RESEARCH ARTICLE: EXAMINING AUDITOR ETHICS: THEORETICAL FRAMEWORKS AND IMPLICATIONS FOR BANK FAILURES
;
Audit ethics, Kohlberg's stages of moral development, Agency Theory, ethical decision-making, financial stability, bank failures.Abstrak
The integrity of financial reporting and the ethical behavior of auditors are critical for the stability of financial institutions. This article explores the theoretical frameworks surrounding auditor ethics, particularly Kohlberg's stages of moral development and Agency Theory. Kohlberg's framework illustrates the evolution of moral reasoning and its impact on ethical decision-making, while Agency Theory underscores the importance of aligning the interests of auditors and stakeholders. The article also discusses the implications of these theories for understanding auditor ethics in the context of bank failures, emphasizing the necessity for robust ethical practices to prevent financial crises.
Iqtiboslar
Barton, J., et al. (2015). The Role of Auditors in Corporate Governance. The Journal of Corporate Finance, 35, 72-90.
Chaplais, C., Mard, Y., & Marsat, S. (2016). The Auditor Facing Ethical Dilemmas: The Impact of Ethical Training on Compliance with a Code of Conduct. Accounting Auditing Control, 22(1), 53-83. Available from: https://shs.cairn.info/journal-accounting-auditing-control-2016-1-page-53?lang=en [Accessed 15 October 2024].
Cicero, F. (2021). Behavioral Ethics: Ethical Practice Is More Than Memorizing Compliance Codes. Behavior Analysis Practice, 14, 1169–1178. Available from: https://link.springer.com/article/10.1007/s40617-021-00585-5 [Accessed 15 October 2024].
Darwesh, M., et al. (2023). The Impact of the Principle of Independence on the Quality of the Internal Auditor's Reports. International Journal of Research in Social Sciences and Humanities, 13, 226-242. Available from: https://www.researchgate.net/publication/378338335_The_Impact_of_the_Principle_of_Independence_on_the_Quality_of_the_Internal_Auditor's_Reports1 [Accessed 15 October 2024].
DeFond, M., et al. (2024). Competence vs. Independence: Auditors’ Connections with Members of their Clients’ Business Community. Journal of Accounting and Economics, 78. Available from: https://www.sciencedirect.com/science/article/pii/S0165410124000326 [Accessed 15 October 2024].
Gobbler, E. (2024). What Happened to Silicon Valley Bank. 27 February. Available from: https://www.investopedia.com/what-happened-to-silicon-valley-bank-7368676/ [Accessed 15 October 2024].
Gwala, R., & Mashau, P. (2023). Tracing the Evolution of Agency Theory in Corporate Governance. In N. Baporikar (Ed.), Governance as a Catalyst for Public Sector Sustainability, pp. 260-285. IGI Global. Available from: https://www.igi-global.com/chapter/tracing-the-evolution-of-agency-theory-in-corporate-governance/320997 [Accessed 15 October 2024].
Kanyurhi, E. (2024). When Unethical Practices Harm Relationship Outcomes: Testing the Influence of Consumer-Perceived Unethical Behaviour on Trust and Satisfaction in the Banking Sector. International Journal of Bank Marketing, 42(6), 1178-1211. Available from: https://www.emerald.com/insight/content/doi/10.1108/IJBM-03-2023-0163/full/html [Accessed 15 October 2024].
Lai, V., & Huong, L. (2023). From Hero to Zero - The Case of Silicon Valley Bank. SSRN Electronic Journal. Available from: https://www.sciencedirect.com/science/article/pii/S0148619523000310 [Accessed 15 October 2024].
Lioudis, N. (2024). The Collapse of Lehman Brothers: Case Study. Investopedia. 7 October. Available from: https://www.investopedia.com/articles/economics/09/lehman-brothers-collapse.asp
