Phenomena Affecting the Ethical Behavior of Internal Auditors in Higher Education
DOI:
https://doi.org/10.55927/fjmr.v3i2.8197Keywords:
Ethical Behavior, Internal Auditors, College EnvironmentAbstract
The focus of this study is to find out how auditors perceive when carrying out their duties and which can influence auditor ethical behavior, especially in the tertiary environment. This research was conducted at the Internal Supervisory Unit of a state university. This study uses a phenomenological approach as part of qualitative research, data collection using interviews with auditors in the financial section of the Internal Supervisory Unit of State Universities. Based on research on the factors that influence the ethical behavior of auditors in the tertiary environment, there is an auditor's ethical reasoning, the professional commitment of an auditor, environmental conditions related to the influence of superiors, and also ethical, moral support, as well as the spirituality of the auditor.Downloads
References
Abdelhak, E. E., Elamer, A. A., AlHares, A., & McLaughlin, C. (2019). Auditors’ ethical reasoning in developing countries: the case of Egypt. International Journal of Ethics and Systems, 35(4), 558–583. https://doi.org/10.1108/IJOES-02-2019-0041
Al Momamani, M. A., & Obeidat, Mm. I. (2013). The Effect of Auditors’ Ethics on Their Detection of Creative Accounting Practices: A Field Study. International Journal of Business and Management, 8(13). https://doi.org/10.5539/ijbm.v8n13p118
Alias, N. F., Nawawi, A., & Salin, A. S. A. P. (2019). Internal auditor’s compliance to code of ethics: Empirical findings from Malaysian Government-linked companies. Journal of Financial Crime, 26(1), 179–194. https://doi.org/10.1108/JFC-07-2017-0066
Allen, P. W., & Ng, C. K. (2001). Self interest among CPAs may influence their moral reasoning. Journal of Business Ethics, 33(1), 29–35. https://doi.org/10.1023/A:1011933324986
Arrami, N., & Qingxiang, Y. (2022). Impact of Ethical Training on Auditors’ Ethical Decision Making in Morocco. Studia Universitatis Vasile Goldis Arad, Economics Series, 32(2), 41–64. https://doi.org/10.2478/sues-2022-0008
Buchan, H. F. (2005). Ethical decision making in the public accounting profession: An extension of Ajzen’s theory of planned behavior. Journal of Business Ethics, 61(2), 165–181. https://doi.org/10.1007/s10551-005-0277-2
Carr, S., Hamilton, E., & Meade, P. (2005). Is It Possible? Investigating the influence of external quality audit on university performance. Quality in Higher Education, 11(3), 195–211. https://doi.org/10.1080/13538320500329665
Chan, S. Y. S., & Leung, P. (2006). The effects of accounting students’ ethical reasoning and personal factors on their ethical sensitivity. Managerial Auditing Journal, 21(4), 436–457. https://doi.org/10.1108/02686900610661432
Chiu, R. K. (2003). Ethical Judgment and Whistleblowing Intention: Examining the Moderating Role of Locus of Control. Journal of Business Ethics, 43(1–2), 65–74. https://doi.org/10.1023/A:1022911215204
Chow, C. W., Massey, D. W., Thorne, L., & Wu, A. (2013). A qualitative examination of auditors’ differing ethical characterizations across the phases of the audit. Research on Professional Responsibility and Ethics in Accounting, 17, 97–138. https://doi.org/10.1108/S1574-0765(2013)000017007
Cohen, J. R., Pant, L. W., & Sharp, D. J. (2001). An examination of differences in ethical decision-making between Canadian business students and accounting professionals. Journal of Business Ethics, 30(4), 319–336. https://doi.org/10.1023/A:1010745425675
Cordery, C. (2015). Accounting history and religion: A review of studies and a research agenda. Accounting History, 20(4), 430–463. https://doi.org/10.1177/1032373215610590
Creswell, J. . . (2017). Research Design Qualitative Quantitative and Mixed Methods-Approaches. In News.Ge (p. https://news.ge/anakliis-porti-aris-qveynis-momava).
Donnelly, D. P., Bryan, D. o, & Quirin, J. j. (2005). Locus Of Control And Dysfunctional Audit Behavior. Journal of Business & Economics Research, 3(10), 9–14.
Douglas, P. C., Davidson, R. A., & Schwartz, B. N. (2001). The effect of organizational culture and ethical orientation on accountants’ ethical judgments. Journal of Business Ethics, 34(2), 101–121. https://doi.org/10.1023/A:1012261900281
Efferin, S., & Hutomo, C. C. (2021). Spirituality, happiness and auditors’ commitment: an interbeing perspective. Accounting, Auditing and Accountability Journal, 34(4), 701–730. https://doi.org/10.1108/AAAJ-01-2020-4385
Elias, R. Z. (2002). Determinants of earnings management ethics among accountants. Journal of Business Ethics, 40(1), 33–45. https://doi.org/10.1023/A:1019956821253
Eulerich, M., Henseler, J., & Köhler, A. G. (2017). The internal audit dilemma – the impact of executive directors versus audit committees on internal auditing work. Managerial Auditing Journal, 32(9), 854–878. https://doi.org/10.1108/MAJ-08-2016-1435
Everett, J., & Tremblay, M. S. (2014). Ethics and internal audit: Moral will and moral skill in a heteronomous field. Critical Perspectives on Accounting, 25(3), 181–196. https://doi.org/10.1016/j.cpa.2013.10.002
Fagbemi, T. O. (2020). Impact of Environmental, Demographical and Personal Factors on Auditors’ Ethical Decision Making in Nigeria. Studia Universitatis „Vasile Goldis” Arad – Economics Series, 30(3), 35–58. https://doi.org/10.2478/sues-2020-0016
Farrag, D. A., & Hassan, M. (2015). The infuence of religiosity on egyptian muslim youths’ attitude towards fashion. Journal of Islamic Marketing, 6(1), 95–108. https://doi.org/10.1108/JIMA-04-2014-0030
Ferrell, O. C., & Gresham, L. G. (1985). A Contingency Framework for Understanding Ethical Decision Making in Marketing. Journal of Marketing, 49(3), 87. https://doi.org/10.2307/1251618
Gul, F. A., Ng, A. Y., & Tong, M. Y. J. W. (2003). Chinese Auditors’ Ethical Behavior in an Audit Conflict Situation. Journal of Business Ethics, 42(4), 379–392. https://doi.org/10.1023/A:1022504712186
Hamawandy, N. M., & Omer, R. (2020). ROLE OF INTERNAL AND EXTERNAL AUDIT IN PUBLIC SECTOR GOVERNANCE. A CASE STUDY OF KURDISTAN REGIONAL GOVERNMENT The Role of Innovative Bank Products on Customer Perception Influencing Accounting Procedures in Kurdistan View project. Article in Journal of Advanced Science, May. https://www.researchgate.net/publication/341443382
Hayes, R., Dassen, R., Schilder, A., & Wallage, P. (2005). Principles of Auditing. An Introduction to International Standards of Auditing. Second Edition. https://www.pwc.com/mt/en/StudentMaterial/2018/An Introduction to ISAs.pdf
Ho, Y.-H., & Lin, C.-Y. (2006). Can Business Ethics Be Taugh? The Journal of Human Resource and Adult Learning, 2(1), 33–38.
Ismail, S. (2015). Influence of emotional intelligence, ethical climates, and corporate ethical values on ethical judgment of Malaysian auditors. Asian Journal of Business Ethics, 4(2), 147–162. https://doi.org/10.1007/s13520-015-0047-x
Ismail, S., & Rasheed, Z. (2019). Influence of ethical ideology and emotional intelligence on the ethical judgement of future accountants in Malaysia. Meditari Accountancy Research, 27(6), 805–822. https://doi.org/10.1108/MEDAR-04-2018-0326
Ismail, S., & Yuhanis, N. (2018). Determinants of ethical work behaviour of Malaysian public sector auditors. Asia-Pacific Journal of Business Administration, 10(1), 21–34. https://doi.org/10.1108/APJBA-07-2017-0068
Jamshed, S. (2014). Qualitative research method-interviewing and observation. Journal of Basic and Clinical Pharmacy, 5(4), 87. https://doi.org/10.4103/0976-0105.141942
Jessica, M.-M., Chockalingam, V., Satish P., D., & Jacob, J. (2010). Emotional Intelligence, Individual Ethicality, and Perceptions. Revista de Psicología Del Trabajo y de Las Organizaciones, 26(1), 35–45. https://doi.org/10.5093/tr2010v26n1a3
Jones, T. M. (1991). Ethical Decision Making by Individuals in Organizations : An Issue-Contingent Model. 16(2), 366–395.
Jurica, L., & Gunardi, E. (2012). Faktor-Faktor Yang Memengaruhi Perilaku Etis Mahasiswa Akuntansi Universitas Bakrie. Media Riset Akuntansi, 2(2), 113–142.
Kallio, T. J., Kallio, K. M., & Blomberg, A. (2020). From professional bureaucracy to competitive bureaucracy redefining universities’ organization principles, performance measurement criteria, and reason for being. Qualitative Research in Accounting and Management, 17(1), 82–108. https://doi.org/10.1108/QRAM-10-2019-0111
Kashif, M., Zarkada, A., & Thurasamy, R. (2017). The moderating effect of religiosity on ethical behavioural intentions: An application of the extended theory of planned behaviour to Pakistani bank employees. Personnel Review, 46(2), 429–448. https://doi.org/10.1108/PR-10-2015-0256
Kettunen, J. (2012). External and internal quality audits in higher education. TQM Journal, 24(6), 518–528. https://doi.org/10.1108/17542731211270089
Klebe Trevino, L. (2013). Moral reasoning and business ethics: Implications for research, education, and management. Citation Classics from The Journal of Business Ethics: Celebrating the First Thirty Years of Publication, 11(5), 131–151. https://doi.org/10.1007/978-94-007-4126-3_7
Lan, G., Ma, Z., Cao, J., & Zhang, H. (2009). A comparison of personal values of chinese accounting practitioners and students. Journal of Business Ethics, 88(SUPPL. 1), 59–76. https://doi.org/10.1007/s10551-008-9829-6
Lehman, G. (2006). Perspectives on language, accountability and critical accounting: An interpretative perspective. Critical Perspectives on Accounting, 17(6), 755–779. https://doi.org/10.1016/j.cpa.2005.02.002
Mappanyuki, R. (2016). Effects Spiritual Influence Of Auditors , Complexity Task , Ethics Auditor And Auditor Expertise On The Performance Auditor Withaccounting Information Systems With Moderating Variabel ( Empirical Study On Bpkp Representative Office South Sulawesi ). South East Asia Journal of Contemporary Bussines, Economics and Law, 9(1), 28–43.
Mirshekary, S., & Carr, R. (2015). Effects of exposure to unethical practices on the personal attitudes of accountants in small accounting firms. Journal of Management and Organization, 21(1), 98–106. https://doi.org/10.1017/jmo.2014.62
Norman, C. S., Rose, A. M., & Rose, J. M. (2010). Internal audit reporting lines, fraud risk decomposition, and assessments of fraud risk. Accounting, Organizations and Society, 35(5), 546–557. https://doi.org/10.1016/j.aos.2009.12.003
O’Fallon, M. J., & Butterfield, K. D. (2005). A review of the empirical ethical decision-making literature: 1996-2003. Journal of Business Ethics, 59(4), 375–413. https://doi.org/10.1007/s10551-005-2929-7
Oboh, C. S. (2019). Personal and moral intensity determinants of ethical decision-making: A study of accounting professionals in Nigeria. Journal of Accounting in Emerging Economies, 9(1), 148–180. https://doi.org/10.1108/JAEE-04-2018-0035
Oboh, C. S., Ajibolade, S. O., & Otusanya, O. J. (2020). Ethical decision-making among professional accountants in Nigeria: the influence of ethical ideology, work sector, and types of professional membership. Journal of Financial Reporting and Accounting, 18(2), 389–422. https://doi.org/10.1108/JFRA-09-2019-0123
Ogoun, S., & Zuode, O. T. K. (2020). A Meta-Analysis on Locus of Control and Ethical Compliance among Professional Auditors in Nigeria. Open Journal of Accounting, 09(01), 1–14. https://doi.org/10.4236/ojacct.2020.91001
Payne, D. M., Corey, C., Raiborn, C., & Zingoni, M. (2020). An applied code of ethics model for decision-making in the accounting profession. Management Research Review, 43(9), 1117–1134. https://doi.org/10.1108/MRR-10-2018-0380
Reynolds, M. A. (2000). Professionalism, ethical codes and the internal auditor: A moral argument. Journal of Business Ethics, 24(2), 115–124. https://doi.org/10.1023/A:1006179723979
Roussy, M. (2013). Internal auditors’ roles: From watchdogs to helpers and protectors of the top manager. Critical Perspectives on Accounting, 24(7–8), 550–571. https://doi.org/10.1016/j.cpa.2013.08.004
Roy, M. N., & Saha, S. S. (2018). Statutory auditors’ independence in protecting stakeholders’ interest: An empirical study. In Statutory Auditors’ Independence in Protecting Stakeholders’ Interest: An Empirical Study. https://doi.org/10.1007/978-3-319-73727-0
Said, A. N., & Diana, R. (2018). PENGARUH KECERDASAN INTELEKTUAL, KECERDASAN EMOSIONAL DAN KECERDASAN SPIRITUAL TERHADAP SIKAP ETIS MAHASISWA AKUNTANSI (Studi Empiris Pada Mahasiswa Prodi Akuntansi Universitas Negeri Yogyakarta). Nominal, Barometer Riset Akuntansi Dan Manajemen, 7(1). https://doi.org/10.21831/nominal.v7i1.19357
Shearer, T. (2002). Ethics and accountability: From the for-itself to the for-the-other. Accounting, Organizations and Society, 27(6), 541–573. https://doi.org/10.1016/S0361-3682(01)00036-8
Suyono, E., & Farooque, O. Al. (2019). Auditors’ professionalism and factors affecting it: insights from Indonesia. Journal of Asia Business Studies, 13(4), 543–558. https://doi.org/10.1108/JABS-03-2018-0073
Trevino, L. K. (1986). Ethical Decision Making in Organizations: A Person-Situation Interactionist Model. The Academy of Management Review, 11(3), 601. https://doi.org/10.2307/258313
Van Rooy, D. L., & Viswesvaran, C. (2004). Emotional intelligence: A meta-analytic investigation of predictive validity and nomological net. Journal of Vocational Behavior, 65(1), 71–95. https://doi.org/10.1016/S0001-8791(03)00076-9
Zakaria. (2010). Knowledge of ethics, perceived ethical problems and ethical judgments. Journal of Financial Reporting and Accounting, 34(1), 1–5.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Arifudin, Satia Nur Maharani, Eka Ananta Sidharta
This work is licensed under a Creative Commons Attribution 4.0 International License.