Audit Firm Culture

A societys husbandry has a large impact on the ethical bea recoil of employees and an employees ethical conduct plays an Important role In the fictional character of the posteriorvas. Now, thither argon several factors that uphold the prime(prenominal) of an contri preciselyevas but the bingle that each(prenominal)ow be focused on In this paper Is the effect the examine tighten nuance has on the audit flavour.Audit firm culture effects so m all different things at a firm Including the pleasant of carriage that Is rewarded and determine how Important morals argon In the study. The audit firm culture has the largest daze on the feeling of an audit ND flowerpot either negatively or positively affect the audit out gain. all over the next few pages you volition rent and mark middling why that Is. The kind of leadership that you have wealth a company sets the t adept for the expressive style the company holds Its standards.In a paper prep atomic number 18d fo r Ernst &038 early days it states that, One fundamental driver of audit select, agreed by all winning part in the discussion, was the withdraw for the throng at the pop off of audit firm to set an appropriate t wiz and culture, to check that the constitute was carried out conscientiously, ethically, and in railroad line with all appropriate standards and guidelines. Bender) The prudence postulate to be unvoiced examples to their subordinates of how one should ethically behave and perform a step audit. Management sets the tone and the employees go away turn married suit.If management does non reward or support positive ethical behavior and so neither will the employees. An hold cal take, The Negative Affects of Corporate Culture, (Mack) states that, When managers are unethical, employees will emulate the bad behavior. Employees look to management to show them how they should behave and they will replicate what they bring in, even if it is negative or unethical. If they see managers cutting corners to get wings do faster or to save money, then employees will do the same which back cause the audit to be skimpy or s backt(p)ly done.Managers should make received they are al slipway being fuddled examples of how ein truthone should behave, even when they telephone no one is looking, as they set the bar for how employees should behave. some other(prenominal) big building block in the positive firm culture is moral philosophy training and enforcement. Teaching new employees during their nonbinding extremity the Importance of morality inside the piece of fiddle and instruction them about ethics will attend to foster a legitimate defecate environment. Even though approximately people know unspoilt from ring It Is Important to instill what Is ethically right as come up.An word about ethics training In the oeuvre discusses how having a code of ethics typed out for employees to see helps them to see and understand what ethics are and how Important they are In the workplace. Also, presentation them that there Is on the loose(p) unprejudiced chat and letting them know they send away come to management with concerns will help employees heart empowered to work ethically (Lollipops). The condition in addition states that, The expense of comprehensive ethics trailing carries the potential to to a coarseer extent than soften for itself over the long term.Aside from potentially costly lawsuits, (Lollipops). Teaching ethics will solitary(prenominal) enforce uprighty and integrity, which will at last help groups to perform quality audits. Having untouchable ethics in your workplace can besides allow employees to work with a clear conscience and be more fruitful, which makes for a better quality audit. An article that talks about how ethics makes you a better person in the workplace states that, Ethical employees build trust in their workplace relationshipsGaining the trust of your co-workers can rear your productivity by making it easier for you to herald and work with there in the workplace (Ingram). Having teammates who all trust one a nonher due to strong ethics makes for a more cohesive team allowing them to work more productively together and support them to create a quality audit. some other activity that causes poor firm culture and effects audit quality is hyper competitiveness. In a firm people work together as a team to perform audits, they have to feel agreeable going to colleagues and upper management with misgivings.They need to feel supported by there team and feel the rewards of working as a team. If a company rewards a persons behavior to work towards their own personalized goals to get ahead ether than change to the work of the entire team, employees may come forward cutting corners or doing things unethically to get ahead. As an article by Jarred Lewis states, fiery competition may excessively go in a win at all costs attitude that may even b ring out the conquer in some workers (Lewis). This is not well-grounded for the quality of the audit.We want everyone on the team to be working together towards the same goal, a quality audit. That is the kind of behavior that should be rewarded. Encouraging competition within the audit workplace can also cause individuals or teams to build rivalries against one another. Having any form of rivalry can cause the, win at all costs attitude but it can also cause people to set-back hating their Job or feeling punctuate on the Job. When people are get stressed at work or start disliking their job then comm except their work will start twinge as well.According to an article called, Stress Affects practice Performance of Nearly Half of Employees, it states that, It stress around often leads to difficulty concentrating, absenteeism and poor work quality (Apse, 2013). Having employees that are working on an audit struggle to concentrating and are producing poor work is not in any way going to help with reforming a quality audit, it will do the verso of that, it will hinder the audit. Poor shed light on has another negative effect on audit firm culture, which also affects the quality of an audit.If employees are caught taking short cuts or cutting corners on audits and are not reprimanded or punished for it then it is nevertheless encouraging unethical behavior to continue. If organizations did not have discipline and rules about the way their employees should behave, then quite simply they would be free to do anything they wanted and be able to get away with it targets would not be et, work would not be completed, the workplace would be more akin a zoo than a productive environment (Shipwright). It is important that employees not only understand corporate rules and ethics codes but that they are enforced as well and that those that break the codes are disciplined accordingly. If employees are not disciplined then it will only show employees that behavin g unethically when playacting an audit is k, which would then ruin the quality of the audit. Lack of open communication or employees feeling like they cannot go and talk to corporate culture and conducting a quality audit.According to Gaffing, featured in he effortless Reporter, he states that, The rewards of honest communication in the workplace are not in effect(p) esoteric. Honesty can actually help reduce work-related stress (BROWN, 2005). We already wheel spoke about how beneficial unstressed employees are in the workplace but think about the amount of unethical situations that can be s take inped when employees feel just going to management and discussing such issues. Having open and honest communication in the workplace will help to stop unethical behavior in their tracks, which will also increase the quality of the audit.Arthur Anderson is a great example of how corporate culture can cause a firm to not reform quality audits, which also led to their demise. One of the problems with Arthur Andersens culture was the, Inability to question superiors practices and incapability to suggest new ways of doing things in all areas of the firm (mapped). Just like we were talking about in the previous paragraph, the firm lacked open and honest communication allowing unethical behavior to suppurating sore and flourish. This hindered the firms ability to perform quality audits.They also lacked an ethically strong management to be an example to employees. The root of the problem was top management figures who exemplified poor ethical practices (mapped). clear Arthur Anderson lacked a strong ethical and honest firm culture and it started at the top with its management. This enabled them from being able to perform quality audits, Enron was a shining example of how their audits were unsatisfactory, and to the highest degree definitely lost the publics trust in them. Audit firm culture is very important in performing a quality audit.As small business biography states, Companies with cultures valuing the highest standards create an atmosphere for workers to deliver products that discover those high standards (Cleaner). When it comes to management, Ewing a good example, lay the appropriate tone, and ethical standards expected, is important. From ethics training, to teaching the importance of ethics to employees, along with prudish discipline, and open and honest communication, all of these things are important in creating a strong and positive corporate culture.