The Role of Professional Ethics in Enhancing Auditor Judgment and Decision-Making Accuracy

Posted: Mar 16, 1988

• Caleb Ortiz
• Bella Knight
• Noel Harper

Abstract

The auditing profession operates at the intersection of technical expertise and ethical responsibility, where judgment accuracy is paramount for maintaining public trust and financial market integrity. While substantial research has examined cognitive biases and technical factors affecting auditor judgment, the specific mechanisms through which professional ethics influence decision-making accuracy remain inadequately understood. Traditional approaches to auditor ethics have often treated ethical behavior as a compliance issue rather than a cognitive enhancement tool, resulting in fragmented understanding of how ethical frameworks actually improve judgment quality. This research addresses this gap by proposing and testing a comprehensive model that conceptualizes professional ethics as a dynamic cognitive resource that enhances, rather than merely constrains, auditor decision-making. Contemporary auditing environments present increasingly complex judgment scenarios where technical knowledge alone proves insufficient for optimal decision outcomes. The proliferation of complex financial instruments, evolving business models, and heightened regulatory expectations create judgment contexts where ethical reasoning becomes integral to accurate assessment. Previous research has established correlations between ethical orientation and various professional outcomes, but has largely failed to elucidate the causal pathways through which specific ethical competencies translate into improved judgment accuracy.