Auditors' behavior in an audit conflict situation: a research note on the role of locus of control and ethical reasoning

Article Abstract:

The interaction effects of locus of control and ethical reasoning on how auditors deal with audit conflict situations are examined. For the study, 86 experienced auditors from accounting firms in Hong Kong are asked to examine a case study involving audit conflicts and to describe the lengths to which they will go to to accommodate a client's request. The ethical reasoning of the study participants is measured using Rotter's Locus of Control Scale and the Defining Issues Test. Results of multiple regression analyses show that ethical reasoning serves as moderator between locus of control and the ability of auditors to stand firm against management pressure. These findings suggest that the explicit recognition of locus of control and ethical reasoning offer greater insight into the ethical decision-making process of auditors.

Decision making, Ethical aspects, Auditors, Reasoning, Decision-making (Ethics)

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The impact of prior working papers on auditor evidential planning judgments

Article Abstract:

Research was conducted on planning audit procedures to explore the differences in outcome from various sources of background information. Information was gathered from either prior working papers, current year information, or summarized prior year information. The three experimental groups handled the changing environment equally well. Current information subjects exhibited the lowest level of overall performance. The summarized prior year information group showed high effectiveness and efficiency. The subjects using prior working papers showed lower efficiency.

Management, Planning, Accounting, Financial statements, Internal auditing

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Culture and control: a field study

Article Abstract:

Research has examined the difference is in Japanese and US workers perceptions to management control systems. The Japanese workers experienced less actual bureaucratic procedures because of their culturally-shared values and their attitude of cooperation. The Japanese workers were equally as aware of the management control systems as were their US counter parts. When both groups receive the same amount of actual managerial control, the Japanese perceive it to be more than the US workers.

International aspects, Human resource management, Interpersonal relations, Social perception, Industrial psychology, Supervision of employees, Employee supervision, Attribution (Social psychology), Attribution (Psychology), Industrial-organizational psychology

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