Advertisement

Ethical Responsibility of Statutory Auditors in the Backdrop of Corporate Accounting Scandals: An Analysis of Respondents’ Perceptions

  • Mitrendu Narayan Roy
  • Siddhartha Sankar Saha
Chapter

Abstract

This chapter presents a conceptual discussion of the ‘Ethical Responsibility of Statutory Auditors in the Backdrop of Corporate Accounting Scandals’. Respondents to the fieldwork discussed in Chap.  4 identified a number of key variables that impact on the ethical responsibility of statutory auditors. In this chapter, their opinions on those variables are analysed in order to draw some salient conclusions on this particular theme. Five major factors are identified which play an important role in impacting the ethical responsibility of statutory auditors, of which the ‘regulatory framework and recent events’ is believed to be the most significant. The theme of ethical responsibility is represented by four key distinct dimensions: (a) existing regulation and its inherent limitations, (b) behavioural improvements, (c) global and social approach, (d) education and training in ethics. In this chapter, the opinions of different occupational categories are critically evaluated. While professional accountants (chartered accountants and cost and management accounts) tend to place emphasis on ‘Practical Approaches of Education on Ethics to Professionals’, respondents from the academic fraternity, whether students or academics, give maximum importance to ‘Increasing focus on Ethics in Education’. Investors, who are the major impacted party of statutory auditors’ lack of ethical responsibility, emphasize punitive action and the inner values of statutory auditors. Corporate executives, finally, see the key governing factor of ethical responsibility as the regulatory framework and recent events.

Bibliography

Books and Book Sections

    Research Papers and Working Drafts

      Judiciary Case Decision

      1. Duska, R., Duska, B., & Ragatz, J. (2011). Accounting Ethics. London: Wiley-BlackwellCrossRefGoogle Scholar
      2. Gowthrope, C., & Blake, J. (1998). Ethical Issues in Accounting. London: RoutledgeGoogle Scholar
      3. Jeffrey, C. (Ed.). (2004). Research on Professional Responsibility and Ethics in Accounting – Volume 9. Bingley: JAI PressGoogle Scholar
      4. Bates, H., Waldrup, B., & Calhoun, C. (2008). Ethics Education in US Accounting Practices – A Status Report. Proceedings of the Academy of Accounting and Financial Studies, 13(1), 7–12Google Scholar
      5. Chakrabarti, A. (1996). Ethics in the Era of Scam. Management Accountant, 31(11), 806–812Google Scholar
      6. Chauhan, M., & Gupta, S. (2007). Ethical Audit: Stakeholders Perspective. Chartered Accountant, 56(5), 751–767Google Scholar
      7. Copeland, J. (2005). Ethics as an Imperative. Accounting Horizons, 19(1), 35–43CrossRefGoogle Scholar
      8. Earley, C., & Kelly, P. (2004). A Note on Ethics Educational Interventions in an Undergraduate Auditing Course: Is There an Enron Effect? Issues in Accounting Education, 19(1), 53–71CrossRefGoogle Scholar
      9. Ghaffari, F., Kyriacou, O., & Brennan, R. (2008). Exploring the Implementation of Ethics in UK Accounting Programs. Issues in Accounting Education, 23(2), 183–198CrossRefGoogle Scholar
      10. Koumbiadis, N., & Okpara, J. (2008). Ethics and Accounting Profession: An Exploratory Study of Accounting Students in Post Secondary Institutions. International Review of Business Research Papers, 4(5), 147–156Google Scholar
      11. Mayper, A., Pavur, R., Merino, B., & Hoops, W. (2005). The Impact of Accounting Education on Ethical Values: An Institutional Perspective. Accounting and the Public Interest, 5, 32–55CrossRefGoogle Scholar
      12. Pendergast, M. (2002, July). Conceptual Development in Professional Ethics and Accountancy. Chartered Accountant, 51(1), 58–59Google Scholar
      13. Rau, S., & Weber, J. (2004). The Impact of the Enron Mega-event on Auditors’ Moral Reasoning. Journal of Accounting and Finance Research, 12(6), 106Google Scholar
      14. Swanson, D., & Fischer, D. (2009). Business Ethics Education: If We Don’t Know Where We’re Going, Any Road Will Take Us There. Decision Line, 40(4), 10Google Scholar
      15. Vittal, N. (2000). Ethics and Code of Conduct. Chartered Accountant, 49(5), 19Google Scholar
      16. Council of Institute of Chartered Accountants of India vs. Shri S.N. Sachdeva, No.1/ 2002 (Delhi High Court 2011)Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Mitrendu Narayan Roy
    • 1
  • Siddhartha Sankar Saha
    • 2
  1. 1.Goenka College of Commerce and Business AdministrationUniversity of CalcuttaKolkataIndia
  2. 2.Department of CommerceUniversity of CalcuttaKolkataIndia

Personalised recommendations