The influence of auditor narcissism and moral disengagement on risk assessments of a narcissistic client CFO

Johnson, Eric N.; Lowe, D. Jordan; Reckers, Philip M.J.

doi:10.1016/j.jaccpubpol.2021.106826

Cited by 18 publications

(7 citation statements)

References 107 publications

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“…There are two main types of narcissism: grandiose and vulnerable. Grandiose narcissism is a key trait characterized by very low empathy, vanity, and high self-love and self-esteem (Johnson et al, 2021 ; O’Reilly III & Doerr, 2020 ). In organizations it reflects a belief to be entitled to own the right to benefits, items, or activities above the scope of these expected by organizational rules and contracts, a tendency to use different exploitative behaviors to create weaknesses in others and enhance own grandiose sense of self (James et al, 2014 ).…”

Section: Is Being Low On Narcissism a Resource For A Successful Leade...mentioning

confidence: 99%

Leading with a cool head and a warm heart: trait-based leadership resources linked to task performance, perceived stress, and work engagement

et al. 2022

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Leaders of today need to achieve well in terms of task performance, perceiving low stress, and having high levels of work engagement. One may ask whether trait-based leadership resource factors can be identified and how such resource factors might relate to task performance, perceived stress, and work engagement. Our aim was to test the hypothesis, derived from Hobfoll’s motivational Conservation of Resources (COR) theory, that there are trait-based leadership resource factors, which are differentially correlated to the leaders’ task performance, perceived stress, and work engagement. Leaders (N = 344) aged from 23 to 65 years (M = 49, SD = 8.6; 58% women) completed an online questionnaire including measures of task performance, perceived stress, work engagement, personality traits, trait emotional intelligence, empathy, performance-related self-esteem, compassionate and rational leadership competence, and coping resources for stress. Using exploratory factor analysis, we identified four trait-based leadership resource factors. With Bonferroni adjustment, and controlling for sex, age, number of years in the current managerial position, self-deceptive enhancement, and impression management, only Rational Mastery was significantly positively correlated with task performance. Rational Mastery, Efficient Coping, and Modesty were negatively correlated with perceived stress, and all factors except Modesty, but including the fourth (Good-Heartedness) were positively correlated with work engagement. Organizations striving for sustainable work conditions should support trait-based leadership, which depends not only on a task-oriented resource such as rational mastery, but also on human-oriented resources such as efficient coping, modesty, and good-heartedness, all of them being differentially related to task performance, perceived stress, and work engagement.

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Section: Is Being Low On Narcissism a Resource For A Successful Leade...mentioning

confidence: 99%

Leading with a cool head and a warm heart: trait-based leadership resources linked to task performance, perceived stress, and work engagement

et al. 2022

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“…The auditor should act professionally, avoid favoritism or influence by others. Overall, all the things highlighted in the FGD has nothing different from what being said by many researchers before, such as Silvoso (1972), Prasanti et al (2019), Mulyadi (2014), Ningrum (2017), Kertarajasa et al (2019, Johnson et al (2021), Bouhawia et al (2015), Annisa & Abdul (2014) and Jelinek (2015).…”

Section: Finding and Discussionmentioning

confidence: 73%

“…Integrity is about morally right (Prasanti et al (2019), Mulyadi (2014) and Ningrum ( 2017)) and abiding with characters that underlie the profession on the practices (Kertarajasa, Marwa & Wahyudi, 2019). Auditors need to understand the rule of maintaining public trust (Johnson et al, 2021), the confidentiality of the clients (Bouhawia et al, 2015;Al-Hussaini et al, 2019), realize the conflict of interest (Prasanti et al, 2019), and differentiate between the error and fraud (Annisa & Abdul, 2014). When there are no guidelines or standards and no rules, and where vision and opinions differ, auditors must uphold integrity to manage the situation independently (Jelinek, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

“…There is increasing pressure from external parties to improve audit quality and enhance the credibility of financial statements (Sutton, 1993;Islam, Jantan, Aldaihani, Rahman, Khan, Shahin, & Alam, 2018) and its continuously being questions. The auditor has gained significant attention to serve their role, especially in the free market system (Johnson, Lowe, & Philip, 2021;Kang, Turi, Bashir, Alam, & Shah, 2021).…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Auditor Integrity to Audit Quality: an Exploratory Studies from the Middle East

Hubais¹,

Kadir²,

Bilal³

et al. 2023

J. Professional Business Review

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Background: The increasing pressure from external parties to improve audit quality and enhance the credibility of financial statements. As corporate financial scandals widely occurred, there are requests for the profession to enhance their quality in the audit. The public continuously talks about the auditor's integrity in performing their tasks, which undisputedly plays a significant role in determining the audit quality. Purpose: This study aims to re-explore the concept of auditor integrity and understand its impact on audit quality. Methodology: Qualitative study approach intended to redescribe auditor integrity from auditors' perspective in the Middle East, particularly in the Sultanate of Oman, using the Focus Group Discussion (FGD). This study chooses six auditors with vast experience and who hold a significant position in the audit firms. Findings: The study revealed that integrity is the critical determinant of audit quality and relates very much to reputation. In this profession, reputation is crucial, and integrity is the best way to uphold a reputation. Social and Practical Implications: Reputation is the most valuable asset, and its loss may affect the profession's viability. From the FGD, the auditors are fully aware of the importance of integrity to uphold the profession's reputation and ease transactions with clients and the public.

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“…Furthermore, research on the following groups of factors that contribute to fraudulent behavior includes the influence of internal people and issuers (including individuals whose internal information has not been discovered by the company), the collusion of issuers and securities firms, the power held by influential individuals within the company, the complex organizational structure of the issuing (one person handling multiple positions), and the failure of the issuer to properly control the information internally; (ii) fraudulent investors (Nguyen, Nguyen, Nguyen, Selvarajan, & Baskaran, 2022). Improved risk-taking management also increases the likelihood of financial fraud (Johnson, Lowe, & Reckers, 2021). Having an independent board of directors that is separate from management is very important for auditors.…”

Section: Implementation Of Good Corporate Governance and Fraudulent F...mentioning

confidence: 99%

Risk Management and other Factors Preventing Fraudulent Financial Reporting by State-Owned Enterprises in Indonesia

Novatiani

Afiah

Sumantri

2022

5002

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This study aims to provide an overview of the effects of risk management and the implementation of good corporate governance (GCG), and the effectiveness of the internal audit function on the prevention of fraudulent financial reporting and its impact on the quality of financial reporting of state-owned enterprises (SOEs) in Indonesia. Questionnaires are used to determine risk management and other factors that influence each other and their impact on the quality of financial reporting. The questionnaire and survey results of 90 state-owned enterprises (BUMN) and 360 respondents. SEM-PLS was used to analyze the data, and the results show that the implementation of GCG, the effectiveness of the internal audit function and risk management have an effect on financial reporting. This is based on the results of research stating that the effectiveness of the internal audit function is able to prevent financial reporting fraud. The professionalism of the internal auditor, who must carry out audits in a correct and professional manner, demonstrates their credibility. This, and audit training, is often not optimal.

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The influence of auditor narcissism and moral disengagement on risk assessments of a narcissistic client CFO

Cited by 18 publications

References 107 publications

Leading with a cool head and a warm heart: trait-based leadership resources linked to task performance, perceived stress, and work engagement

Leading with a cool head and a warm heart: trait-based leadership resources linked to task performance, perceived stress, and work engagement

The Impact of Auditor Integrity to Audit Quality: an Exploratory Studies from the Middle East

Risk Management and other Factors Preventing Fraudulent Financial Reporting by State-Owned Enterprises in Indonesia

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