How unconscious biases impact on auditor independence

Assignment Help Auditing

Reference no: EM131173768 , Length: word count:2000

Question 1.

A Whigarian view of history is often said to encapsulate an inevitable onward and upward process of continual progress where later was always better than earlier and was accompanied by a Panglossian optimism in the belief of human reason to forge a better society where things get better and better through the course of time.

Whig historiography is an approach that presents the past as an inevitable progression towards ever more enlightenment. The term often focuses on the successful chain of theories and experiments that led to present-day science, while ignoring failed theories and dead ends

Discuss in terms of the development of both accounting and auditing.

Question 2.

Moral seduction theory posits that people can become morally compromised over time, a process facilitated by unconscious thought processes. Professionals, for instance, tend to be confident and to view themselves as ethical people in control of their lives. Eventually this behaviour could become the ‘the new normal' for people, am adjustment to their definition of what is ethical. These cognitive distortions help justify questionable behaviour and reconcile it with their self-image as an ethical person.

Boweman, J., & West. J., (2013), Ethics in Public Management, Fredrickson, H & Ghere, K. editors, 2ed, Routledge:London, p.166.
Refer to: Academy of Management Review, 2006, Vol. 31, No. 1, 10-29.

CONFLICTS OF INTEREST AND THE CASE OF AUDITOR INDEPENDENCE: MORAL SEDUCTION AND STRATEGIC ISSUE CYCLING
DON A. MOORE: Carnegie Mellon University
PHILIP E. TETLOCK: University of California, Berkeley LLOYD TANLU: Harvard University
MAX H. BAZERMAN: Harvard University

Discuss the main issues concerning MORAL SEDUCTION AND STRATEGIC ISSUE CYCLING

Question 3.

a) Explain how unconscious biases impact on auditor Independence?

b) Explain the context surrounding the ‘ironic rebound effect'

Reference no: EM131173768

Questions Cloud

Probability that your portfolio will lose money during year : Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are shown in the file P16_38.xlsx. The correlations between the annual returns on the four stocks are also..

Graph three first-derivative finite difference approximation : Graph all three first-derivative finite difference approximations along with the theoretical, and do the same for the second derivative as well.

How many reservations for the flight should deleast book : On average, 95% of all people who have a reservation show up for the flight. To maximize expected profit, how many reservations for the flight should Deleast book?

How globalization has changed the way american companies : Describe how globalization has changed the way American companies are doing business. How do these strategies affect people in other parts of the world? In what ways do you believe this change has benefited American organizations and their customers?

How unconscious biases impact on auditor independence : Explain how unconscious biases impact on auditor Independence and explain the context surrounding the ‘ironic rebound effect'

Generate binomially distributed random numbers : (Hint: Use the RISKBINOMIAL function. However, if your model requires more RISKBINOMIAL functions than the number allowed in the academic version of @RISK, remember that you can instead use the CRITBINOM function to generate binomially distributed..

Determine the dimensions of the pit that minimize cost : You are asked to design a covered conical pit to store 50 m3 of waste liquid. Assume excavation costs at $100/m3, side lining costs at $50/m2, and cover cost at 25/m2. Determine the dimensions of the pit that minimize cost.

Calculate the internal rate of return for each project : BUACC3701: Financial Management Calculate the Net Present Value for each project and calculate the Internal Rate of Return for each project

Comment on any unusual aspects of the histogram : The file P20_47.xlsx contains the measured diameters (in inches) reported by the prod uction foreman of 500 rods produced by Rodco.

User Account

All Pages