The role of auditing firms in building professional ethics

Abstract

Audit quality depends on auditors’ ability to detect errors and their willingness to report them, as emphasized by DeAngelo (1981). Through a literature review, this study presents multidimensional perspectives on professional ethics by synthesizing previous theoretical and empirical studies. The findings indicate that auditors’ professional ethics are shaped by various factors and stakeholders, with audit firms playing a fundamental role in fostering and developing ethical standards. As professional ethics represent a critical determinant of audit quality, the study offers implications for audit firms in maintaining and strengthening auditors’ ethical conduct.