Abstract
This paper draws on the economics of ethical compliance model to examine the association between ethical reasoning, perceived risk of detection, perceived levels of penalties and Chinese auditors' ethical behavior in an audit conflict situation. Using 53 Chinese auditors from Shenzen as subjects, and a survey questionnaire, this study found that there is a significant negative association between ethical reasoning and the likelihood of unethical behavior and that this negative association is weaker for auditors who perceive higher risks of detection.
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Gul, F.A., Ng, A.Y. & Wu Tong, M.Y.J. Chinese Auditors' Ethical Behavior in an Audit Conflict Situation. Journal of Business Ethics 42, 379–392 (2003). https://doi.org/10.1023/A:1022504712186
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DOI: https://doi.org/10.1023/A:1022504712186