Comparative Analysis of Ethical Measures and Auditing Standards in Managing Tax Evasion: Effectiveness and Impact

Abstract

This article presents a comparative analysis of the effectiveness and impact of ethical measures versus auditing standards in managing tax evasion. Tax evasion poses significant challenges for both businesses and governments, leading to economic losses and reputational damage. This study investigates two primary strategies for combating tax evasion: the implementation of ethical policies within organizations and the enforcement of auditing standards by regulatory bodies. By evaluating existing literature and empirical data, the article assesses how each approach influences tax compliance and their relative effectiveness. The research design is validated for its reliability in testing the hypotheses and provides consistent results supported by a literature review of existing scholarly work. The research reveals that while both ethical measures and auditing standards are crucial in addressing tax evasion, ethical practices tend to offer more substantial benefits in fostering long-term tax compliance. Enhanced by technological advancements, the auditing process has become more efficient, yet it often encounters resistance and limitations. The findings suggest that integrating strong ethical frameworks within businesses, alongside rigorous auditing practices, is the most effective strategy for managing tax evasion. The study provides valuable insights for policymakers and organizations seeking to improve tax compliance and reduce evasion.