Exploring internal auditors’ whistleblowing intentions towards corporate fraud: A prosocial behaviour perspective (original) (raw)
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Internal auditors hold a unique position in their organisations to prevent, deter and detect corporate wrongdoings; however, the role of this profession in investigating their ethical decision-making behaviour towards internal whistleblowing intentions has been very much neglected. Furthermore, although extensive research having been undertaken on the issue of whistleblowing globally, empirical study in this area is still scarce in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysian utilising three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors' ethical decision-making process. The likelihood for internal whistleblowing intentions was only significant among internal auditors' ethical judgments on all the three vignettes. Demographic factors (gender, age, and tenure) and other individual factors (locus of control and organisational commitment) failed to explain the likelihood internal auditors' internal whistleblowing intentions. Findings should aid researchers in their understanding of the determinants of individuals' internal whistleblowing behaviour.
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International Journal of Applied Statistics and Econometrics, 2018
Organizational wrongdoing incidences have been widely spread throughout the business world. Accounting professionals are the key human resources who find evidence of wrongdoing in firms and have the opportunity to report it. The purpose of this study is to examine the relationship between the perception by accounting professionals concerning valid predictors for whistle-blowing and their preferences in doing so. Using the survey method, 177 responses were collected from Turkish accounting professionals. A partial least square structural equation model was constructed to test both the reliability and validity of the measurement and the structural model. The results showed that the 'ethics and professional benefit' and 'corporate benefit' dimensions of whistle-blowing predictors have significant positive impact on 'internal whistle-blowing'. However, the accountants' perceptions of 'fear of retaliation' and 'corporate benefit' as whistle-blowing predictors have positive influence on 'anonymous whistle-blowing'. Finally, while perception of the accountants about 'fear of retaliation' has a positive relationship for deciding to not blow the whistle, the accountant professionals who have more 'corporate benefit' whistle-blowing perception have less propensity to not blow the whistle.
Zenodo (CERN European Organization for Nuclear Research), 2023
This study aims to examine the tendency of fraud to the perception of external auditors triggered by the five components of pentagon fraud: pressure, opportunity, arrogance, rationalization,and competence. In addition, the morality of the individual is placed as an intervention variable for this relationship. This is a quantitative study with a survey of external auditors at the BPK in Jakarta. The intervention model for the research framework was developed to investigate the role of individual morality interference. The findings suggest that the five components of the pentagon's fraud theory are not fully proven to be fraud triggers in the perception of external auditors. Arrogance, rationalization, and competence have proven to have a positive effect on the perception of fraud tendencies, while pressure and opportunity have a negative impact on the perception of fraud tendencies. Then pressure, rationalization, and competence are shown to negatively impact individual morality, while opportunity and arrogance positively impact individual morality. In addition, 5 (five) variables in fraud pentagon theory, namely pressure, opportunity, arrogance, rationalization, and competence, are proven to prevent the perception of fraud tendency. This can be explained because this study is the first study to examine pentagon fraud in the context of behavior in the environment of government external auditors, so the results cannot be compared with previous studies that used proxies in financial statements as predictors of fraud.
Determinant of internal auditor’s intention to perform whistleblowing: a proposed model
2019
So many years passed after SOX, fraud in corporation does not show a significant decrease, and only 7 percent of the cases were revealed through a whistleblowing system. BPR is an organization that have a significant weakness in fraud. This paper aims to formulate a research model related to the determination of the intention of internal auditors at BPR to take whistleblowing actions. The model proposed in this paper is derived from Theory of Planned Behavior and Social Cognitif Theory. Variables used in this model are attitude, social norm, perceived behavioural control, self efficacy, and outcome expectation. This research is expected to make a theoretical, scientific, insightful, and literary contribution related to the factors that influence the intention of an internal auditor at BPR to conduct whistleblowing in terms of the TPB and SCT model.
International Journal of Ethics & Society
Introduction: Reporting whistleblowing as an ethical behavior can play an effective role in combating illegal behaviors as well as preventing scandals in organizations, especially auditing firms. Therefore, the purpose of this study is to investigate the effect of ethical foundations of auditors working in the private sector on their willingness to report audit whistleblowing. Material and Methods: This research is applied in terms of purpose and it is a descriptive-correlational study. The statistical population of the present study is all auditors working in private sector audit firms that 160 people have been selected using random sampling method. The research variables were measured using standard questionnaires and finally, multivariate regression test was used to analyze the collected data. Results: The results of the present study confirm the positive and significant effect of ethical foundations on decisions related to reporting whistleblowing in private sector audit firms. The results also showed that as the age and job rank of auditors working in private sector auditing firms increases, their tendency to report auditing whistleblowing decreases. Conclusions: Since increasing the willingness of auditors to disclose whistleblowing in order to perform the task of accreditation leads to improved audit quality; According to the results obtained in this study, influential organizations in the legislature are suggested to consider the ethical foundations as an effective factor in reporting whistleblowing and work to strengthen it. In this way, in such a competitive market, auditors can be encouraged to be fair to others, even if it threatens their own well-being and safety.