eCite Digital Repository

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]


Preview
PDF
Not available
3Mb
  

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 auditorsí dispositional trust as it may relate to the propensity for an auditorís 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

Repository Staff Only: item control page