EXAMINATION OF ETHICAL AND PROFESSIONAL CONDUCT OF LEBANESE EXTERNAL AUDITORS
DOI:
https://doi.org/10.12775/CJFA.2023.001Słowa kluczowe
external auditor, ethic, professional, independence, quality, behaviorAbstrakt
This article proposes to analyze the ethical reasoning of Lebanese external auditors with regard to the extent of their compliance with the code of professional conduct. As part of a positivist epistemological format, a quantitative methodology was employed. The data were collected using semi-directive survey that was sent to 250 Lebanese external auditors. The final sample consisted of 207 Lebanese external auditors for which we used correlation and logistic regression. The results reveal that because of an economic dependance on their clients, Lebanese external auditors demonstrate an inability to remain independent. This limits compliance with the code of professional conduct and thus negatively affects the quality of audit work. This study adds to the sparse literature found in developing countries that highlight the behavior of Lebanese external auditors with respect to professional conduct, which has always been considered sensitive and complex.
Bibliografia
AbdelHak, E., Elamer, A., AlHares, A., & McLaughlin, C. (2019). Auditors’ ethical reasoning in developing countries: the case of Egypt. International Journal of Ethic and Systems, 35(4), 558-583. https://dx.doi.org/10.1108/IJOES-02-2019-0041.
Adekoya, A.C., Oboh, C.S., & Oyewumi, O.R. (2020). Accountants perception of the factors influencing auditors’ ethical behaviour in Nigeria. Heliyon, 6, 1-8. https://dx.doi.org/10.1016/j.heliyon.2020.e04271.
Al-Aidaros, A.H., Abdul Ghani, A., & Idris, K.M. (2014). The consistency between prescriptive and deliberative accountants’ Moral reasoning: Case in Yemen. International Review of Management and Business Research, 3(4), 1797-1808.
Ardelean, A., & Tiron- Tudor, A. (2018). Commitment to public interest in audit – an imperative of strengthening trust in Financiar. Audit financiar, 16(4), 527-543. https://dx.doi.org/10.20869/AUDITF/2018/152/022.
Baratay, C. (2017). DSCG 4 squares: accounting and auditing (5th ed.). Paris : Gualino.
Ben Hamadi, Z. (2020). Auditor’s independence and fear in a context of corruption :pre-revolution Tunisia. Comptabilité Contrôle Audit, 26(3), 35-66. https://dx.doi.org/10.3917/cca.263.0035.
Carolita, M.K., & Rahardjo, S.N. (2012). The influence of work experience, independence, objectivity, integrity, competence, and organizational commitment to the quality o faudit results. (Study at public accounting firm in Semarang). Diponegoro Journal of Accounting, 1(2), 1-11.
Cercle d’Ethique des Affaires (CEA). (2014). The Manifesto for Business Ethics. Retrieved from https://cercle-ethique.net/ (accessed: 29.6.2021).
Chaari, H.F., Belanès, A., & Lajmi, A. (2022). Fraud risk and audit quality: The case of US public firms. Copernican Journal of Finance & Accounting, 11(1), 29–47. https://dx.doi.org/10.12775/CJFA.2022.002.
Charpateau, O. (2012). Auditor ethics. Human Resources Encyclopedia. Vuibert, 14(1),1-14.
Chaudey, M. (2014). Economic analysis of the firm. Paris: Armand Colin.
De Graaf, F.-J. (2019). Ethics and Behavioural Theory: How Do Professionals Assess Their Mental Models? Journal of Business Ethics, 157, 933–947. https://dx.doi.org/10.1007/s10551-018-3955-6.
Dharmasiri, P., Phang, S., Prasad, A., & Webste, J. (2021). Consequences of Ethical and Audit Violations: Evidence from the PCAOB Settled Disciplinary Orders. Journal of Business Ethics. https://dx.doi.org/10.1007/s10551-021-04786-4.
Diallo, Kh., & Diop, Ch. (2020). Explanatory factors of the external auditor independence. Revue du contrôle, de la comptabilité et de l’audit, 4(4), 191 – 217.
El Azhary, N., & Taouab, O. (2016). The determinants of auditors’ independence. European Scientific Journal, 12(34), 158-181. https://dx.doi.org/10.19044/esj.2016.v12n34p158.
Feghali, K. (2015). Auditing techniques and procedures. Paris: L’Harmattan.
Hakim Chaar, R., & Bizri, R. (2015). The education gap in the accounting profession evidence from Lebanon. World Review of Business Research, 5(3), 13-29.
Hardwick research. (2022). Determining your sample size, https://www.hardwickresearch.com/resources/determining-sample-size/ (accessed: 18.03.2022).
Hess, D., Haney, M., & MacPhail, C. (2017). What You Do Know Can Hurt You: An Instructional Case Requiring Application of Professional Standards to an Ethical Dilemma Facing an Auditor and Tax Preparer. Current Issues in Auditing, 11(1), 1-9. https://dx.doi.org/10.2308/ciia-51671.
Jonquières, M., & Joras, M. (2015). The audit, the same intelligent approach for all. Paris: EMS Editions.
Kohlberg, L. (1968). Early education: A cognitive-developmental view. Child Development, 39(4), 1013-1062. https://dx.doi.org/10.2307/1127272.
Latan, H., Jabbour, C.J., & Lopes de Sousa Jabbour, A.B. (2019). Ethical Awareness, Ethical Judgment, and Whistleblowing: A Moderated Mediation Analysis. J Bus Ethics,155, 289-304. https://dx.doi.org/10.1007/s10551-017-3534-2.
Michelik, F. (2008). The attitude-behavior relationship: an inventory. Éthique et Économique, 6(1), 1-11.26.
Neu, D., Saxton, G., Everett, J.D., & Rahaman, A. (2022). The centrality of ethical utterances within professional narratives. Accounting History, 27(1), 75-94. https://dx.doi.org/10.1177/10323732211040272.
Nielsen, R. (2016). Action research as an ethics Praxis method. Journal of Business Ethics, 135, 419–428. https://dx.doi.org/10.1007/s10551-014-2482-3.
Nunnally, J.C. (1978). Psychometric theory (2nd ed.). McGrawHill.
Obert, R., & Mairesse, M. (2015). DSCG4: Accounting and auditing (6th ed.). France: Dunod.
Prat Dit Hauret, C. (2003a). Auditing and cognitive moral development. Finance Contrôle Stratégie, 6(3), 117 -136.
Prat Dit Hauret, C. (2003b). The perceived independence of the auditor. Revue française de gestion, 6(147), 105-117. https://dx.doi.org/ 10.3166/rfg.147.105-117.
The International Federation of Accountants (IFAC). (2006). Code of ethics for professional accountants. Retrieved from https:// www.ifac.org/ (accessed: 06.05.2021).
The Lebanese Association of Certified Public Accountants (LACPA). (2006). Rules of professional conduct for the association of certified accounting experts in Lebanon 2006 (Fin.) r. 463/1(leb.). retrieved from https:///www.lacpa.org.lb/ar/ (accessed: 22.07.2021).
The International Auditing and Assurance Standards Board (IAASB). (2020). International Standard on Quality Management (ISQM) 1, quality management for firms that perform audits or reviews of financial statements, or other assurance or related services engagements. Retrieved from https:///www.iaasb.org/ (accessed: 23.06.2021).
Zahmatkesh, S., & Rezazadeh, J. (2017). The effect of auditor features on audit quality. Tékhne, 15, 79-87. https://dx.doi.org/10.1016/j.tekhne.2017.09.003.
Zerban, A. (2018). Enron of Saudi Arabia: Corporate accounting and auditing failures. Open Journal of Accounting, 7(1), 1-18. https://dx.doi.org/10.4236/ojacct.2018.71001.
Zureigat, Q. (2014). Factors associated with audit reports in Saudi Arabia. Global Journal of Management and Business Research, 14(5), 67-74.
Pobrania
Opublikowane
Jak cytować
Numer
Dział
Licencja
Utwór dostępny jest na licencji Creative Commons Uznanie autorstwa – Bez utworów zależnych 4.0 Międzynarodowe.
Statystyki
Liczba wyświetleń i pobrań: 770
Liczba cytowań: 0
