Volume 10, Issue 3, March 2015, Pages 1005–1013
Accounting, Economics and Financial Management Conference (AEFMC 2014), Iran 26-27 October 2014
Seyedhossein Naslmosavi1, Saudah Sofian2, Maisarah Mohamed Saat3, and Agha Jahanzeb4
1 Department of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran
2 Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia
3 Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia
4 Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
In spite of the strengthening regulation of ethical conduct and numerous studies in relation with auditors, some factors can affect them in ethical dilemma situation. This study attempted to find the most important terms in dealing with auditor's judgment. The researches on the past studies documented that the most scandals on auditing irregularities was happened because of auditors' unethical behaviors. In addition, previous studies are showed that the understanding of ethical code of conduct and also audit standards is related to make decision by auditors. Consequently, ethics was founded as one important significant factor in process of auditor's judgment on financial statements. The main objective of this research is to investigate the effects of ethics and the code of conduct on auditor's judgments on material misstatements into financial statements. Data are collected from 321 mangers, partners and authoritative auditors among Iranian audit firms. The results of SEM indicate amazing ranking of ethics and code of conduct among Iranian auditors and they significantly affect judgment of these respondents.
Author Keywords: Ethics, Ethical Behavior, Auditor's Judgment, Auditor's opinion.
Accounting, Economics and Financial Management Conference (AEFMC 2014), Iran 26-27 October 2014
Seyedhossein Naslmosavi1, Saudah Sofian2, Maisarah Mohamed Saat3, and Agha Jahanzeb4
1 Department of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran
2 Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia
3 Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia
4 Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
In spite of the strengthening regulation of ethical conduct and numerous studies in relation with auditors, some factors can affect them in ethical dilemma situation. This study attempted to find the most important terms in dealing with auditor's judgment. The researches on the past studies documented that the most scandals on auditing irregularities was happened because of auditors' unethical behaviors. In addition, previous studies are showed that the understanding of ethical code of conduct and also audit standards is related to make decision by auditors. Consequently, ethics was founded as one important significant factor in process of auditor's judgment on financial statements. The main objective of this research is to investigate the effects of ethics and the code of conduct on auditor's judgments on material misstatements into financial statements. Data are collected from 321 mangers, partners and authoritative auditors among Iranian audit firms. The results of SEM indicate amazing ranking of ethics and code of conduct among Iranian auditors and they significantly affect judgment of these respondents.
Author Keywords: Ethics, Ethical Behavior, Auditor's Judgment, Auditor's opinion.
How to Cite this Article
Seyedhossein Naslmosavi, Saudah Sofian, Maisarah Mohamed Saat, and Agha Jahanzeb, “The Effect of Ethics on Auditor's Judgment in Ethical Dilemma Conditions: Evidence from Iranian Auditors,” International Journal of Innovation and Applied Studies, vol. 10, no. 3, pp. 1005–1013, March 2015.
