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Ethical Exemplification and the AICPA Code of Professional Conduct: An Empirical Investigation of Auditor and Public Perceptions

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  • Phil Brown
  • Morris Stocks
  • W. Wilder

Abstract

This research applies the impression management theory of exemplification in an accounting study by identifying and measuring differences in both auditor and public perceptions of exemplary behaviors. The auditors were divided into two groups, one of which reported self-perceptions (A-S) while the other group reported their perceptions of a typical auditor (A-O). There were two separate public groups, which gave their perceptions of a typical auditor and were divided based on their levels of accounting sophistication. The more sophisticated public group was comprised of bank loan officers (LO) while the less sophisticated public group consisted of investment club members (IC). Comparisons were made on 30 behaviors contained in the AICPA Code of Professional Conduct, which served as the basis for the research instrument. Profile analysis, a special form of MANOVA technique, was used to analyze the results. A-S perceptions were the highest of the four treatment levels and were significantly higher (i.e., more exemplary) than the perceptions of both the A-O and LO groups. The more sophisticated user group (LO) provided the lowest perceptions of the four treatment levels. For at least four of the six measures, the LO treatment group perceived the typical auditor to be less exemplary than both the IC and A-O treatments. There were no differences in perceptions between the A-O group and IC. Additional analysis revealed that auditors overrated the degree to which the public relied on financial statements. However, both public groups reported a reasonably high level of reliance on financial statements when making decisions. Copyright Springer Science+Business Media, Inc. 2007

Suggested Citation

  • Phil Brown & Morris Stocks & W. Wilder, 2007. "Ethical Exemplification and the AICPA Code of Professional Conduct: An Empirical Investigation of Auditor and Public Perceptions," Journal of Business Ethics, Springer, vol. 71(1), pages 39-71, March.
    • Handle: RePEc:kap:jbuset:v:71:y:2007:i:1:p:39-71
    DOI: 10.1007/s10551-006-9124-3
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    References listed on IDEAS

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    Cited by:

    1. Mustafa AY, 2011. "Commercial High School Students Conceptual Structures of Accounting," Far East Journal of Psychology and Business, Far East Research Centre, vol. 2(2), pages 24-36, February.
    2. Waymond Rodgers & Andrés Guiral & José Gonzalo, 2009. "Different Pathways that Suggest Whether Auditors’ Going Concern Opinions are Ethically Based," Journal of Business Ethics, Springer, vol. 86(3), pages 347-361, May.
    3. Ariela Caglio & Mara Cameran, 2017. "Is it Shameful to be an Accountant? GenMe Perception(s) of Accountants' Ethics," Abacus, Accounting Foundation, University of Sydney, vol. 53(1), pages 1-27, March.
    4. Albert D. Spalding & Gretchen R. Lawrie, 2019. "A Critical Examination of the AICPA’s New “Conceptual Framework” Ethics Protocol," Journal of Business Ethics, Springer, vol. 155(4), pages 1135-1152, April.
    5. Lateef Saheed Ademola & Ayoib B. Ch-Ahmad & Oluwatoyin Johnson Muse Popoola, 2017. "The Forensic Accountants' Skills and Ethics on Fraud Prevention in the Nigerian Public Sector," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(4), pages 77-85, December.
    6. Al-Hasan Al-Aidaros Author_Email: alhasanuum@gmail.com & Kamil Md. Idris & Faridahwati Mohd. Shamsudin, 2011. "The Accountants’ Ethical Code Of Conduct From An Islamic Perspective: Case In Yemen," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-269, Conference Master Resources.
    7. James Weber & Elaine McGivern, 2010. "A New Methodological Approach for Studying Moral Reasoning Among Managers in Business Settings," Journal of Business Ethics, Springer, vol. 92(1), pages 149-166, March.
    8. Al-Hasan Al-Aidaros & Kamil Md. Idris & Faridahwati Mohd. Shamsudin, 2011. "The Accountants’ Ethical Code Of Conduct From An Islamic Perspective: Case In Yemen," Journal of Global Management, Global Research Agency, vol. 2(1), pages 98-123, July.
    9. David Wasieleski & James Weber, 2009. "Does Job Function Influence Ethical Reasoning? An Adapted Wason Task Application," Journal of Business Ethics, Springer, vol. 85(1), pages 187-199, February.

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