Analyzing the external auditing and corporate corruption: A case study of family businesses

Abstract

The failure of several large multinational corporations all over the world has resulted in a heightened interest in the development of suitable procedures that can curb the kinds of actions that might lead to the manipulation of financial reporting. According to the findings of the vast majority of studies, sudden failures of businesses can be traced to sudden alterations in the financial statements of those businesses, which are carried out by the administrations of those businesses and in accordance with their whims. This phenomenon is referred to as "corporate corruption." In addition, there were 94 participants who audited businesses as a part of this study, which was measured using a quantitative research approach. The researcher used a straightforward regression analysis to evaluate how well each of the three research hypotheses held up. According to the findings, the first research hypothesis, which stated that "There is a statistically significant relationship between the general standards of external auditing and corporate corruption practices in family businesses," had the highest value, while the second research hypothesis, which stated that "There is a statistically significant relationship between the general standards of external auditing and corporate corruption practices in family businesses," had the lowest value. The findings revealed that the first research hypothesis, which stated that "there is a statistically significant relationship between general standards of external auditing and corporate corruption practices in family businesses," received the highest value. The findings, however, revealed that the general norms of external auditing play the most beneficial role in minimizing instances of corporate corruption practices in family-owned enterprises.