Effects of personal values on auditors’ ethical decisions

TLDR

Previous research has examined the value profiles of CPAs and accounting students and their influence on ethical decisions. This study investigates how personal values affect auditors’ ethical decision making, being the first empirical examination of values in professional auditors. A random sample of AICPA members was surveyed to assess their value preferences and responses to an ethical dilemma involving client pressure for aggressive financial reporting. Personal value preferences did not affect auditors’ perceptions of moral intensity, whereas perceptions of moral intensity did influence both ethical judgments and behavioral intentions.

Abstract

This study investigates the effects of personal values on auditors’ ethical decision making. Previous accounting research has investigated the value profiles of practicing CPAs and accounting students, and the effects of values on accounting students’ ethical decisions. However, the current study is the first to empirically address the role of values in the ethical decision processes of professional auditors. We surveyed a random sample of AICPA members to assess their value preferences and reactions to an ethical dilemma involving client pressure for aggressive financial reporting. Contrary to our hypothesis, personal value preferences did not influence auditors’ perceptions of the moral intensity of the ethical dilemma. As hypothesized, perceptions of moral intensity influenced both ethical judgments and behavioral intentions.