The impact of auditors’ awareness of the profession’s reputation for independence on auditors’ ethical judgement

Damai Nasution · Ralf Östermark

19 citations0/0 files storedSocial Responsibility Journal

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Ethics in Business and Education Accounting and Financial Management

Abstract

Purpose The purpose of this paper is to develop and test the scale of auditors’ awareness of the profession’s reputation for independence, defined as the degree to which auditors recognise the importance of the reputation for independence and acknowledge the impact of their judgements and decisions on that reputation, and to provide preliminary evidence of an association between auditors’ awareness of the profession’s reputation and auditors’ ethical judgement. Design/methodology/approach A seven-item scale was developed to measure auditors’ awareness of the profession’s reputation for independence, and an auditing case was used to measure auditors’ ethical judgement. A survey questionnaire of practising auditors working in auditing firms in Indonesia provides data for testing the validity and reliability of the new scale and proposed hypothesis. Findings The findings show that the scale is unidimensional and has satisfied reliability and validity. Moreover, the preliminary evidence of a positive association between the new scale and auditors’ ethical judgement is provided. Research limitations/implications Further studies should test the validity and reliability of the scale of awareness of the profession’s reputation for independence with larger data and in different settings. Investigation of the antecedent factors of auditors’ awareness of the profession’s reputation for independence is suggested. Originality/value This paper develops a new measure, namely, the awareness of the profession’s reputation for independence. Preliminary evidence to establish an association between that awareness and auditor ethical judgement is provided.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 19 citations exist upstream.

References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1973The Economic Theory of Agency: The Principal's Problem.1985Application of confirmatory factor analysis to the study of self-concept: First- and higher order factor models and their invariance across groups.2005Being Good or Being Known: An Empirical Examination of the Dimensions, Antecedents, and Consequences of Organizational Reputation 1983Agency Problems, Auditing, and the Theory of the Firm: Some Evidence 1994A Review of Current Practices for Evaluating Causal Models in Organizational Behavior and Human Resources Management Research 2004An assessment of the use of structural equation modeling in strategic management research

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.