An Investigation of Ethical Environments of CPAs: Public Accounting versus Industry

Bobek, Donna D.; Dalton, Derek W.; Daugherty, Brian; Hageman, Amy M.; Radtke, Robin R.

doi:10.2308/bria-51561

Cited by 29 publications

(32 citation statements)

References 61 publications

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“…When we asked why the questionable inflation of company revenues or delay of revenue recognition might occur, the regulators indicated that they believe it is pressure from management, linked to short term goals as stated by Interviewee 9 -Accountant: "pressure from managers is one of the factors that forced accountants to practice accounting manipulation." Organizations that are more embodied in short-term profit-maximization, tend to be associated with weaker ethical environments (Bobek et al, 2016).…”

Section: Pressures Onmentioning

confidence: 99%

Intertwined institutionalization: pressures on Vietnam’s accounting profession during transition to IFRS

Nguyen

Vesty

Kend

et al. 2020

PAR

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Purpose The purpose of this paper is to understand the institutionally driven changes impacting organizational accounting manipulation in Vietnam’s emerging transitional economy. Specifically, this study explore how Vietnamese accountants and regulators explain questionable accounting transactions and their rationalization for those practices, especially during the period of accounting system transition from Vietnamese accounting standards to International Financial Reporting Standards (IFRS). Design/methodology/approach The study uses interview-based methods involving 22 Vietnamese accountants, financial managers, audit partners and regulators. Findings This study have found dysfunctional approaches to revenue and expense recognition underpinned by institutional theory. At play is a combination of opportunities relating to weak accounting standards and organizational controls; management pressure; and a desire to avoid unwanted scrutiny from Vietnamese regulators. Research limitations/implications This study does not include the views of non-financial managers or other accounting users. Future research could focus more on the perceptions of these other stakeholder groups. Practical implications Accounting manipulation can be collusive, therefore, regulators should have a stricter view and broader examination in the monitoring process. Originality/value This study examine accounting manipulation through the lens of New Institutional Sociology and also share the views of the accountants and regulators. This study argue that weak accounting standards are not the only factors contributing to accounting manipulation. When evaluating the existence of accounting manipulation, this paper find a combination of factors including: opportunities for manipulation, pressure from management and the rationale behind the conduct. These factors should be interpreted in context.

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Section: Pressures Onmentioning

confidence: 99%

Intertwined institutionalization: pressures on Vietnam’s accounting profession during transition to IFRS

Nguyen

Vesty

Kend

et al. 2020

PAR

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“…Table 2 Panel A presents two studies in our sample investigating factors associated with such differences among auditors. Bobek et al (2017) find that the scale elements form a single factor, implying that multiple EMs jointly contribute to ethical culture. They also find stronger perceptions of ethical culture in Big 4 than in non-Big 4 firms.…”

Section: Perceptions Of Ethical Culturementioning

confidence: 88%

Audit Firm Culture: Recent Developments and Trends in the Literature

Alberti

Bedard

Bik

et al. 2020

European Accounting Review

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This paper synthesizes research on audit firm culture (AFC) over the past decade, reviewing recent developments in research on factors instilling culture in audit firms, and how culture influences audit quality and auditors' work attitudes. We develop and apply a three-phase model based on prior research and professional guidance (IAASB, 2014), which maps cultural embedding mechanisms (EMs, visible manifestations and organizational conditions to establish culture), perceptions of existing culture, and consequences of culture. Our synthesis shows that the culture of an audit firm is most oriented toward quality if leadership emphasizes professionalism over commercialism, promotes ethical judgments, and facilitates learning through systems, integration of specialists, and interpersonal interactions among auditors. The research cited shows strong influence on AFC of tone at the top set by leadership, as well as incentives in performance/reward systems. Studies we review generally imply continued concern for the influence of commercialism on AFC, but future research should investigate whether recent forces (i.e. pressure from regulators and efforts by the firms) have caused a cultural shift toward professionalism. We close by suggesting opportunities for future research that can strengthen understanding how AFC can be better managed by firms.

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“…Consistent with prior research (Bobek et al , 2017; Buchheit et al , 2016), gender was included as a control variable given the potential effect on participants’ perceptions of AWAs, potential gender bias and measures of performance. See Table 1 for gender statistics.…”

Section: Methodsmentioning

confidence: 99%

The relationship between justice perceptions and organizational commitment among alternative work arrangement participants and non-participants

Blix

Ortegren

Sorensen

et al. 2021

MAJ

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Purpose The purpose of this paper is to examine the effect of auditor alternative work arrangement (AWA) participants’ and non-participants’ perceptions of procedural and distributive justice on organizational commitment. Design/methodology/approach Using survey data from 110 auditors in the USA, this study uses a regression model to explore how AWA participants’ and non-participants’ perceptions of procedural and distributive justice affect organizational commitment. Findings As predicted, results show both participants’ and non-participants’ perceptions of procedural justice significantly affect organizational commitment. However, neither groups’ perceptions of distributive justice significantly affect their organizational commitment. Originality/value Organizational justice literature has shown that procedural and distributive justice influence organizational commitment. However, no study has controlled for AWA participation. The authors extend research by investigating the effects of procedural and distributive justice perceptions on organizational commitment for both participants and non-participants. The authors also extend accounting research that has narrowly examined AWA benefits and drawbacks, support, viability and perceptions of subordinate career success. Furthermore, there is limited AWA auditing research and this study offers a view prior to the COVID-19 pandemic.

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An Investigation of Ethical Environments of CPAs: Public Accounting versus Industry

Cited by 29 publications

References 61 publications

Intertwined institutionalization: pressures on Vietnam’s accounting profession during transition to IFRS

Intertwined institutionalization: pressures on Vietnam’s accounting profession during transition to IFRS

Audit Firm Culture: Recent Developments and Trends in the Literature

The relationship between justice perceptions and organizational commitment among alternative work arrangement participants and non-participants

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