Auditing Section Research Summaries Space

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  • The Auditing Section
    A Reexamination of Behavior in Experimental Audit Markets:...
    research summary posted May 4, 2012 by The Auditing Section, tagged 04.0 Independence and Ethics, 04.02 Impact of Fees on Decisions by Auditors & Management, 04.04 Moral Development and Individual Ethics Decisions 
    Title:
    A Reexamination of Behavior in Experimental Audit Markets: The Effects of Moral Reasoning and Economic Incentives on Auditor Reporting and Fees
    Practical Implications:

    These findings suggest that auditors with lower moral reasoning scores (i.e., who tend to cooperate with close allies, but tend to be less cooperative with other parties) might in some cases better adhere to the profession’s duties.  Auditors with higher moral reasoning scores (i.e., who tend to view norms and rules as flexible and interpret them depending on a situation) are more likely to depart from auditing conventions and cooperate with others to their mutual benefit.  There have been similar findings, i.e. contrary to what we might expect in relation to moral reasoning, in other research settings.

    Citation:

    Schatzberg, J. W., G. R. Sevcik, B. P. Shapiro, L. Thorne, and R. S. O. Wallace. 2005. A reexamination of behavior in experimental audit markets: The effects of moral reasoning and economic incentives on auditor reporting and fees. Contemporary Accounting Research 22 (1): 229-264.

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  • The Auditing Section
    The Impact of Positive and Negative Mood on the Hypothesis...
    research summary posted April 23, 2012 by The Auditing Section, tagged 04.0 Independence and Ethics, 04.04 Moral Development and Individual Ethics Decisions, 09.0 Auditor Judgment, 09.10 Prior Dispositions/Biases/Auditor state of mind 
    Title:
    The Impact of Positive and Negative Mood on the Hypothesis Generation and Ethical Judgments of Auditors
    Practical Implications:

    The results of this study show that auditors in a negative mood performed better in a hypothesis generation task than did auditors in a positive mood. On the other hand, auditors in a positive mood made more ethical judgments on both a sample-size and inventory write-off ethical dilemma. The study increases our understanding of the effects of mood on auditors’ ethical and professional judgments. The results of this study may be helpful to audit firms in structuring their ethical policies and procedures and developing training programs. In addition, the influence of mood on hypothesis generation may be of particular concern considering the importance of analytical procedures to the audit process.

    Citation:

    Cianci, A.M. and J.L. Bierstaker. 2009.  The impact of positive and negative mood on the hypothesis generation and ethical judgments of auditors. Auditing: A Journal of Practice & Theory 28 (2): 119-144.

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