An Integrative Review of Ethical Decision-Making Dynamics and MORAL Judgments in Accounting: A Rest's Four-Component Model Perspective on Professional Conduct

Authors

  • Seyed AliReza Khezri * Department of Accounting, Qazvin Branch, Isalamic Azad university, Qazvin, Iran. https://orcid.org/0009-0008-4505-9627
  • Mohammad Amin Zakizadeh Department of Accounting, Qazvin Branch, Isalamic Azad university, Qazvin, Iran.

https://doi.org/10.22105/aaa.v3i3.104

Abstract

This integrative review synthesises research on ethical decision-making in accounting through Rest's four-component model of moral sensitivity, judgment, intention, and action. Drawing on a systematic synthesis of fifteen prominent theoretical and empirical frameworks, the study examines how moral idealism, relativism, peer pressure, social responsibility, and moral self-efficacy shape ethical conduct among accountants and auditors. The findings reveal that ethical behaviour emerges from a sequential process where failures can occur at any stage, with peer pressure acting as a powerful yet context-dependent distorting force, and moral self-efficacy serving as the critical link between intention and action. The synthesis identifies a persistent "ethical viewpoint gap" the systemic divergence between formal ethical codes and actual decision-making behaviour which manifests at intra-individual, organisational, socio-technical, and institutional levels. The study provides a refined mapping of antecedents onto Rest's sequential model, offers a context-sensitive item pool for questionnaire development, and presents evidence-based leverage points for ethics training, audit firm policy, educational reform, and regulatory intervention. Methodologically, the integrative review privileges contextualised, interpretive synthesis across diverse research traditions to surface mechanisms and moderators often overlooked by standard survey instruments. While the primary contributions lie in the detailed mapping of ethical decision-making processes, the findings also carry broader implications for institutional accountability and responsible governance. Limitations include the predominance of Western-centric studies and the need for empirical validation of the proposed model in non-Western contexts using stage-sensitive instruments.   

Keywords:

Rest's four-component model, Ethical decision-making, Accounting ethics, Peer pressure, Moral self-efficacy, Ethical viewpoint gap

References

  1. [1] Tiron-Tudor, A., Mierlita, S., & Stefanescu, C. (2026). Stakeholders’ expectations versus standard setters’ outcome about crypto assets accounting: A PLS-SEM analysis. International journal of accounting information systems, 57, 100772. https://doi.org/10.1016/j.accinf.2026.100772
  2. [2] Ni, D., Xiao, Z., & Lim, M. K. (2020). A systematic review of the research trends of machine learning in supply chain management. International journal of machine learning and cybernetics, 11, 1463–1482. https://doi.org/10.1007/s13042-019-01050-0
  3. [3] Jejeniwa, T. O., Mhlongo, N. Z., & Jejeniwa, T. O. (2024). The role of ethical practices in accounting: A review of corporate governance and compliance trends. Finance & accounting research journal, 6(4), 707–720. https://doi.org/10.1108/AAAJ-05-2024-7056
  4. [4] Adaga, E. M., Egieya, Z. E., Ewuga, S. K., Abdul, A. A., & Abrahams, T. O. (2024). A comprehensive review of ethical practices in banking and finance. Finance & accounting research journal, 6(1), 1–20. https://doi.org/10.51594/farj.v6i1.705
  5. [5] Chemonges, A. K. (2024). Long-term effects of ethical abandonment on organisational success. Long-term effects of ethical abandonment on organisational success, 11(1). https://doi.org/10.5281/zenodo.10653687
  6. [6] Garefalakis, A., Despoina, K., Angelaki, E., Papademetriou, C., & Passas, I. (2026). Navigating ESG challenges: The role of chartered accountants in corporate sustainability. Risks, 14(3), 47. https://doi.org/10.3390/risks14030047
  7. [7] P, I., & Mekonnen, N. (2024). Ethical decision-making dynamics: Insights from professional accountants. Cogent business & management, 11(1), 1–23. https://doi.org/10.1080/23311975.2023.2301138
  8. [8] Narvaez, D., & Rest, J. (1995). The four components of acting morally. Moral behavior and moral development: An introduction, 1(1), 385–400. https://www.researchgate.net/profile/Darcia-Narvaez/publication/313099978
  9. [9] Buchanan, J., Griffith, E., Lambert, T. A., & Perreault, S. (2025). Dark triad traits and accounting: An operating, reporting, and assurance framework. Auditing: A journal of practice & theory, 44(2), 27–49. https://doi.org/10.2308/AJPT-2022-139
  10. [10] Ahmed, M. M., Chung, K. Y., & Eichenseher, J. W. (2003). Business students’ perception of ethics and moral judgment: A cross-cultural study. Journal of business ethics, 43(1), 89–102. https://doi.org/10.1023/A:1022915316112
  11. [11] Laila, M. (2015). Developing rest’s model to examine the relationship between ethical accounting education and international education standard 4 (IES 4) principles. International journal of business and social science, 6(11), 8–17. https://www.scribd.com/document/379637212/2
  12. [12] Chowdhury, E. K. (2026). Cultural intelligence and ethical decision-making in accounting: evidence from Bangladesh and implications for governance in emerging economies. Journal of accounting in emerging economies, 1–23. https://doi.org/10.1108/JAEE-08-2025-0431
  13. [13] Martín-Raugh, M. P., Watts, L. L., Tran, E. H., & Linhardt, R. M. (2026). Ethical decision making in teams: A systematic review. Journal of business ethics, 205(2), 405–429. https://doi.org/10.1007/s10551-025-06149-9
  14. [14] Heim, I., Laker, B., & Tabaeifard, S. J. (2026). Responsible leadership: A systematic literature review, theoretical framework, and future research directions. Journal of business research, 203, 115801. https://doi.org/10.1016/j.jbusres.2025.115801
  15. [15] Ko, C., Ma, J., Bartnik, R., Haney, M. H., & Kang, M. (2018). Ethical leadership: An integrative review and future research Agenda. Ethics & behavior, 28(2), 104–132. https://doi.org/10.1080/10508422.2017.1318069
  16. [16] Torraco, R. J. (2016). Writing integrative literature reviews: Using the past and present to explore the future. Human resource development review, 15(4), 404–428. https://doi.org/10.1177/1534484316671606
  17. [17] Yang, K., Gao, C., & Liu, Y. (2025). Behavioral ethics: Does it have a role in helping develop a better understanding of administrative ethics? The American review of public administration, 55(4), 283–298. https://doi.org/10.1177/02750740241305413
  18. [18] Rogers, J., & Breakey, H. (2023). James Rest’s four component model (FCM): A case for its central place in legal ethics. In Leading works in legal ethics (p. 26). Routledge. https://doi.org/10.4324/9781003015093-14
  19. [19] Indriasih, D., & Sulistyowati, W. A. (2021). The role of ethical orientation and moral intensity in improving ethical decision of an auditor. Jurnal aset (Akuntansi Riset), 13(2), 185–196. https://ejournal.upi.edu/index.php/aset/article/view/38962
  20. [20] Zarei, R., Esmaeeli, A., & Zarei, S. (2016). Studying the influential factors on ethics in accounting and auditing regarding personal dimensions. International business management, 10(7), 1141–1150. https://doi.org/10.3923/ibm.2016.1141.1150
  21. [21] Loh, C. Y., & Wong, J. B. (2009). Matching the’knowing what to do’and the’doing what you know’in ethical decision-making. Australasian accounting, business and finance journal, 3(2), 36–47. https://www.uowoajournals.org/aabfj/article/id/1426/
  22. [22] Khelil, I. (2023). The effect of external efficacy on the moral courage and self-efficacy of internal auditors. International journal of professional business review, 8(12), 1–24. https://doi.org/10.26668/businessreview/2023.v8i12.4029
  23. [23] Whittemore, R., & Knafl, K. (2005). The integrative review: Updated methodology. Journal of advanced nursing, 52(5), 546–553. https://doi.org/10.1111/j.1365-2648.2005.03621.x
  24. [24] Rest, J. R. (1986). Moral development: Advances in research and theory. Praeger. https://books.google.com/books/about/Moral_development.html?id=YDB-AAAAMAAJ
  25. [25] Trevino, L. K. (1986). Ethical decision making in organizations: A person-situation interactionist model. Academy of management review, 11(3), 601–617. https://doi.org/10.5465/amr.1986.4306235
  26. [26] Ferrell, O. C., & Gresham, L. G. (1985). A contingency framework for understanding ethical decision making in marketing. Journal of marketing, 49(3), 87–96. 10.1177/002224298504900308
  27. [27] Hunt, S. D., & Vitell, S. (1986). A general theory of marketing ethics. Journal of macromarketing, 6(1), 5–16. https://doi.org/10.1177/027614678600600103
  28. [28] Jones, T. M. (1991). Ethical decision making by individuals in organizations: An issue-contingent model. Academy of management review, 16(2), 366–395. https://doi.org/10.5465/amr.1991.4278958
  29. [29] Bazerman, M. H., & Tenbrunsel, A. E. (2011). Blind spots: Why we fail to do what's right and what to do about it. Princeton University Press. https://doi.org/10.1515/9781400837991
  30. [30] Treviño, L. K., Den Nieuwenboer, N. A., & Kish-Gephart, J. J. (2014). (Un)ethical behavior in organizations. Annual review of psychology, 65(65, 2014), 635–660. https://doi.org/10.1146/annurev-psych-113011-143745
  31. [31] Sonenshein, S. (2007). The role of construction, intuition, and justification in responding to ethical issues at work: The sensemaking-intuition model. The academy of management review, 32(4), 1022–1040. https://doi.org/10.5465/amr.2007.26585677
  32. [32] Palazzo, G., Krings, F., & Hoffrage, U. (2012). Ethical blindness. Journal of business ethics, 109(3), 323–338. https://doi.org/10.1007/s10551-011-1130-4
  33. [33] Martin, K. (2019). Designing ethical algorithms. MIS quarterly executive. https://doi.org/10.17705/2MSQE.00012
  34. [34] Floridi, L., Cowls, J., Beltrametti, M., Chatila, R., Chazerand, P., Dignum, V., … & Vayena, E. (2018). AI4People—an ethical framework for a good AI society: Opportunities, risks, principles, and recommendations. Minds and machines, 28(4), 689–707. https://doi.org/10.1007/s11023-018-9482-5
  35. [35] Hartanto, R. (2025). Ethical behavior of accounting students: exploring the impact of religious environmental background in university. Journal of islamic accounting and business research. https://doi.org/10.1108/JIABR-12-2024-0504
  36. [36] Nakpodia, F., Sakariyahu, R., Fagbemi, T., Adigun, R., & Dosumu, O. (2024). Sustainable development goals, accounting practices and public financial management: A pre and post COVID-19 assessment. The british accounting review, 101466. https://doi.org/10.1016/j.bar.2024.101466
  37. [37] Kaur, A., Argento, D., Sharma, U., & Soobaroyen, T. (2025). “Everything, everywhere, all at once”: The role of accounting and reporting in achieving sustainable development goals. Journal of public budgeting, accounting & financial management, 37(2), 137–155. https://doi.org/10.1108/JPBAFM-01-2025-0011

Downloads

Published

2026-09-09

Issue

Vol. 3 No. 3 (2026): Accounting and Auditing with Applications (AAA)

Section

Articles

License

Copyright (c) 2026 Accounting and Auditing with Applications

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Khezri, S. A. ., & Zakizadeh, M. A. . (2026). An Integrative Review of Ethical Decision-Making Dynamics and MORAL Judgments in Accounting: A Rest’s Four-Component Model Perspective on Professional Conduct. Accounting and Auditing With Applications , 3(3), 196-213. https://doi.org/10.22105/aaa.v3i3.104

Similar Articles

1-10 of 58

You may also start an advanced similarity search for this article.