Effects of audit morality on audit performance of certified public accountants (CPAs) in Thailand.

Author:Ussahawanitchakit, Phapruke
Position:Report
 
FREE EXCERPT
  1. INTRODUCTION

    Recently, audit morality has become one of ethical behaviors of professional accountants and it is vital to the status and credibility of the auditors' works and practices. Essentially, it is an individual's definition of what is good or right (Thorne and Hartwick, 2001). It enhances auditors to be aware of right practices in order to achieve job successes in their duties and functions. Auditors with audit morality are likely to provide reliable information and report effective information for stakeholders' good decision making. Accordingly, audit morality becomes a key driver of determining and explaining audit quality, audit performance, audit success, audit survival, and audit sustainability in the audit works. Thus, the relationships between audit morality and audit performance are needed to investigate in details.

    With respect to the audit morality-audit performance relationships, audit performance is the dependent variable of the study, and it is also an outcome of practicing professional duties, activities, and responsibilities. For the independent variable of the study, audit morality is the self-imposed or attributable obligation to ensure that actions are knowingly and intentionally performed by rational human beings in the audit works (Ostapski and Isaacs, 1992). Here, it includes moral sensitivity, moral judgment, moral motivation, and moral character. Firstly, moral sensitivity is the interpreting of the situation by being aware how one's actions affect others' (Rest et al., 1999). Secondly, moral judgment is the judging which action is morally right or wrong (Rest et al., 1999). Thirdly, moral motivation is the prioritizing moral values relative to other values (Rest et al., 1999). Fourthly, moral character is the having courage, persisting and overcoming distractions in order to carry out the moral actions (Rest et al., 1999). In sum, moral sensitivity, moral judgment, moral motivation, and moral character are hypothesized to have positive relationships with audit performance in the audit works.

    In this study, audit morality (moral sensitivity, moral judgment, moral motivation, and moral character) is a key driver of determining and explaining audit performance. Hence, the objective of this study is to examine the impacts of audit morality on audit performance of certified public accountants (CPAs) in Thailand. All dimensions of audit morality (moral sensitivity, moral judgment, moral motivation, and moral character) are the independent variables and audit performance is the dependent variable of the study. The key research questions are: (1) How moral sensitivity is related to audit performance, (2) How moral judgment is associated with audit performance, (3) How moral motivation is interacted with audit performance, (4) How moral character is connected to audit performance, and (5) Whether the research relationships are positive.

    This study is outlined as follows. Literature review of audit morality (moral sensitivity, moral judgment, moral motivation, and moral character) and audit performance is addressed and examined; and significant research hypotheses developments are presented. Next, the research methods used to test the hypotheses are discussed including sample selection and data collection procedure, variables and methods. The results of the study derived from 113 certified public accountants (CPAs) in Thailand are indicated and their reasonable discussions with existing literature supports are shown. Lastly, the study concludes by discussing implications for theories and practices, identifying limitations of the study, and providing suggestions and directions for future research.

  2. RELEVANT LITERATURE REVIEWS AND HYPOTHESES DEVELOPMENTS

    Here, the influences of audit morality on audit performance are explicitly investigated. Audit morality includes moral sensitivity, moral judgment, moral motivation, and moral character. Then, to potentially verify the associations among moral sensitivity, moral judgment, moral motivation, moral character, and audit performance, the conceptual, linkage, and research model presents the aforementioned relationships, as shown in Figure 1.

    [FIGURE 1 OMITTED]

    Audit Morality

    In audit works, morality becomes a key determinant of audit quality that explicitly reflects creditability, reliability and usefulness of financial information and others from an audit report. It is an individual's definition of what is good or right (Thorne and Hartwick, 2001). Thus, auditors with greater morality are likely to concern with their levels of moral development that affect ways which they have applied to resolve dilemmas. They tend to implement better audit practices through implementing auditing standards, generally accepted auditing standards and other regulations, rules and laws; and present higher quality of audit reports, audit performance and audit success. Also, morality refers to a self-imposed or attributable obligation to ensure that actions are knowingly and...

To continue reading

FREE SIGN UP