The Benefits of Auditors’ Sustained Ethical Behavior: Increased Trust and Reduced Costs

Abstract

Studies demonstrating the benefits of ethical behavior at an individual level are scarce. The business ethics literature centers its analysis on unethical behaviors and their consequences, rather than ethical behaviors and their benefits. There is now considerable debate on the role of auditors in society and the function of accounting firms in the free market capitalist system. Specifically, the eminently ethical nature of the auditor's work has been highlighted. Therefore, the aim of our paper is to show the impact of auditors' sustained ethical behavior: the trust it generates. This trust results in considerable benefits for the firm due to a reduction in the costs of the partner's supervision of the auditor. The methodology chosen to validate these claims is a survey of partner of the audit firm in auditing companies. The results of this research confirm the hypotheses raised in the theoretical model.

The influence of sellers’ ethical behaviour on customer’s loyalty, satisfaction and trust

“…It has been reported that those who are not trusting a seller are unlikely to be loyal (Palacios-Florencio et al , 2018). It is also documented that the seller’s ethical behaviour can generate trust (Morales-Sánchez et al , 2019). Therefore, sellers that practice ethical sales obtain a higher degree of commitment from their customers and, simultaneously, increase customers’ trust in the company.…”

Personal Values, Ethical Behavior And Trust: External Auditor Perspective

“…Then there's the research on ethical behavior at the individual level (Morales-Sánchez et al, 2020). Nonetheless, ethical behavior is at the basis of the accounting profession, particularly among auditors, who are expected to adhere to a strict code of ethics (Mubako et al, 2020).…”

“…Research conducted by Morales et al (2020) examines the impact of professional auditors' ethical behavior on auditor trust. There are so many interpretations of trust or trust from various fields of science.…”

“…There are so many interpretations of trust or trust from various fields of science. One understanding of trust is the willingness of one party to accept the expectations of another party regardless of the ability to monitor or control the other person (Mayer et al, 1995;Morales-Sánchez et al, 2020).…”

Penegakkan Etika Profesional Pemeriksa BPK Untuk Peningkatan Kualitas Pengelolaan Keuangan Negara

“…Keputusan etis diartikan sebagai keputusan dari perspektif hukum maupun etis dapat diterima dengan baik oleh masyarakat umum (Hazgui dan Brivot, 2020). Fokus perilaku etis pemeriksa BPK adalah mengkritisi apa yang baik atau buruk dari perspektif moral, dan outcome dari perilaku etis tersebut tidak diukur dalam keuntungan material, tetapi terletak pada nilai intrinsiknya, dimana ketika seorang pemeriksa BPK berperilaku etis maka akan menghasilkan kepercayaan di lingkungan mereka dan masyarakat (Morales-Sánchez, Orta-Pérez dan Rodríguez-Serrano, 2019). Tidak hanya terbatas pada pemeriksa BPK, berperilaku etis merupakan sebuah kewajiban bagi semua kompartemen auditor karena mempengaruhi kredibilitas profesinya.…”