An examination of auditors' reporting intentions when another auditor is offered client employment

Research output: Contribution to journalArticle

79 Citations (Scopus)

Abstract

An AICPA ethics ruling prohibits auditors from considering employment with a client during the audit engagement in order to minimize the concerns that financial statement users may have regarding the auditor's independence, in fact or appearance. The objective of this study is to examine auditors' reporting intentions when it is discovered that another auditor is considering employment with the client and has failed to comply with the ethics ruling. We test a model that predicts that auditors' reporting intentions will be influenced by their perceptions of the seriousness of the act, the personal costs of reporting, their responsibility for reporting, and their commitment to the accounting profession. The results indicate that auditors' reporting intentions are stronger when personal costs of reporting are perceived to be lower or personal responsibility for reporting is perceived to be higher. Implications of the findings for audit practice are discussed.

Original languageEnglish (US)
Pages (from-to)44-63
Number of pages20
JournalAuditing
Volume20
Issue number1
StatePublished - Mar 2001
Externally publishedYes

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Auditors
Costs
Audit
Financial statements
Accounting profession
Personal responsibility
Auditor independence
Responsibility

Keywords

  • Auditor independence
  • Professional commitment
  • Reporting intentions

ASJC Scopus subject areas

  • Accounting
  • Economics and Econometrics
  • Finance

Cite this

An examination of auditors' reporting intentions when another auditor is offered client employment. / Kaplan, Steven; Whitecotton, Stacey.

In: Auditing, Vol. 20, No. 1, 03.2001, p. 44-63.

Research output: Contribution to journalArticle

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