An exploratory study of the pressures and ethical dilemmas in the audit conflict

  1. Marcela Espinosa-Pike 1
  2. Itsaso Barrainkua 1
  1. 1 Universidad del País Vasco/Euskal Herriko Unibertsitatea
    info

    Universidad del País Vasco/Euskal Herriko Unibertsitatea

    Lejona, España

    ROR https://ror.org/000xsnr85

Aldizkaria:
Revista de contabilidad = Spanish accounting review: [RC-SAR]

ISSN: 1138-4891

Argitalpen urtea: 2016

Alea: 19

Zenbakia: 1

Orrialdeak: 10-20

Mota: Artikulua

DOI: 10.1016/J.RCSAR.2014.10.001 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

Beste argitalpen batzuk: Revista de contabilidad = Spanish accounting review: [RC-SAR]

Laburpena

The present study analyzes the pressures perceived by auditors intheir professional activity. Furthermore, it explores the ethical acceptability of questionable practices and the way auditors resolve the conflicts of interest with which they are confronted. This paper also studies the influence of the size of the audit firm and the experience of the auditors on the perception of pressures, their ethical judgment, and the way of resolving conflicts of interest. Data were collected through a questionnaire administered to auditors from small and medium-sized audit firms in Spain, members of REA (Registro de Economistas Auditores). This study contributes to the international academic literature on auditing behavior, as it provides new empirical data on the pressures perceived, not only those from the audit client, which have been extensively studied in the academic literature, but in addition, it highlights pressures arising from the audit firm itself that could also have a detrimental effect on the audit quality. It also contributes to the understanding of the effect of these pressures on the behavior of auditors. The results of this study are also of particular relevance for the legal and professional Spanish auditing regulators as they face, at this moment, the challenge of developing a set of ethical standards that should improve the ethical judgment and behavior of accounting professionals

Erreferentzia bibliografikoak

  • C.W. Alderman, and J.W. Deitrick Auditors' perceptions of time budget pressures and premature sign-offs: A replication and extension Auditing: A Journal of Practice & Theory 1 1982 54 68
  • I. Azkue Retos y oportunidades de pequeños y medianos despachos y firmas de auditoría ante cambios en la regulación. Marco teórico y estudio empírico (Tesis doctoral) 2012 Universidad del País Vasco UPV/EHU
  • M. Bommer, C. Gratto, J. Gravander, and M. Tuttle A behavioral model of ethical and unethical decision making Journal of Business Ethics 6 4 1987 265 280
  • C.W. Boyd The structural origins of conflicts of interest in the accounting profession Business Ethics Quarterly 14 3 2004 377 398
  • T.G. Calderon, and E. Ofobike Determinants of client-initiated and auditor-initiated auditor changes Managerial Auditing Journal 23 1 2008 4 25
  • M. Cano Rodriguez Tamaño del auditor y calidad de auditoría en las empresas españolas no cotizadas Revista Española de Financiación y Contabilidad 18 135 2007 481 508
  • P. Carmona Ibáñez, and A. Momparler Pechuán Nonaudit services provided by incumbent auditors and earnings management: Evidence of auditor independence from an EU country Revista Española de Financiación y Contabilidad 40 152 2011 587 612
  • M.N. Carrera, I. Gutiérrez, and S. Carmona Concentración en el mercado de auditoría en España: análisis empírico del período 1990-2000 Revista Española de Financiación y Contabilidad 34 125 2005 423 457
  • P. Clarke, N. Hill, and K. Stevens Ethical reasoning abilities: Accounting practitioners in Ireland Irish Business and Administrative Research 17 1996 94 109
  • E. Cook, and T. Kelley Auditor stress and time budgets The CPA Journal 58 7 1988 83 86
  • L. Davenport, and S. Dellaportas Interpreting the public interest: A survey of professional accountants Australian Accounting Review 19 1 2009 11 23
  • E. De las Heras, L. Cañibano, and J.A. Moreira The impact of the Spanish Financial Act (44| 2002) on audit quality Revista Española de Financiación y Contabilidad 41 156 2012 521 546
  • L.E. DeAngelo Auditor size and audit quality Journal of Accounting and Economics 3 1981 183 199
  • F.T. DeZoort, and A.T. Lord A review and synthesis of pressure effects research in accounting Journal of Accounting Literature 16 1997 28 85
  • M. Espinosa-Pike El papel de la universidad en la mejora del comportamiento ético de los profesionales contables Spanish Accounting Review 4 7 2001 53 74
  • G. Eynon, N.T. Hill, and K.T. Stevens Factors that influence the moral reasoning abilities of accountants: Implications for universities and the profession Journal of Business Ethics 16 1997 1297 1309
  • M.A. García Benau, E. Ruiz Barbadillo, and A. Vico Martínez Factores que Condicionan la Elección y el Cambio de Auditor en la Empresa Española Spanish Accounting Review 3 6 2000 49 80
  • J. García Blandón, and J.M. Argilés Bosch Audit firm tenure and qualified opinions: New evidence from Spain Spanish Accounting Review 16 2 2013 118 125
  • Y. Gendron, R. Suddaby, and H. Lam An examination of the ethical commitment of professional accountants to auditor independence Journal of Business Ethics 64 2 2006 169 193
  • J.A. Gonzalo Angulo La auditoría, una profesión en la encrucijada de los noventa Revista Española de Financiación y Contabilidad 24 84 1995 595 630
  • G. Hanlon The commercialisation of accountancy: Flexible accumulation and the transformation of the service class 1994 Macmillan London
  • R.C. Hatfield, S.B. Jackson, and S.D. Vandervelde The effects of prior auditor involvement and client pressure on proposed audit adjustments? Behavioral Research in Accounting 23 2 2011 117 130
  • O. Herrbach Audit quality, auditor behaviour and the psychological contract European Accounting Review 10 4 2001 787 802
  • G. Hofstede Culture's consequences 1980 Sage Publications Beverly Hills, CA
  • M. Hudaib, and T.E. Cooke The impact of managing director changes and financial distress on audit qualification and auditor switching Journal of Business Finance & Accounting 32 9-10 2005 1703 1739
  • Instituto de Contabilidad y Auditoría de Cuentas. (2012). Situación de la Auditoría en España - 2011 (BOICAC N°90/Marzo 2012).
  • International Auditing and Assurance Standards Board. (2014). A framework for audit quality: Key elements that create an environment for audit quality. Retrieved from https://www.ifac.org/publications-resources/framework-audit-quality-key-elements-create-environment-audit-quality
  • International Ethics Standard Board of Accountants. (2013). 2013 Handbook of the Code of Ethics for Professional Accountants. Retrieved from http://www.ifac.org/publications-resources/2013-handbook-code-ethics-professional-accountants
  • J. Jones, D.W. Massey, and L. Thorne Auditors' ethical reasoning: Insights from past research and implications for the future Journal of Accounting Literature 22 2003 45 103
  • C. Koch, M. Weber, and J. Wüstemann Can auditors be independent? Experimental evidence on the effects of client type European Accounting Review 21 4 2012 797 823
  • L. Kohlberg Essays on moral development: Vol II. The Psychology of moral development 1984 Harper & Row San Francisco
  • S.M. Lightner, J.J. Leisenring, and A.J. Winters Underreporting chargeable time: Its effects on client billing, future budget preparation and staff evaluation and scheduling Journal of Accountancy 156 1983 52 57
  • Z.J. Lin, and J. Zhang Ethical awareness of Chinese business managers and accountants and their views on the use of off-book accounts Advances in Accounting 27 1 2011 143 155
  • F.J. López Iturriaga, and C. Zarza Herranz Gobierno corporativo y factores determinantes del cambio de firma auditora en la gran empresa española Revista Española de Financiación y Contabilidad 39 147 2010 521 549
  • A. Lord, and F. DeZoort The impact of commitment and moral reasoning on auditors' responses to social influence pressure Accounting, Organizations, and Society 26 3 2001 215 235
  • I.M. Martínez-León, and I. Olmedo-Cifuentes Reputación percibida por los directivos de auditoras de cuentas españolas Universia Business Review 35 2012 94 112
  • C.J. McNair Proper compromises: The management control dilemma in public accounting and its impact on auditor behavior Accounting, Organizations and Society 16 7 1991 635 653
  • S.M. McNamara, and G.A. Liyanarachchi Time budget pressure and auditor dysfunctional behaviour within an occupational stress model Accountancy Business and the Public Interest 7 1 2008 1 31
  • K. Moreno, and S. Bhattacharjee The impact of pressure from potential client business opportunities on the judgments of auditors across professional ranks Auditing: A Journal of Practice & Theory 22 1 2003 13 28
  • M.W. Nelson Ameliorating conflicts of interest in auditing: Effects of recent reforms on auditors and their clients Academy of Management Review 31 1 2006 30 42
  • M.J. O'Fallon, and K.D. Butterfield A review of the empirical ethical decision-making literature: 1996-2003 Journal of Business Ethics 59 2005 375 413
  • D. Otley, and B. Pierce The operation of control systems in large audit firms Auditing: A Journal of Practice & Theory 15 2 1996 65 84
  • H. Paino, M. Smith, and Z. Ismail Auditor acceptance of dysfunctional behaviour: An explanatory model using individual factors Journal of Applied Accounting Research 13 1 2012 37 55
  • C.F. Picard, S. Durocher, and Y. Gendron From meticulous professionals to superheroes of the business world: A historical portrait of a cultural change in the field of accountancy Accounting, Auditing & Accountability Journal 27 1 2014 73 118
  • B. Pierce, and B. Sweeney Cost-quality conflict in audit firms: An empirical investigation European Accounting Review 13 1 2004 415 441
  • B. Pierce, and B. Sweeney The relationship between demographic variables and ethical decision making of trainee accountants International Journal of Auditing 14 1 2010 79 99
  • L.A. Ponemon Ethical reasoning and selection-socialization in accounting Accounting, Organizations and Society 17 3/4 1992 239 258
  • B. Raghunathan Premature sign-off of audit procedures: An analysis Accounting Horizons 5 4 1991 71 79
  • J. Rest Moral development. Advances in research and theory 1986 Praeger New York
  • E. Ruiz Barbadillo, N. Gómez Aguilar, and E. Biedma López Análisis empírico del efecto de la duración del contrato de auditoría en la recepción de informes cualificados Spanish Accounting Review 8 16 2005 15 39
  • J. Serrano Madrid, E. Ruiz Barbadillo, and I. Martínez Conesa Análisis empírico de la prima por riesgo de negocio en el mercado de auditoría de pequeñas y medianas firmas auditoras en España Revista Española de Financiación y Contabilidad 42 158 2013 239 270
  • W.E. Shafer, R.E. Morris, and A.A. Ketchand Effects of personal values on auditors' ethical decisions Accounting, Auditing & Accountability Journal 14 3 2001 254 277
  • M. Shapeero, H.C. Koh, and L.N. Killough Underreporting and premature sign-off in public accounting Managerial Auditing Journal 18 6/7 2003 478 489
  • G. Sierra Molina, and M. Orta Pérez La experiencia y el comportamiento ético de los auditores: Un estudio empírico Revista Española de Financiación y Contabilidad 34 126 2005 731 754
  • J. Svanberg, and P. Öhman Auditors' time pressure: Does ethical culture support audit quality? Managerial Auditing Journal 28 7 2013 572 591
  • B. Sweeney, D. Arnold, and B. Pierce The impact of perceived ethical culture of the firm and demographic variables on auditors' ethical evaluation and intention to act decisions Journal of Business Ethics 93 4 2010 531 551
  • B. Sweeney, and C. McGarry Commercial and professional audit goals: Inculcation of audit seniors International Journal of Auditing 15 3 2011 316 332
  • B. Sweeney, and B. Pierce Good hours, bad hours and auditors' defence mechanisms in audit firms Accounting, Auditing & Accountability Journal 19 6 2006 858 892
  • J.T. Sweeney, and R.W. Roberts Cognitive moral development and auditor independence Accounting, Organizations and Society 22 3 1997 337 352
  • A.R. Wyatt Accounting professionalism - They just don't get it Accounting Horizons 18 1 2004 45 53
Datuen iturria: Dialnet