1.Discussion: 250 Words 2 responses (150 words each) 2.Case Study: 250 words (APA Format) 3. Journal Article: 450 Words ((Summary 150 Words and Discussion 300 Words) Discussion topic: How would you

In auditing, the term tone at the top defines the leadership and commitment to adhering to honest and ethical values of a firm’s management and board of directors. The tone at the top as a concept informs on the approach of the corporate leaders in guiding values and the ethical culture of a company (Iwasaki, n.d). A good tone at the top is believed to be an indicator of the capacity of a company to prevent fraud and other ethical malpractices. It is a prerequisite for firm corporate governance and it is considered to infuse the whole organization making the company leadership to have the dual role of crafting codes of conduct and also living by them. An organization sets the tone through policies and codes of ethics besides commitment to engagement of competent workers and a good reward structure that is able to promote solid internal controls as well as effectual governance (Wang, 2015).

There are several factors that determine the tone of an organization. These include how the management communicates, promotes and displays ethics and values (D’Aquila & Bean, 2015). This requires that the upper management leads by example and prescribing sanctions for condoning and engaging in malpractice. It also calls for establishment of a code of ethics. The tone of an organization also depends on how employees are encouraged to report incidences of malpractice. Safe reporting of incidences of unethical behavior by workers assists in regulation of any behavior that is undesirable. Towards this, a company should establish a whistleblower protection policy. The tone also depends of how a company rewards integrity. This makes employees feel acknowledged for displaying good behavior. To set the tone, it depends on how the company has set standard procedures for following up on allegations of misconduct and how effective internal controls are.

References

D’Aquila, J. & Bean, D. (2011). Does A Tone At The Top That Fosters Ethical Decisions Impact Financial Reporting Decisions: An Experimental Analysis. Retrieved from International Business & Economic Journal Volume 2, Number 8.

Iwasaki, J. (n.d). Tone at the top. Retrieved from https://ethicalboardroom.com/tone-at-the-top/

Wang, I. (2015). The Effects of Tone at the Top and Quality of Audit Committee on Internal Auditors’ Internal Control Evaluations. Retrieved from https://www.uts.edu.au/sites/default/files/ADG_Cons2015_Isabel%20Wang.pdf