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Annotated Bibliography
Copyright © 2007 by Thomas Chenoweth
(239) 671-2314
Auditing
Accounting principles and accounting rules need
to be clearly related to eliminate some improper,
discretionary accounting treatment alternatives.
(Rules-Based Standards and the Lack of
Principles in Accounting, Christopher W. Nobes,
Accounting Horizons, Mar. 2005, Vol. 19, Issue 1,
p. 25, 10 pages.)
nonaudit services, close alignment with client,
fight GAAP and ethics rules. (Accounting
Professionalism—They Just Don’t Get It!, Arthur
R. Wyatt, Accounting Horizons, March 2004, Vol.
18, No. 1, pp. 45-53.)
Audit quality is sacrificed where audit teams must
observe unreasonably short time budget
constraints. The quality-cost compromise impairs
auditor capability to make ethical decisions.
(Proper Compromises: The Management Control
Dilemma in Public Accounting and Its Impact on
Auditor Behavior, C.J. McNair, Accounting,
Organizations and Society (1991), Vol. 16, pp.
635-653.)
Advances in audit planning for potential fraud.
(Using Game Theory and Strategic Reasoning
Concepts to Prevent and Detect Fraud, T. Jeffrey
Wilks and Mark F. Zimbelman, Accounting
Horizons, Sep. 2004, Vol. 18, Issue 3, p. 173, 12
pages.)
Audit client corporate culture may affect auditor
independence. (Personal and Organizational
Factors Affecting Auditor Independence:
Empirical Evidence and Directions for Future
Research, Neal M. Ashkanasy and Carolyn A.
Windsor, Research on Accounting Ethics (1997),
Vol. 3, pp. 35-48.)
Audit staff receive more critical employee
evaluations when the audit staff participate on
audit engagements in difficult audit environments.
(The Audit Environment and Evaluations of Audit
Staff, Larry M. Parker and Thomas R. Robinson,
Research on Accounting Ethics (1997), Vol. 3,
pp. 21-34.)
Audit client’s CFO was an illegal alien but is now
a U.S. citizen. Audit manager’s recommendation
to audit partner. (To Tell or Not to Tell: An
Auditing Case in Ethical Decision Making and
Conflict Resolution, Mary Thomas Keim and C.
Terry Grant, Issues in Accounting Education,
Nov. 2003, Vol. 18, No. 4, pp. 397-407.)
Auditor and client management debate valuation
of company’s goodwill. Case study. (A & B
Companies: Impairment of Goodwill, Veronique
G. Frucot, Leland G. Jordan and Marc I. Lebow,
Issues in Accounting Education, Aug. 2004, Vol.
19, Issue 3, p 369, 8 pages.)
Audit clients (SEC companies and non-SEC
companies) do not perceive that national CPA
firms offer sufficient audit quality to warrant an
audit engagement fee premium. (Self-Selection
of Auditors and Audit Pricing in Private Firms,
Paul K. Chaney, Debra C. Jeter and Lakshmanan
Shivakumar, Accounting Review (2004), Vol. 79,
pp. 51-72.)
Auditors consider proper valuation of inventory
(lower of cost or market concept). Roles of
company board of directors and company audit
committee. Case study. (Dynamic Data:
Corporate Governance and Auditors’ Evaluation
of Accounting Estimates, Jeffrey R. Cohen,
Ganesh Krishnamoorthy and Arnold M. Wright,
Issues in Accounting Education, Feb. 2005, Vol.
20, Issue 1, p. 119, 10 pages.)
Audit Committee to discuss corporate books with
company management and auditor
independence issues with external auditor. (New
Rules for Audit Committees, Stephen Barlas,
Editor, Government Column, Strategic Finance,
Dec. 1999, p. 19 and 75.)
Auditors make ethical decisions in line with
federal and state accountancy law and
regulations. (Institutional Context and Auditors’
Moral Reasoning: A Canada-U.S. Comparison,
Linda Thorne, Dawn W. Massey and Michel
Magnan, Journal of Business Ethics (2003), Vol.
43, pp. 305-321.)
Audit engagement managers and staff in today’s
CPA firms have adequate time budgets to
perform quality audits. (No Need to Compromise:
Evidence of Public Accounting’s Changing
Culture Regarding Budgetary Performance,
Steve Buchheit, William R. Pasewark, Jr. and
Jerry R. Strawser, Journal of Business Ethics
(2003), Vol. 42, pp. 151-163.)
Auditors make ethical decisions when they
observe accounting profession rules.
Consideration of overriding principles is
unimportant in determining the quality of auditors’
ethical decisions. (The Importance of Context in
Investigating Auditors’ Moral Abilities, Dawn W.
Massey, Research on Accounting Ethics (2002),
Vol. 8, pp. 195-247.)
Audit failures occur when auditors make
unethical decisions (decide to ignore professional
standards and professional ethics rules). Greed,
1
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Copyright © 2007 by Thomas Chenoweth
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Auditing
Auditors must be forthright in issuing goingconcern audit opinions to protect investors and
the accounting profession’s credibility. (On
Serving the Public’s Expectations: The Ethical
Implications of SAS 59 Going-Concern Report
Modifications, Marshall Greiger, K. Raghunandan
and D.V. Rama, Research on Accounting Ethics
(1996), Vol. 2, pp. 265-279.)
Big 4 accounting firms provide high quality audits
in the U.S. in order to minimize litigation rather
than protect their brand names. (Litigation Risk
and the Financial Reporting Credibility of Big 4
versus Non-Big 4 Audits: Evidence from AngloAmerican Countries, Inder K. Khurana and K.K.
Raman, Accounting Review (2004), Vol. 79, No.
2, pp. 473-495.)
Auditors must be objective, have integrity and
exercise professional competence to restore
public confidence in the accounting profession.
(A Proposed Framework Emphasizing Auditor
Reliability Over Auditor Independence, Mark H.
Taylor, F. Todd DeZoort, Edward Munn, and
Martha Wetterhall Thomas, Accounting Horizons
(2003), Vol. 17. Issue 3, p. 257.)
Both improved self-regulation of the accounting
profession and better education of the public
regarding appropriate expectations of auditors:
can lessen the need for outside regulation of the
accounting profession. (The Litigation Crisis:
Auditor Responsibility to the Public, Bonita A.
Daly and James R. Hamill, Research on
Accounting Ethics (1996), Vol. 2, pp. 87-107.)
Auditors must make ethical decisions despite
client pressures. (Accounting Ethics: The Search
for Truth in an Age of Moral Relativism, C.
Richard Baker, Research on Accounting Ethics
(1996), Vol. 2, pp. 73-86.)
Client bargaining power reduces audit quality.
(Mandatory Audit Firm Turnover, Financial
Reporting Quality, and Client Bargaining Power:
The Case of Arthur Andersen, Albert L. Nagy,
Accounting Horizons, June 2005, Vol. 19, Issue
2, p. 51, 18 pages.)
Auditors must observe GAAP and professional
ethics rules; auditors serve the public by helping
investors determine where to invest for higher
returns on investment. Auditing is not a game.
(Some Ethical Issues about Financial Reporting
and Public Accounting and Some Proposals, J.
Edward Ketz and Paul B.W. Miller, Research on
Accounting Ethics (1997), Vol. 3, pp. 49-77.)
Client Continuance. Case study looks at audit
partner evaluation of client continuance decisionmaking re: risk management and auditor
independence. (Decision Making in a Public
Accounting Firm: An Instructional Case in Risk
Evaluation, Client Continuance, and Auditor
Independence within the Context of the
Sarbanes-Oxley Act of 2002, Ambrose Jones III
and Carolyn Strand Norman, Issues in
Accounting Education (Nov. 2006) Vol. 21, Issue
4, p. 431, 17 pages.)
Auditors should be responsible for making ethical
decisions with the aid of expert systems software.
(Ethical Issues in Expert Systems: Lessons from
Moral Philosophy, Jesse F. Dillard and Kristi
Yuthas, Research on Accounting Ethics (1997),
Vol. 3, pp. 99-117.)
Companies improved their disclosure of
Superfund environmental costs in financial
statements in response to SEC enforcement of
required disclosure. (Political Pressure and
Environmental Disclosure: The Case of EPA and
the Superfund, Martin Freedman and A.J.
Stagliano, Research on Accounting Ethics
(1998), Vol. 4, pp. 211-224.)
Auditors use less of their analytical capabilities
when they rely on audit-based expert computer
software. (Comments on “Toward An
Understanding of the Philosophical Foundations
for Ethical Development of Audit Expert
Systems,” Jagdish S. Gangolly, Research on
Accounting Ethics (1995), Vol. 1, pp. 75-81.)
Companies that employ experienced,
credentialed chief financial officers (e.g., CPA,
CMA and MBA) have fewer instances of restated
financial statements. (The Financial Expertise of
CFOs and Accounting Restatements, Jagadison
K. Aier, Joseph Comprix, Matthew T. Gunlock,
and Deanna Lee, Accounting Horizons, Sep.
2005, Vol. 19, Issue 3, p. 123, 13 pages.)
Auditors, who share their knowledge in the
development of expert software systems, should
be fairly compensated. (Toward a Philosophical
Foundation for Ethical Development of Audit
Expert Systems: A Contractarian Approach,
Thomas D. Arnold, Vicky Arnold and Steve G.
Sutton, Research on Accounting Ethics (1997),
Vol. 3, pp. 211-232.)
2
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Annotated Bibliography
Copyright © 2007 by Thomas Chenoweth
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Auditing
Company executives change (for their profit
advantage) the stock option date from the date
approved in the corporate minutes of the
company board of directors. Four scenarios.
(Illegal Stock Options Timing: It’s Your Move,
SEC, Rivkah Lewin, Strategic Finance, Feb.
2007, Vol. 88, Issue 8, p. 57, 4 pages.)
CPA firms may have made unethical decisions to
issue unqualified audit reports to audit clients to
avoid jeopardizing management consulting fees
from the same audit clients. Pre-SOX article.
(Discipline with Common Agency: The Case of
Audit and Nonaudit Services, Laura J. Kornish
and Carolyn B. Levine, Accounting Review
(2004), Vol. 79, No. 1, pp. 173-200.)
Concurring audit partner exhibits fresh,
professional skepticism re: client audit
engagement when the partner is new to the
engagement compared to a partner who was the
concurring audit partner in the immediate prior
year(s). (The Impact of Continuity on Concurring
Partner Reviews: An Exploratory Study, Michael
Favere-Marchesi and Craig E.N. Emby,
Accounting Horizons, Mar. 2005, Vol. 19, Issue 1,
p. 1, 10 pages.)
CPA firms must advise a company’s audit
committee or board of directors regarding the
CPA firms’ independence of the audit client.
SEC-AICPA independence proposal by ISB.
(Management Accounting Practices, Terri Funk,
Editor, Management Accounting, Sep. 1998, pp.
58-59.)
CPA firms should employ partners, managers,
seniors, and staff who have high ethical
reasoning skills to protect CPA firms from future
audit failures. (Does Selection-Socialization Help
to Explain Accountants’ Weak Ethical
Reasoning?, Mohammad J. Abdolmohammadi,
William J. Read and D. Paul Scarbrough, Journal
of Business Ethics (2003), Vol. 42, pp. 71-81.)
Count cash with a witness present to avoid the
appearance of misappropriating cash. (In No One
We Trust, Anonymous, Internal Auditor, Apr.
2004, Vol. 61, Issue 2, page 86, 2 pages.)
CPA firm rotation improves the appearance of
independence on audit engagements and
reduces the potential for lawsuits (perceptions of
trial judges). (Marianne Moody Jennings, Kurt J.
Pany and Philip M.J. Reckers, Accounting
Horizons, Sep. 2006, Vol. 20, Issue 3, pp. 253270.)
CPA firms should use different engagement
teams to perform audits and internal audits for
nonpublic clients. (State Accountancy Regulators’
Perceptions of Independence of External
Auditors When Performing Internal Audit
Activities for Nonpublic Clients, Cecil L. Hill and
Quinton Booker, Accounting Horizons, Mar.
2007, Vol. 21, Issue 1, pp. 43-57.)
CPA firms consider how to balance using
inexperienced staff with quality audits and
unethical tax clients with growing a profitable tax
practice. (Beyond Bean Counting: Establishing
High Ethical Standards in the Public Accounting
Profession, Jeffrey R. Cohen and Laurie W. Pant,
Journal of Business Ethics (1991), Vol. 10, pp.
45-56.)
CPA firms try to maximize efficiency by using
experienced auditors (reviewers) in the field that
require less follow-up audit work or by using less
experienced auditors in the field that require
more follow-up audit work. CPA firms use
experienced audit engagement reviewers in both
scenarios to ensure audit quality. (Reviewers’
Responses to Expectations about the Client and
the Preparer, Jay S. Rich, Accounting Review
(2004), Vol. 79, No. 2, pp. 497-517.)
CPA firms determine the extent that auditors use
audit-based, expert computer software in audit
engagements. (On the Ethical Behavior in Social,
Political and Legal Environments, Vicky Arnold,
Thomas D. Arnold and Steve G. Sutton,
Research on Accounting Ethics (1995), Vol. 1,
pp. 91-96.)
CPA firms, especially the Big 4, exhibit higher
standards for client acceptance and client
retention after SOX. (Resignations by Big 4 and
the Market for Audit Services, Dasaratha V.
Rama and William J. Read, Accounting Horizons,
June 2006, Vol. 20, Issue 2, p. 97, 13 pages.)
CPA firms hurt themselves in terms of audit
quality (ignore material misstatements) and
revenue (CPA firm additional revenue) when they
have an unwritten policy that audit engagement
staff should underreport actual time spent on an
audit engagement (under budget). (Aspects of
Underreporting Audit Time, Timothy J. Louwers
and Jerry R. Strawser, Research on Accounting
Ethics (2000), Vol. 7, pp. 19-44.)
3
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Auditing
Issues in Accounting Education, Feb. 2005, Vol.
20, Issue. 1, p. 81, 17 pages.)
CPA firms, that segment their audit clients by
industry, provide high audit quality because the
CPA firms’ audit teams have specialized industry
knowledge. (The Effects of Industry
Specialization on Audit Risk Assessments and
Audit-Planning Decisions, Kin-Yew Low,
Accounting Review (2004), Vol. 79, No. 1, pp.
201-219.)
External auditors increase auditing efforts and
audit fees for audit clients that pose high audit
failure risk re: earnings management and
ineffective corporate governance. (Earnings
Manipulation Risk, Corporate Governance Risk,
and Auditors’ Planning and Pricing Decisions,
Jean C. Bedard and Karla M. Johnstone,
Accounting Review (2004), Vol. 79, No. 2, pp.
277-304.)
CPAs acknowledge impairment of auditor
independence on audit engagements. (Auditor
Independence Deficiencies & Alleged Audit
Failures, Michael A. Pearson, Journal of
Business Ethics (1987), Vol. 6, pp. 281-287.)
External auditors must have personal integrity, a
value that cannot be legislated. External auditors
should help audit clients adopt ethics programs
re: SOX. (A Fresh Look at Accounting Ethics (or
Dr. Smith Goes to Washington), L. Murphy Smith,
Accounting Horizons, Mar. 2003, Vol. 17, Issue 1,
pp. 47-49.)
CPAs firms should encourage audit team
members to share expertise to improve efficacy
of audit engagements. (Enhancing Knowledge
Sharing in Public Accounting Firms, Sandra C.
Ver-Munoz, Joanna L. Ho and Chee W. Chow,
Accounting Horizons, June 2006, Vol. 20, Issue
2, p. 133, 23 pages.)
External auditors must treat each annual audit
engagement of the same audit client as a new
audit engagement. Auditors should expect that
an audit client can have a down year, especially
when audit evidence confirms this fact, even
though the audit client has a long history of
robust financial statements. (Ethical Leadership
and the Psychology of Decision Making, David M.
Messick and Max H. Bazerman, Sloan
Management Review, Winter 1996, Vol. 37, No.
9, pp. 9-22.)
CPAs may make unethical decisions on audit
engagements (be more flexible on GAAP to
attract new audit clients) if they have the legal
right to solicit clients. (Ethical Obligations of
CPAs in Advertising and Solicitation: Public
Interest Considerations, Kathy S. Moffeit, Steven
M. Mintz and Ruth Lesher Taylor, Research on
Accounting Ethics (1996), Vol. 2, pp. 131-157.)
CPAs should know their professional limitations
and refer clients to CPA firms that have
appropriate levels of competence. (International
Textile, Inc., Mahmoud M. Nourayi and Steven M.
Mintz, Research on Accounting Ethics (2002),
Vol. 8, pp. 251-261.)
Financial restatements can be the outcome of
errors. (Financial Restatements: Causes,
Consequences and Corrections, Erik Linn and
Kori Diehl, Strategic Finance, Sep. 2005, Vol. 87,
Issue 3, p. 34, 6 pages.)
Earnings management case study for auditors.
(Garbage In, Garbage Out Waste Disposal
Incorporated: An Audit Case, Srinivasan C.
Ragothaman, William Wilcox and Thomas L.
Davies, Issues in Accounting Education, Aug.
2003, Vol. 18, No. 3, pp. 307-316.)
Financial statement analysis is used to identify
the possible existence of earnings management
in company financial statements. (Detecting
Earnings Management, First Edition, Gary
Giroux, Hoboken NJ: John Wiley & Sons, Inc.,
2004, reviewed by Kevin J. Den Adel, Issues in
Accounting Education, Feb. 2005, Vol. 20, Issue
1, p. 130, 2 pages.)
Educating the public about auditor independence
may help the public dispel the perception that
auditors are not independent of their audit clients.
(Enhancing Perceptions of Auditor
Independence, Michael A. Pearson, Journal of
Business Ethics (1985), Vol. 4, pp. 53-56.)
Going concern audit reports issued by Big 4
accounting firms are more reliable those issued
by national, regional or local CPA firms. (Audit
Firm Size and Going-Concern Reporting
Accuracy, Marshall A. Geiger and Dasaratha V.
Rama, Accounting Horizons, Mar. 2006, Vol. 20,
Issue 1, p. 1, 17 pages.)
Equal funding of college sports programs using
allocations of indirect costs to men’s and
women’s sports. Case study. (Compliance with
Title IX at Kingston State University: A Case
Study on Cost Allocation and Ethical Decision
Making, John T. Reisch and Larry P. Seese,
4
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Annotated Bibliography
Copyright © 2007 by Thomas Chenoweth
(239) 671-2314
Auditing
High professional fees and management
consulting services decreased auditor perception
of independence. (The Loss of Auditor
Independence: Perceptions of Staff Auditors,
Audit Seniors and Audit Managers, Terry J. Engle
and Terry L. Sincich, Research on Accounting
Ethics (1998), Vol. 4, pp. 167-184.)
Research on Accounting Ethics (1996), Vol. 2,
pp. 1-20.)
Off-balance sheet reporting needs definitive rules
to improve quality and quantity of disclosures.
(Enron-Era Disclosure of Off-Balance-Sheet
Entities, Uday Chandra, Michael L. Ettredge and
Mary S. Stone, Accounting Horizons, Sep. 2006,
Vol. 20, Issue 3, pp. 231-252.)
History of accounting failures that begs for
increased regulation of the accounting
profession, particularly audit engagement quality.
(Accounting Quality, Auditing and Corporate
Governance, Eugene A. Imhoff, Jr., Accounting
Horizons (2003), Vol. 17, p. 117.)
PCAOB increases public confidence in the
accounting profession. (The PCAOB and the
Social Responsibility of the Independent Auditor,
Douglas R. Carmichael, Accounting Horizons,
June 2004, Vol. 18, Issue 2, p. 127, 7 pages.)
Internal control weaknesses: examples in
financial reporting. (The Disclosure of Material
Weaknesses in Internal Control after the
Sarbanes-Oxley Act, Weili Ge and Sarah McVay,
Accounting Horizons, Sep. 2005, Vol. 19, Issue
3, p. 137, 22 pages.)
Pressures from inside CPA firms have a greater
affect on perceived auditor independence than
pressures from audit clients. (Auditor
Independence: Five Scenarios Involving Potential
Conflicts of Interest, Roger W. Bartlett, Research
on Accounting Ethics (1997), Vol. 3, pp. 245277.)
Lawsuits are filed against CPA firms depending
upon the persuasiveness of existing evidence of
audit failure, regardless of whether the audit
failure was attributed to management fraud or
auditor incompetence. (To Sue or Not to Sue: An
Experimental Study of Factors Affecting Hong
Kong Liquidators Audit Litigation Decisions,
Michael J. Ferguson and Abdul Majid, Journal of
Business Ethics (2003), Vol. 46, pp. 363-374.)
Quality of management’s financial reporting does
not necessarily increase with the length of
employment of the same audit engagement
partner. (Audit Partner Tenure and Audit Quality,
Peter Carey and Roger Simnett, Accounting
Review (May 2006) Vol. 81, Issue 3, pp. 653676.)
Management consulting services jeopardize CPA
firm independence. (A Circle of Influence: Are All
the Stakeholders Included?, Mary D. Maury,
Journal of Business Ethics (2000), Vol. 23, pp.
117-121.)
Recording cash revenue in restaurant industry.
Case study. (Internal Control Evaluation of a
Restaurant: A Teaching Case, Jack E. Kiger and
Anna M. Rose, Issues in Accounting Education,
May 2004, Vol. 19, Issue 2, p. 229, 9 pages.)
Management is more conservative after SOX:
more conservative use of discretionary accruals,
faster reporting of losses, and slower reporting of
gains. (Did Conservatism in Financial Reporting
Increase after the Sarbanes-Oxley Act?: Initial
Evidence, Gerald J. Lobo and Jian Zhou,
Accounting Horizons, Mar. 2006, Vol. 20, Issue 1,
p. 57, 17 pages.)
Sarbanes-Oxley increased management
accountability on internal control systems does
not necessarily decrease the occurrence of fraud.
Sarbanes-Oxley does not guarantee an improved
quality of the auditor’s control testing. SarbanesOxley could increase the level of audit risk. (The
Effects of Sarbanes-Oxley on Auditing and
Internal Control Strength, Evelyn R. Patterson
and J. Reed Smith, Accounting Review (Mar.
2007) Vol. 82 Issue 2, pp. 427-455.)
Management makes decisions to put a positive
spin on company financial statements. Case
study. (Reporting Earnings at Summer
Technology: A Capstone Case Involving
Intermediate Accounting Topics, Mark Kohlbeck,
Issues in Accounting Education, May 2005, Vol.
20, Issue 2, p. 195, 8 pages.)
SEC Office of Compliance and Inspections
shares compliance issues:
www.sec.gov/about/offices/ocie/complialert.htm.
Compliance Alert letters. (SEC Issues
Compliance Alert, Stephen Barlas, Jean-Victor
Cote, Paul L. Shillam, Lance A. Thompson, and
Kathy Williams, Strategic Finance, July 2007,
Vol. 89, Issue 1, p. 19, 1 page.)
Nonaudit services to audit clients do not
necessarily impair auditor independence. (Should
Auditors Provide Nonaudit Services to Their Audit
Clients?, Ronald A. Davidson and Craig Emby,
5
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Copyright © 2007 by Thomas Chenoweth
(239) 671-2314
Auditing
Some companies openly display in their financial
reports a stronger commitment to corporate
social responsibility than other companies do.
(Annual Reports as a Medium for Voluntarily
Signaling and Justifying Corporate Social
Responsibility Activities, Moses L. Pava and
Joshua Krausz, Research on Accounting Ethics
(1998), Vol. 4, pp. 1-27.)
Arnold and Thomas D. Arnold, Research on
Accounting Ethics (1999), Vol. 5, pp. 21-36.)
Use of expert systems software in audit
engagements lessens the auditor’s responsibility
to exercise professional judgment. (Technology
and Personal Accountability, Roger W. Bartlett,
Research on Accounting Ethics (1999), Vol. 5,
pp. 37-49.)
SOX requires company CEOs and CFOs to
certify the accuracy and completeness of
company financial statements. (CEO and CFO
Certifications of Financial Information, Marshall
A. Geiger and Porcher L. Taylor, III, Accounting
Horizons, Dec. 2003, Vol. 17, Issue 4, p. 357.)
Users of company financial statements are not
receiving the amount of social responsibility
disclosures they expect. (Corporate Social
Responsibility in Accounting: A Review and
Extension, Bernadette M. Ruf, Krishnamurty
Muralidhar and Karen Paul, Research on
Accounting Ethics (1998), Vol. 4, pp. 185-200.)
Strategic planners should facilitate the strategic
planning process but not be involved in
management discussions and conclusions. (The
Fall and Rise of Strategic Planning, Henry
Mintzberg, Harvard Business Review, Jan.-Feb.
1994, pp. 107-114.)Corporate Governance—
Audit clients must have effective corporate
governance in order to ensure better financial
reporting. (“Mission Impossible?”, Jeffrey R.
Cohen, Management Accounting, Ethics Column,
Jan. 1997, p. 14.)
Virtue has a positive affect on the quality of
auditor ethical decisions. (The Role of Virtue in
Auditors’ Ethical Decision-Making: An Integration
of Cognitive-Developmental and Virtue-Ethics
Perspectives, Linda Thorne, Research on
Accounting Ethics (1998), Vol. 4, pp. 291-308.)
WorldCom case study from the perspective of the
company’s audit committee, external auditors,
internal auditors, and the lack of company
internal controls. (Behind Closed Doors at
WorldCom: 2001, Kay E. Zekany, Lucas W.
Braun and Zachary T. Warder, Issues in
Accounting Education, Feb. 2004, Vol. 19, No. 1,
pp. 101-117.)
Use of audit-based, expert computer software is
one element of the audit program and does not
diminish the analytical capabilities of auditors.
(Further Toward an Understanding of the
Philosophical Foundations for Ethical
Development of Audit Expert Systems, Jesse F.
Dillard, Research on Accounting Ethics (1995),
Vol. 1, pp. 83-89.)
Use of audit-based, expert computer software to
analyze audit client data. (Toward an
Understanding of the Philosophical Foundations
for Ethical Development of Audit Expert Systems,
Steve G. Sutton, Vicky Arnold and Thomas D.
Arnold, Research on Accounting Ethics (1995),
Vol. 1, pp. 61-74.)
Use of decision making computer software used
in audit engagements to assess information
systems. (A Responsibility-Based Approach to
System Development for Professional Services
Firms, Kristi Yuthas and Jesse F. Dillard,
Research on Accounting Ethics (2002), Vol. 8,
pp. 37-58.)
Use of expert systems software in audit
engagements impacts the auditor’s role in
making ethical decisions. (An Integrative
Framework for Analysis of the Ethical Issues
Surrounding Information Technology Integration
by the Audit Profession, Steve G. Sutton, Vicky
6