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The implications of auditors' dispositional trust and career advancement opportunities for the detection of fraud
Citation
Rose, A and Rose, J and Dibben, MR, The implications of auditors' dispositional trust and career advancement opportunities for the detection of fraud, Journal of Forensic & Investigative Accounting, 2, (3) pp. 141-163. ISSN 1524-5586 (2010) [Refereed Article]
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Copyright Statement
Copyright © 2010, Louisiana State University, Roosevelt University.
Official URL: http://www.bus.lsu.edu/accounting/faculty/lcrumble...
Abstract
This research reports on the results of measurements of professional auditors’ dispositional
trust as it may relate to the propensity for an auditor’s career advancement. Under controlled
conditions, we collected dispositional trust scores from 216 practicing auditors at Big 4
firms. In addition, to develop a more complete picture of trust in the audit profession, we
collected dispositional trust measures from 53 graduate accounting students who planned to
enter the auditing profession upon graduation. The results of the analyses indicate that
auditors in manager and partner positions in audit firms are significantly more trusting than
are auditors at staff and senior levels and auditing students. Given that dispositional trust is a
stable personality trait, there is evidence that the organizational structure of audit firms
promotes the advancement of highly trusting individuals, while forcing out less trusting
auditors. Prior experimental research finds that more trusting auditors are less likely to
detect fraud and errors, and more trusting auditors evaluate audit evidence less thoroughly
than do less trusting auditors. Based on the findings of prior dispositional trust research and
the results of the current study, it appears that the advancement of highly trusting individuals
could result in the promotion of effective client management at the expense of detecting
fraud and other irregularities.
Item Details
| Item Type: | Refereed Article |
|---|---|
| Keywords: | Auditor, Career Advancement, Dispositional Trust. |
| Research Division: | Commerce, Management, Tourism and Services |
| Research Group: | Accounting, Auditing and Accountability |
| Research Field: | Auditing and Accountability |
| Objective Division: | Expanding Knowledge |
| Objective Group: | Expanding Knowledge |
| Objective Field: | Expanding Knowledge in Commerce, Management, Tourism and Services |
| Author: | Dibben, MR (Associate Professor Mark Dibben) |
| ID Code: | 66465 |
| Year Published: | 2010 |
| Deposited By: | Management |
| Deposited On: | 2011-01-27 |
| Last Modified: | 2011-05-24 |
| Downloads: | 8 View Download Statistics |
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