How Auditors Respond to Ethical Dilemmas: A Study of Auditors in Taiwan

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...

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Bibliographic Details
Published in:Business ethics quarterly 2004-07, Vol.14 (3), p.553
Main Authors: Jeffrey, Cynthia, Dilla, William, Weatherholt, Nancy
Format: Article
Language:English
Subjects:
Auditors
Business ethics
Cognition & reasoning
Ethics
Professional standards
Regression analysis
Sanctions
Studies
Violations
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Summary: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. 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.
ISSN:1052-150X
2153-3326