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How Far External Auditors are Committed to Code of Conduct in Saudi Arabia, and the Ways which Encourage them to Follow Professional Behaviour - Thesis Example

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Statement of the problem: This research intends to examine the commitment of external auditors to the code of conduct in general and the focus of the study will be in Saudi Arabia, identifying ways which encourage them to follow professional behavior, and suggesting some…
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How Far External Auditors are Committed to Code of Conduct in Saudi Arabia, and the Ways which Encourage them to Follow Professional Behaviour
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How Far External Auditors are Committed to Code of Conduct in Saudi Arabia, and the Ways which Encourage them to Follow Professional Behaviour

Scope of the study: The study will cover a wide area of auditors’ ethics. This research will involve a detailed study of the accounting and external auditing standards of Saudi Arabia. The code of conduct of the country’s accounting standards will also be studied. Study about the external auditor’s commitment to such code of ethics is the major area of study. Finally, this research will suggest a set of important recommendations that might help to improve the professional behaviour of external auditors in Saudi Arabia, and encourage them to commit code of conduct.
World over very few studies were conducted in the field of personal values and accounting ethics. One among such few studies is ‘Effects of personal values on auditors’ ethical decisions.’ The study was mainly conducted among practicing auditors. The study however revealed that personal values and preferences do not influence the ethical decisions in accounting. It explains that other than personal values it is contextual factors that promote unethical behavior in accounting. Another study on ethics and auditing is, ‘Testing the bases of ethical decision-making: a study of the New Zealand auditing profession.’ The study showed that most of the auditors did not avoid a difficult situation. The study also showed that demographic factors like age, gender, job profile, etc. did not influence a person’s ethical behavior in their profession. There was another study that was done to find the relationship between cultural influences on professional judgment and auditor client-conflict resolution. The study was focused on auditing professionals of Australia, China, Malaysia and India. There was clear difference witnessed in the behavior of Australian auditors compared to that of the Asian counterparts. This is a slightly different view than the study, ‘Effects of personal values on auditors’ ethical decisions.’
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