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Business leaders can boost their audit efficiency by influencing their behaviour,, according to a new study performed with the backing of the AICPA Assurance Research Advisory Group.The language of leadership forms the core of the company's culture and its quality management program. At its heart is the language of leadership and the general corporate culture, which affect the ethical judgments and decisions of auditors. To underline its significance, standards and regulators also rely in the production of firm-level standards and in regular company reviews on the language of the highest public accounting firms.Although the tone at the top is a critical component of quality assurance measures, there are very few studies in literature that really investigate these phenomena and their impact on the accounting environment.
One aspect businesses tend to say is that they respect audit quality or their atmosphere is more about workers and their well-being, for example. And our results show that employees are very sensitive to the actions and whether these actions correspond to the company's messages. For instance , if a company has a policy which emphasizes its employees as the company's most precious asset, and we have heard this a lot from our companies, but finds that they focus on profitability over employee well-being, there would be a disconnect in that case.It can result in less moral integrity for company workers and a propensity to indulge in such quality-threatening activities, because it may compromise audit results. In fact, we agree that workers who have felt engaged in the advancement of their company's culture and mission are naturally inspired to do their best.
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