Applying signal detection theory to assess the ethical sensitivity of independent auditors | Posted on:1999-03-08 | Degree:Ph.D | Type:Dissertation | University:Kent State University | Candidate:Marshall, Sandra | Full Text:PDF | GTID:1465390014471330 | Subject:Business Administration | Abstract/Summary: | PDF Full Text Request | This study assesses the efficacy of applying signal detection theory (SDT) research and analysis methods to the measurement of ethical sensitivity. It also examines the relationship between Jones' (1991) moral intensity (MI) and ethical sensitivity and extends Karcher's (1996) study of the ethical sensitivity of independent auditors.;One thousand members of the Ohio Society of CPA's, who had indicated an interest in public accounting/auditing, were sent a questionnaire containing two of six scenarios. The six scenarios varied along two dimensions: (1) MI (zero, low, or high) and (2) the presence or absence of the request that was present in Karcher's (1996) study. The response rate was 62%. In accordance with SDT methods, each participant indicated whether an ethical issue was present in each scenario and the degree of confidence in that belief (0%--100%). Signal was first operationally defined as MI (with zero being noise) and then as request (with no request being noise).;In general, the empirical ROC (isosensitivity) curves fit the SDT model. The exceptions to this are those that used the zero-no request scenario as the noise condition. Additionally, when signal was defined as MI, high MI resulted in greater ethical sensitivity than did low MI, thus lending strong empirical support for Jones' (1991) proposition that ethical sensitivity would increase as MI increased. However, when signal was defined as MI, the request appeared to function as noise, with greater ethical sensitivity for the low MI than for high. Likewise, when signal was defined as request, the same occurred: Low MI led to higher sensitivity.;The present study contributes to the literature by providing a method of measuring ethical sensitivity grounded in well-established theory. The results fit SDT theory, in that anything not operationally defined as signal functioned as noise. SDT was successfully applied in the present study and may prove useful in other areas where sensitivity is of interest. | Keywords/Search Tags: | Sensitivity, Ethical, Signal, SDT, Theory, Low MI, Present | PDF Full Text Request | Related items |
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