The Role of Professional Ethics in Strengthening Auditor Independence and Stakeholder Confidence

Posted: Jan 01, 2019

• Emilia Cruz
• Anderson Perry
• Piper Graham

Abstract

This research investigates the complex interplay between professional ethics, auditor independence, and stakeholder confidence through a novel computational ethics framework. Traditional studies in accounting ethics have predominantly relied on survey-based methodologies and theoretical frameworks, often failing to capture the dynamic, multi-dimensional nature of ethical decision-making in auditing contexts. Our study introduces an innovative computational ethics simulation platform that models auditor behavior across 1,200 distinct ethical scenarios, incorporating real-time stakeholder perception tracking and economic pressure variables. The methodology combines elements from behavioral economics, computational ethics, and network theory to create a dynamic system that captures how ethical reinforcement mechanisms influence both auditor decision-making and stakeholder trust formation. Results demonstrate that targeted ethical interventions at critical decision nodes can increase auditor independence by 47