision makers, employees and relevant interested parties, and learn how to make strategic decisions to balance company profit growth and social benefits in critical development phases. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Smart, friendly, biased liars? Exploring motivated reasoning and ethical decision-making in public relations

2019 ◽  
Vol 23 (4) ◽  
pp. 412-426 ◽  
Author(s):  
Kerstin Thummes ◽  
Jens Seiffert-Brockmann
Keyword(s):  
Decision Making ◽  
Public Relations ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Conflicts Of Interest ◽  
Motivated Reasoning ◽  
Moral Dilemmas ◽  
Small Sample ◽  
Content Type ◽  
Counter Measures

Purpose The purpose of this paper is to present research on motivated bias and self-deception in ethical decision-making in public relations. Self-deception might explain how professionals evade mental stress in conflicting situations and manage to be persuasive even when they have to act contrary to their own morals or to public interests. Since self-deception impedes moral reasoning, the research purpose is to gain insights on its origins so that effective counter-measures can be developed. Design/methodology/approach First, the state of research on moral dilemmas in public relations and on self-deception in psychology is outlined. Second, four professionals are interviewed to explore typical conflicts of interest and to develop a realistic scenario that gives rise to a moral dilemma. Third, a small sample of professionals (n=9) is confronted with the developed scenario in a qualitative online questionnaire to analyze their reasoning. Findings Results indicate that self-deception in response to moral dilemmas exists in public relations practice. Typical conflicts of interest, boundary conditions for motivated bias and counter-measures are identified. Experienced professionals in leading positions seem to have the confidence to reject mandates they perceive as immoral. Counter-measures against self-deception should therefore address young professionals and practitioners with low advisory influence. Originality/value While public relations research mostly presumes professionals as rational actors, this study sheds light on irrational practices. In contrast to common practice of expert interviews, an indirect and implicit methodological approach is applied to capture unconscious processes of motivated reasoning.

scholarly journals Finding the extraordinary and creating the unexpected

2016 ◽  
Vol 35 (6) ◽  
pp. 789-801 ◽  
Author(s):  
Massimiliano Matteo Pellegrini ◽  
Cristiano Ciappei ◽  
Lamberto Zollo ◽  
Andrea Boccardi
Keyword(s):  
Decision Making ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Prima Facie ◽  
Future Research ◽  
Philosophical Discussion ◽  
Content Type ◽  
Proposed Model ◽  
Rules Of The Game ◽  
Theoretical Conceptualization

Purpose – The purpose of this paper is to present an integrated framework for ethical decision making in uncertain conditions, such as those of entrepreneurship. The model aims to build an exceptional ethical heuristic employable by entrepreneurs. Design/methodology/approach – The theoretical framework is anchored to Aquinas’ theory of practical reason (PR) virtue, specifically its minor virtue gnome, and the Kantian faculty of genius or to better say its modus operandi. Thanks to the composition of these prima facie distant ontologies it is possible to build a “ready-to-use” heuristic. Findings – The paper through a philosophical discussion offers a ready-to-use heuristic that may help entrepreneurs and businesspersons when “navigating” uncertain and troubled situations. In such situations, first it is important to recognize the “exceptionality” of the situation, disregarding where necessary the ordinary criteria of judgment (an act directed by gnome). Second, a creative reconstruction of available knowledge able to reshape the “rules of the game” is needed (an act directed by PR but with connotations drawn from genius). Research limitations/implications – The paper provides only a theoretical conceptualization of the heuristic model. However, the result is a ready-to-use heuristic rule for entrepreneurs, who work in uncertain and unclear conditions. Empirical validation of the framework can represent an opportunity for future research to test the operative impact of such an exceptional ethical heuristic. Originality/value – Little attention has been dedicated to ethical decision making in the entrepreneurial setting built on a virtue ethics approach. This paper’s proposed model may represent an innovative alternative to strictly rational models for ethical decision making.

scholarly journals Marital Status, Religiosity, And Experience As A Predictor Of Ethical Awareness Among Accounting Professionals

2014 ◽  
Vol 12 (2) ◽  
pp. 125 ◽  
Author(s):  
Javad Gorjidooz ◽  
Cindy Greenman
Keyword(s):  
Decision Making ◽  
Marital Status ◽  
Work Experience ◽  
Quantitative Research ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Rank Order ◽  
Future Research ◽  
Ethical Awareness ◽  
Ethical Decisions

Many corporations and their accountants have taken ethics for granted. This oversight has led to the closing of companies such as Enron and WorldCom. Accountants are placed in positions of having to render ethical decisions daily, and when they lose sight of ethical values, the dissolution of corporations can occur. The goal in this quantitative research is to investigate the relationship between the independent variables of marital status, religiosity, and years of work experience and the dependent variable of ethical decision-making. Eighty-three members of the Michigan Association of Certified Public Accountants (MACPA) completed an internet-delivered survey on ethical dilemmas. Because they were contacted through the MACPA weekly E-newsletter, the respondents were those members who chose to accept the weekly electronic newsletter and who read it. The 83 participant responses were saved within Survey Monkey and extracted by the authors. A nonparametric Kruskal-Wallis test examined differences in mean rank order of ethical decision-making scores among the marital status groupings and revealed no significant differences in mean ranks (?2 (4, N=83) = 3.810, p = .432) or among the years of work experience (?2 (5, N = 83) = 7.768, p = .170). Based on results of the tests, the hypothesis that there is no relationship between ethical decision-making and marital status and between ethical decision-making and years of work experience cannot be rejected. A Spearman correlation analysis revealed no significant association (rho = -0.084, p = 0.226, n = 83) between ethical decision-making and religiosity. Based on the results of these and related tests, the hypothesis that there is no relationship between ethical decision-making and religiosity could not be rejected. The results from this study have added to the limited literature on ethical decision-making and three variables of marital status, religiosity, and years of work experience. The authors recommendation for future research is to conduct studies within different professional organizations and with additional variables including gender, sexual orientation, age, and self-assessments. Also, given the small response size of this study, a larger, more representative sample size would give the study more credibility.

scholarly journals TO BRIBE OR TO CHEAT? EFFECTS OF SELF-MONITORING AND GENDER

2021 ◽  
Vol 15 (2) ◽  
pp. 36-48
Author(s):  
Ana Carla Bon
Keyword(s):  
Decision Making ◽  
Individual Differences ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Future Research ◽  
Self Monitoring ◽  
Task Behavior ◽  
Ethics Research ◽  
And Gender ◽  
And Behavior

This study aimed to contribute to business ethics research investigating the effects of two individual differences – self-monitoring personality and gender – on ethical decision making. Applying a bribery scenario (intentions) and a cheating matrix task (behavior), results showed that high self-monitors had more unethical intention and behavior than low self‑monitors. Moreover, low self-monitors had more consistency intention-behavior than high self-monitors, and the inconsistencies of the later were different regarding gender. The bi-dimension of self-monitoring construct – acquisitive and protective – was tested and brought additional evidence about the ones who bribes. Possible explanations of these findings are discussed, with suggestions for future research.

Data-based ethical decision making, lateral relations, and organizational commitment

2018 ◽  
Vol 40 (6) ◽  
pp. 946-963 ◽  
Author(s):  
Sean Robert Valentine ◽  
David Hollingworth ◽  
Patrick Schultz
Keyword(s):  
Decision Making ◽  
Organizational Commitment ◽  
Information Flow ◽  
Structural Equation ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Ethical Issues ◽  
Self Report ◽  
Equation Modeling ◽  
Content Type

Purpose Focusing on ethical issues when making organizational decisions should encourage a variety of positive outcomes for companies and their employees. The purpose of this paper is to determine the degree to which data-based ethical decision making, lateral relations and organizational commitment are interrelated in organizations. Design/methodology/approach Data were collected from business professionals employed at multiple locations of a financial services firm operating in the USA. Mediation analysis (based on structural equation modeling) was used to test the proposed relationships. Findings Results indicated that employees’ perceptions of data-based ethical decision making were positively related to perceived lateral relations, and that perceived lateral relations were positively related to organizational commitment. Research limitations/implications Given that information was collected using only a self-report questionnaire, common method bias could be an issue. In addition, the study’s cross-sectional design limits conclusions about causality. Another limitation involves the study’s homogenous sample, which decreases the generalizability of the findings. Finally, variable responses could have been impacted by individual frames of reference and other perceptual differences. Practical implications Results suggest that information flow enhancements should support or be consistent with horizontal information flow enhancements, and that together these factors should increase employee commitment. Originality/value Given the dearth of existing research, this interdisciplinary investigation is important because it fills gaps in the management literature. This study is also important because the results could inform decisions regarding the use of data analysis in ethical decisions and lateral forms of organizational structuring to improve work attitudes.

Internal and external auditor ethical decision‐making

2013 ◽  
Vol 28 (4) ◽  
pp. 300-322 ◽  
Author(s):  
Donald F. Arnold ◽  
Jack W. Dorminey ◽  
A.A. Neidermeyer ◽  
Presha E. Neidermeyer
Keyword(s):  
Decision Making ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Exploratory Research ◽  
Social Consensus ◽  
Content Type ◽  
International Firms ◽  
Internal Auditors ◽  
External Auditors ◽  
External Auditor

PurposeThe aim of this exploratory research is to compare three sectors of the auditing profession – internal auditors, external auditors from larger international firms, and external auditors from smaller/regional firms – in regard to the influence of situational context on their ethically‐related decision‐making and judgment evaluations.Design/methodology/approachAgainst the backdrop of five vignettes applied with a survey, the paper examines the potential influence of social consensus and magnitude of consequence on the ethical decision path of these three auditor groups.FindingsThe paper finds that, in all cases, social consensus and magnitude of consequences exert influence on the ethical decision path. In the case of social consensus, however the paper finds that the ethical decision path is fully mediated for large firm auditors but is only partial mediated for the other two groups of auditors.Originality/valueThis research examines responses from both internal and external auditors. Comparison between such groups is unique because these groups have not been well researched in the past literature.

Bulldog decision

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Travis Lee Cyphers ◽  
Julianne Renee Apodaca
Keyword(s):  
Decision Making ◽  
Theoretical Basis ◽  
Authentic Leadership ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Content Type ◽  
Military Justice ◽  
Commanding Officer ◽  
Academic Level ◽  
Military Law

Theoretical basis The theoretical basis for this case is a focus on ethical decision-making based upon a decision-making tree proposed by Bagley et al. (2003). Once multiple options are determined as ethical, integrating authentic leadership into the decision-making process can help leaders made difficult decisions. Research methodology The authors conducted extensive research through IBISWorld, EBSCOhost, and academic journals to review ethical decision-making and authentic leadership. The authors successfully piloted the case with over 100 undergraduate and graduate students enrolled in leadership courses. Case overview/synopsis The case describes an ethical decision a young commanding officer must make. A soldier under their leadership has been charged with an inappropriate relationship with a minor. The officer must decide between two actions that are legal within the military justice system. Each decision has ramifications that will significantly affect the organization. Complexity academic level The case is best taught in undergraduate and graduate leadership courses. Course participants do not need a detailed understanding of military leadership or military law to apply fundamental concepts.

The Evolution of Business Ethics to Business Law

2015 ◽  
pp. 145-162
Author(s):  
Ben Tran
Keyword(s):  
Decision Making ◽  
Business Ethics ◽  
Moral Judgment ◽  
Ethical Behavior ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Decision Making Process ◽  
Moral Awareness ◽  
Business Law

Ethics in business ethics and law in business law are not as ambiguous, rhetorical, and esoteric as practitioners portray. Excuses as such have subconsciously become a habitus platinum safeguard against all wrongdoing. The usage of the habitus platinum safeguard is to defuse the unethical and malpractice of practitioners due to the ambiguous, rhetorical, and esoteric factors of and related to ethics in business ethics and law in business law. The ethical decision-making process, from ethics to law, involves five basic steps: moral awareness, moral judgment, ethical behavior, ethical behavior theorizing, and (business) law.

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