Another Ingredient Contributing to Recent Audit Failures: A Study Providing Insights on Management Integrity
Integrity is evidenced through behavior. It is evidenced by actions an individual's consistent observation of a code of conduct based upon a coherent set of moral (ethical) or artistic values. It suggests such a high level of trustworthiness that it is difficult to conceive of a person being false to a trust. In an audit, beginning with evaluating of the reliability of a client's accounting control systems, the auditor relies heavily on the perceived integrity of management. Thus management integrity has the potential to significantly influence the nature and scope of the independent audit. Decision-making is influenced by personal beliefs and attitudes, which in turn are controlled by the more basic, more enduring structure of the personal values. The influence of personal values extends to management decision-making. This paper is based on a research instrument developed by England to measure the structure of the personal value systems (PVS) of corporate managers. Results indicate which of 66 pre-tested personal values influence corporate decision-making, the twenty-nine "Operative Values" and which values do not. Trust and Honor, the personal values of interest, are not among the behavior influencing Operative Values. They are classified among the few "Primarily Ethical Values." Substantial differences in the role of Trust and Honor in relation to two PVS dimensions, Importance and Success, may significantly influence the integrity of management behavior. Understanding this may assist in understanding and addressing changing audits.
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Oliver, Bruce, "Another Ingredient Contributing to Recent Audit Failures: A Study Providing Insights on Management Integrity" (2005). Proceedings of the Northeast Business & Economics Association Conference,Accessed from
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Proceedings from the 2005 Northeast Business and Economic Association (NBEA) Conference, Parsippany, NJ.
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