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Effectiveness of code of ethics in Iran

Taghi Chizary, Hajar (2011)
Department of Business Administration
Abstract
Due to the importance of auditors` role in lending credibility to the financial reports, there should be guidelines and laws to assure the users of the fact that auditors are independent. Therefore, the professionals have designed Code of Ethics to be able to harmonize the ethical behavior of auditors and to ensure that auditors react similarly to similar ethical issues.
We are going to test the Iranian auditors in respect of the following code of ethics and the effectiveness of that code in dealing with ethical dilemmas. In this regard we found it apt to apply positivist philosophy as well as deductive and quantitative research method. We test our four hypotheses through five theories including agency theory, profession theory,... (More)
Due to the importance of auditors` role in lending credibility to the financial reports, there should be guidelines and laws to assure the users of the fact that auditors are independent. Therefore, the professionals have designed Code of Ethics to be able to harmonize the ethical behavior of auditors and to ensure that auditors react similarly to similar ethical issues.
We are going to test the Iranian auditors in respect of the following code of ethics and the effectiveness of that code in dealing with ethical dilemmas. In this regard we found it apt to apply positivist philosophy as well as deductive and quantitative research method. We test our four hypotheses through five theories including agency theory, profession theory, institutional theory, legitimacy theory and moral development theory. Our aim was to investigate the auditors` perception regarding the effectiveness of Code of ethics concerning the prohibition of rendering NAS and Mandatory Audit Rotation in case of the existence of possible threats to the independency of the auditor as well as the effect of rules versus principles contained in the Code.
Accordingly empirical result shows that the need for rules and principles in code of ethics can be different in rendering audit and non-audit services to listed and not-listed clients. Accordingly MAR will be effective for auditing listed client; however, prohibition of rendering NAS will be effective in case of all kinds of clients.
Ultimately we come to the fact that the result can be tested through comparison Iran with other countries to see if there are significant differences exist or not. (Less)
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author
Taghi Chizary, Hajar
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Management of enterprises, Iran, rules vs. principle, Code of ethics, MAR, Auditor independence, NAS, Företagsledning, management
language
Swedish
id
2202237
date added to LUP
2011-06-01
date last changed
2012-11-12 11:14:34
@misc{2202237,
  abstract     = {Due to the importance of auditors` role in lending credibility to the financial reports, there should be guidelines and laws to assure the users of the fact that auditors are independent. Therefore, the professionals have designed Code of Ethics to be able to harmonize the ethical behavior of auditors and to ensure that auditors react similarly to similar ethical issues.
We are going to test the Iranian auditors in respect of the following code of ethics and the effectiveness of that code in dealing with ethical dilemmas. In this regard we found it apt to apply positivist philosophy as well as deductive and quantitative research method. We test our four hypotheses through five theories including agency theory, profession theory, institutional theory, legitimacy theory and moral development theory. Our aim was to investigate the auditors` perception regarding the effectiveness of Code of ethics concerning the prohibition of rendering NAS and Mandatory Audit Rotation in case of the existence of possible threats to the independency of the auditor as well as the effect of rules versus principles contained in the Code.
Accordingly empirical result shows that the need for rules and principles in code of ethics can be different in rendering audit and non-audit services to listed and not-listed clients. Accordingly MAR will be effective for auditing listed client; however, prohibition of rendering NAS will be effective in case of all kinds of clients.
Ultimately we come to the fact that the result can be tested through comparison Iran with other countries to see if there are significant differences exist or not.},
  author       = {Taghi Chizary, Hajar},
  keyword      = {Management of enterprises,Iran,rules vs. principle,Code of ethics,MAR,Auditor independence,NAS,Företagsledning,management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Effectiveness of code of ethics in Iran},
  year         = {2011},
}