Table of Contents
Preliminary Pages
List of contributors
Foreword: Restoring public trust
The response: regulation, regulation, regulation …
Regaining trust
The framework for rebuilding public trust: an ethical code of conduct
Conclusion
References
Introduction: The ethics of auditing
References
1. Approaches to the critique of auditing
1. A legal approach to auditing
Introduction
The audit requirement
The auditor’s appointment and removal
Current legal issues
Conclusion
References
2. A sociological approach to auditing
Introduction
Beyond fraud
Enron in context: perfectly legal creative accounting
What is to be done? Strategies for legal control and their limits
Towards ethical compliance?
Bibliography
3. An international approach to auditing
Introduction
What is public oversight and what will it achieve?
A comparison and evaluation of the dimensions of public oversight
Specific implications of public oversight for Australia
Conclusion
References
Appendix
4. An economic approach to auditing
Introduction
The role of markets and firms in auditing
Variation in audits
The role of the profession and ethics
The role of accounting and audit standard-setting
The role of regulation in auditing
Conclusions and implications
References
5. A philosophical approach to auditing
The scope of auditing ethics
Functions and meaning of the TFV
For whom?
Conclusion
References
2. Auditor independence
6. Conflicts of interest in auditing
Introduction
What is a conflict of interest?
Types of conflicts of interest
Conflicts of interest in the accounting and auditing profession
The dealmakers
Conflicts of interest and corruption
How to deal with conflicts of interest
Conclusion
References
7. Attachments between directors and auditors
Introduction and motivation
Literature review and hypotheses development
Selection and measurement of variables
Methodology
Sample and data
Results
Discussion and conclusions
References
8. Where were the gatekeepers?
A fairytale
Back to the future
The recent corporate collapses
Where were the gatekeepers?
The fairytale comes true
Conclusion
References
9. Management economic bargaining power and auditors’ objectivity
Introduction
Structural power imbalance between management and the auditor
Private interests, public interest and ethical behaviour
The complexity of auditor independence judgments
Situation variables – economic bargaining power of client management
Method and analysis
General discussion
References
10. Criticisms of auditors and earnings management
Introduction
Background
Prior literature
Methodology
Sample
Results
Conclusion, limitations and further research
References
3. Beyond the auditor: the search for solutions
11. Auditor independence
Introduction – are audits different?
The characteristics of a valuable audit
Legislating for auditor independence
The need for inspection
Some implementation issues
Summary of recommendations
Concluding remarks
References
12. Improving ethical judgment through deep learning
Introduction
Theoretical background and hypothesis
Empirical tests
Results and discussion
Conclusion
References
13. Can we teach auditors and accountants to be more ethically competent?
Introduction
What can ethics teaching achieve?
Some typical ways in which ethics is taught to accountants and auditors
Revising our approach to teaching ethics to accountants and auditors
Conclusion
References
14. Do APNAS fees impair auditor independence?
Introduction
APNAS and conflicts of interest
Evidence from the archival literature – perception studies
Evidence from the archival literature – more direct tests
Evidence from the archival literature – auditor focus
Conclusions
References
15. Conclusion
What is the future of audit?