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Describes the objectives herein as examining auditors’ ethical sensitivity to assess risk of fraud in financial reporting. Gives background literature as the opening section, and this is followed by a section in which the investigation method is described, study results are then discussed, followed by a summary and conclusions. Looks at case studies of bribery scandals, etc. and discusses ethics and auditing. Sums up that ethical scenarios examined herein, perhaps, contain external economies ‐ but not external diseconomies.

Prior studies investigating the relationship between moral reasoning (as measured by the defining issues test, DIT) and political orientation have rendered mixed results. We seek to find an explanation for these mixed results. Using responses from a sample of 284 practicing certified public accountants (CPAs), we find evidence that value preferences underlie both moral reasoning and political orientation. Specifically, we find a statistically significant inverse relationship between moral reasoning and conservatism in univariate tests. However, this relationship is no longer significant when eight individual value preferences and gender are taken into account. These results suggest that variations in moral reasoning scores of CPAs are accounted for by their value preferences, which also underlie their relative conservatism.

In this study 43 auditors of varying rank (staff/assistant, senior/supervisors, and managers/partners) and expertise level (candidates for specialty, competent specialists, and expert specialists) assessed the degree to which they believed themselves and their colleagues possessed detailed expert attributes. Definitions of 11 attributes that were found by Abdolmohammadi, Searfoss, and Shanteau (2004) to be extremely or very important to expertise in audit specialty were provided to the subjects for their assessment. As hypothesized, the possession of many attributes that can be classified as trainable and developable differed by professional rank. However, innate attributes of intelligence and quick thinker did not differ by professional rank. Also, as hypothesized, systematic biases in assessment of possession of attributes of superiors and subordinates were observed, as well as evidence of inflated bias of self by some participants. Implications for accounting practice, education, and research are discussed.

We use data from a survey of 215 experienced practicing accountants to provide their level of agreement with various content categories of accounting ethics courses. Our results indicate that top choices of content include current ethical issues, professional codes of conduct, ethical judgment and decision-making processes and models, corporate codes of ethics, whistleblower protection, record retention, and theories of ethics. The respondents also somewhat agreed that ethics courses can influence attitudes and behavior, but they were neutral on whether ethics courses can reduce instances of Enron-like fraud. We discuss the implications of these results for accounting education and research.

The purpose of this paper is to investigate several variables that are theoretically associated with the internal audit function (IAF) having an active role in corporate governance.

The paper uses responses from 782 US Chief Audit Executives (CAEs) in the CBOK (2006) database for the investigation. The paper makes the assumption that an IAF has only one CAE, thus the dataset represents 782 US IAFs.

It is found that an IAF having an active role in corporate governance is significantly and positively associated with the use of a risk‐based audit plan, existence of a quality assurance and improvement program, and audit committee input to the audit plan. Control variables such as stock exchange listing, firm size, the existence of an internal control framework, and a CAE with an internal auditing qualification also are positively associated with the IAF having an active role in corporate governance.

A limitation of this study is that CAE perceptions may deviate from actual practice. Also, the sample is limited to the US CAEs who are also IIA members, thus it may not reflect the views of non‐members and the CAEs from other countries.

The results have implications for CAEs who wish to increase the chance for their IAFs to play an active role in corporate governance. The IIA may benefit from these results in its supporting role for the internal auditing profession.

The study is complementary to the literature on the existence and size of the IAF and reveals several avenues for further research.

Prior studies have identified several factors associated with economic growth including a country's: legal system, banking system, stock markets, and accounting standards. This research examines cross‐country differences in accounting and auditing to assess their role in a country's economic development. We investigate the effects of the per capita number of practicing accountants, auditors, and tax preparers on economic wealth per capita. In addition, we investigate whether economic wealth results from the source of accounting standard setting (i.e., government, private sector or both). Finally, we investigate whether the professionalism of a country's internal audit activity, as measured by its ability to achieve the status of a chapter in the Institute of Internal Auditors (HA) relates to economic growth. The dependent variable for all tests, per capita GNP, was regressed on these variables to determine the type and strength of association between them. The results indicate that on average, countries with larger per capita numbers of accountants and auditors, and number of chapters of the IIAhad greater wealth per capita than those with smaller per capita number of accountants and auditors and number of chapters of the IIA. Also, countries that had input from both the private and public sectors in setting standards had higher per capita wealth.

The 2006 global common body of knowledge (CBOK) study is part of an ongoing research program that will broaden the understanding of how internal auditing is practised throughout the world. At the core of the 2006 CBOK study are three surveys of internal auditors worldwide regarding their professional activities. This paper reviews past CBOK studies and introduces the 2006 CBOK research project.

The findings of prior CBOK studies are reviewed, and additional topics are identified to develop the topical areas to be covered in CBOK 2006.

Past CBOK studies covered many of the same topical areas. Recent changes in The Institute of Internal Auditors Professional Standards, introduction of new technology, and the expanding complexity of business operations require new knowledge and skills for internal auditors. CBOK 2006 will be designed to address these issues.

By presenting an overview of past CBOK studies and discussing the rationale for the 2006 CBOK study, the researchers hope to motivate future research and to encourage internal auditors to participate in this global study.

Using a sample of 304 Certified Public Accountants (CPAs), this paper investigates gender differences in moral development and personal value preferences of CPAs. We used the Defining Issues Test (DIT) to measure moral development, the Rokeach Value Survey (RVS) (Rokeach, 1973) to determine value preferences, and the Musser and Orke (1992) typology to determine value type preferences. The typology analysis indicates that all CPAs in our sample prefer personal values to social values. From an overall ethical predisposition standpoint, males and females are more alike than different; yet, there were a few notable differences. Specifically, males prefer competence values and females have higher preference for moral values. For example, while male CPAs exhibit higher priorities for the competence values of imaginative and logical, female CPAs exhibit higher priority for the moral value of loving. We also find a gender effect for moral development, where female CPAs significantly outscore their male counterparts.

To present the results of a survey of internal auditors worldwide to determine the scope of the topics to be included in The IIA's Global Common Body of Knowledge Study (CBOK) 2006.

The researchers developed a prescope questionnaire and surveyed a small sample of experienced internal auditors worldwide. All three CBOK 2006 teams (Americas, Asia Pacific and Europe/Africa) participated in data gathering from internal auditors in their regions. The questionnaire contained topics that were adapted from The IIA Practice Standards, past CBOKs ands other relevant prior research. The questionnaire also provided space for inclusion of “Other” topics by respondents.

The respondents agreed with the inclusion of a majority of the topics listed in the prescope questionnaire in the global CBOK 2006 survey. Many “Other” topical areas were also suggested for inclusion.

The survey results are providing invaluable information to the researchers in their efforts to develop the questionnaire for global CBOK 2006.