Abstract:
The auditor has often been regarded as “the guardian of the market”. However, several scandals in recent times have resulted in an increase in the public’s suspicion of auditor ethics, hence, an investigation of ethical awareness and ethical judgment
among auditors is warranted. The aim of this thesis was to investigate the factors that affect the ethical awareness and ethical judgment of auditors practicing in Lebanon, based on an extensive literature review coupled to deductive and
quantitative research methods. A questionnaire comprising five ethical dilemmas to
test auditor’s ethical sensitivity was provided to practicing auditors in Lebanon and
136 responses were gathered. The proposed hypotheses attempted to examine the influence of the national culture, the size of the audit firm, the gender, age,
education and length of work experience on the ethical sensitivity of auditors. The
results of the survey revealed that the audit firm’s size and the education of the
auditor (university degree and CPA certificate) are the most influential factors that shape an auditor’s ethical sensitivity. Other factors including age, gender, and length of work experience have a trivial effect on auditor’s ethical sensitivity.
