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Different pathways that suggest whether auditors' going concern opinions are ethically based

Rodgers, Waymond; Guiral, Andrés; Gonzalo, José A.


Andrés Guiral

José A. Gonzalo


Several critics have reopened the continuing debate regarding the credibility of the auditing profession in part because of auditors' reluctance to issue warning signals to investors. At the root of auditors' lack of independence issues are conflicts of interest resulting from the structural features of auditor-client relationship. The Throughput Model (TP) is advanced to illustrate how ethical issues may be influenced by conflicts of interest. In the first stage, the TP provides an isolation of auditors' ethical positions from six ethical different perspectives. In the second stage, previous TP theory is built upon by arguing a simultaneous analysis of how conflicts of interests may induce auditors' behavior. We conclude that in the current low litigation risk environment, auditors' ethical behavior (both conscious and unconscious) is clearly 'unbalanced' favoring the reluctance to issue warning signals. Finally, we offer a discussion of potential solutions to improve ethical issues. © 2008 Springer Science+Business Media B.V.


Rodgers, W., Guiral, A., & Gonzalo, J. A. (2009). Different pathways that suggest whether auditors' going concern opinions are ethically based. Journal of Business Ethics, 86(3), 347-361.

Journal Article Type Article
Online Publication Date Jul 3, 2008
Publication Date 2009-05
Deposit Date Nov 13, 2014
Journal Journal Of Business Ethics
Print ISSN 0167-4544
Electronic ISSN 1573-0697
Publisher Springer Publishing Company
Peer Reviewed Peer Reviewed
Volume 86
Issue 3
Pages 347-361
Keywords Auditing; Conflicts of interest; Decision making; Ethics; Throughput Model; Warning signals
Public URL
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