When the Tone at the Top Slips: How Auditors React to Off-the-Clock Misconduct

Summary

This study investigates how auditors respond to allegations of off-the-clock misbehavior by company leadership, specifically examining whether such indiscretions are perceived as signals of poor corporate culture and tone. The researchers focus on the extent, effectiveness, and context of auditors' responses to these allegations, which include personal misconduct such as substance abuse, sexual misadventure, violence, and dishonesty.