IDEAS home Printed from https://ideas.repec.org/a/src/jafeec/v10y2024i3p401-414.html
   My bibliography  Save this article

Impact of External Auditors’ Ethical Behavior on Audit Quality: A Client Perspective

Author

Listed:
  • Sarwar, Sania
  • Hussain, Khalid
  • Shakir, Mian M. Niaz
  • Ali, Muhammad Adnan

Abstract

Purpose: This study explores the impact of external auditors' ethical behavior on audit quality, with a particular focus on the perspectives of internal auditors in publicly listed Pakistani companies. It aims to address the gap in literature concerning the interplay between ethical behavior, corporate ethical values, and perceived audit quality.Design/Methodology/Approach:Using Structural Equation Modeling (SEM), the study examines the direct and indirect effects of external auditors' ethics on audit quality, with corporate ethical values as a moderating factor. Data were collected via a mail survey and Google Forms from auditors in listed Pakistani firms, yielding 232 usable responses (61% response rate). The analysis utilized SPSS and AMOS for reliability, validity, factor analysis, regression, and correlation.Findings: Results reveal a positive relationship between ethical behavior and perceived audit quality, amplified by strong corporate ethical values. Companies prioritizing ethics reported enhanced audit quality, providing valuable insights for regulators and auditors.Implications/Originality/Value: This research contributes to the understanding of ethical behavior in audit quality, offering actionable insights for improving ethical standards in audit practices. The findings are pertinent for regulatory bodies, auditors, and policymakers aiming to strengthen financial disclosure integrity in Pakistan.&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&

Suggested Citation

  • Sarwar, Sania & Hussain, Khalid & Shakir, Mian M. Niaz & Ali, Muhammad Adnan, 2024. "Impact of External Auditors’ Ethical Behavior on Audit Quality: A Client Perspective," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 10(3), pages 401-414, September.
    • Handle: RePEc:src:jafeec:v:10:y:2024:i:3:p:401-414
    DOI: http://doi.org/10.26710/jafee.v10i3.3109
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/3109/1778
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/jafee.v10i3.3109?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:src:jafeec:v:10:y:2024:i:3:p:401-414. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rabia Rasheed (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.