Date of Award
10-2006
Degree Type
Thesis
Degree Name
Master of Philosophy (MPHIL)
Department
Accountancy
First Advisor
Dr. SHAFER William E.
Second Advisor
Prof. CHAN Koon-hung
Abstract
This study examines the effects of organizational ethical culture, idealism, relativism and guanxi orientation on the ethical decision-making processes of professional auditors in the People’s Republic of China (PRC). It is hypothesized that auditors perceiving a positive organizational ethical culture, possessing higher (lower) degrees of idealism (relativism), and possessing lower degrees of guanxi orientation will make more ethical decisions. The findings of the study indicate that certain aspects of organizational ethical culture had a significant effect on professional auditors’ behavioural intentions, but not on their ethical judgments. Idealism had a marginally significant impact on professional auditors’ behavioral intentions, but not on their ethical judgments. Relativism did not have a significant impact on ethical judgments or behavioral intentions. Guanxi orientation had a significant effect on professional auditors’ behavioural intentions, but not on their ethical judgments. This study also explores the potential effects of demographics on PRC professional auditors’ ethical decision-making processes and the results suggest that CPA firm type (local/regional vs. international) had a significant effect on professional auditors’ behavioural intentions. The overall findings suggest that organizational ethical culture, idealism, guanxi orientation, and CPA firm type play a significant role in PRC professional auditors’ ethical decision-making processes.
Keywords
Organizational Ethical Culture, Idealism, Relativism, Guanxi Orientation
Copyright
The copyright of this thesis is owned by its author. Any reproduction, adaptation, distribution or dissemination of this thesis without express authorization is strictly prohibited.
Recommended Citation
Liu, M. (2006). The ethical decision-making processes of professional auditors in the people's republic of China (Master's thesis, Lingnan University, Hong Kong). Retrieved from http://dx.doi.org/10.14793/acct_etd.9