Internal auditors hold a unique position in their organizations to prevent, deter, and detect corporate wrongdoings. However, the role of this profession in investigating their ethical decision-making behaviors toward...Internal auditors hold a unique position in their organizations to prevent, deter, and detect corporate wrongdoings. However, the role of this profession in investigating their ethical decision-making behaviors towards internal whistle-blowing intentions has been very often neglected. Furthermore, although extensive researches have been undertaken on the issue of whistle blowing globally, empirical studies on this area are still scarce in Malaysia. This paper examines internal whistle-blowing intentions among internal auditors in Malaysia by utilizing three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors＇ ethical decision-making processes. The likelihood for internal whistle-blowing intentions was significant among internal auditors＇ ethical judgments for all the three vignettes. Demographic factors （gender, age, and tenure） and other individual factors （locus of control and organizational commitment） failed to explain the likelihood of internal auditors＇ internal whistle-blowing intentions. Findings should aid researchers in their understandings of the determinants of individuals＇ internal whistle-blowing behaviors.展开更多
The paper is about how Lebanese auditors detect fraud in the course of their work and what they advise companies to implement in order to avoid fraudulent acts. For this purpose, various interviews were carded out fro...The paper is about how Lebanese auditors detect fraud in the course of their work and what they advise companies to implement in order to avoid fraudulent acts. For this purpose, various interviews were carded out from different experienced and well-reputed external auditors. This was also for their wide knowledge of all kinds of frauds. Data were taken from primary as well as secondary resources. The paper presents the theoretical and practical aspects. The theoretical part contains the accounting scandals, frauds, auditing processes, and auditor＇s responsibilities and tools for auditors to detect fraud. The practical part consists of case study analysis and detailed research processes.展开更多
Previous research on the relationship between audit partner tenure and audit quality assumed that auditors conducted auditing works in a stable external environment where the corporate and management behavior was high...Previous research on the relationship between audit partner tenure and audit quality assumed that auditors conducted auditing works in a stable external environment where the corporate and management behavior was highly predictable. This study uses the joint tenure between audit partners and management to explain audit quality, because corporate directors would consider an appropriate adjustment in the management to deal with a dramatic change in the external environment. First, we examined whether there is a significant association between audit partner tenure and audit quality after the implementation of mandatory audit partner rotation by using the auditor tenure only. We addressed this issue by using a sample of Taiwan Residents companies and found no significant association between audit partner tenure and the magnitude of discretionary accruals （DA）, a common proxy for audit quality. Second, we tested the relationship between audit partner tenure and audit quality under the consideration of industry structure stability. The result exhibits a negative relation between audit partner tenure and audit quality under the control of industry structural stability which is measured by a proxy variable, the joint tenure between audit partner and management. Third, we investigated whether the association does exist between joint tenure of auditors and management and audit quality. We also addressed this issue by using Taiwan Residents data and found a significant association between the joint tenure of auditor and management and the magnitude of DA. Our findings provide evidence that the use of a mandatory rotation rule is an ineffective way to improve audit quality.展开更多
文摘Internal auditors hold a unique position in their organizations to prevent, deter, and detect corporate wrongdoings. However, the role of this profession in investigating their ethical decision-making behaviors towards internal whistle-blowing intentions has been very often neglected. Furthermore, although extensive researches have been undertaken on the issue of whistle blowing globally, empirical studies on this area are still scarce in Malaysia. This paper examines internal whistle-blowing intentions among internal auditors in Malaysia by utilizing three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors＇ ethical decision-making processes. The likelihood for internal whistle-blowing intentions was significant among internal auditors＇ ethical judgments for all the three vignettes. Demographic factors （gender, age, and tenure） and other individual factors （locus of control and organizational commitment） failed to explain the likelihood of internal auditors＇ internal whistle-blowing intentions. Findings should aid researchers in their understandings of the determinants of individuals＇ internal whistle-blowing behaviors.
文摘The paper is about how Lebanese auditors detect fraud in the course of their work and what they advise companies to implement in order to avoid fraudulent acts. For this purpose, various interviews were carded out from different experienced and well-reputed external auditors. This was also for their wide knowledge of all kinds of frauds. Data were taken from primary as well as secondary resources. The paper presents the theoretical and practical aspects. The theoretical part contains the accounting scandals, frauds, auditing processes, and auditor＇s responsibilities and tools for auditors to detect fraud. The practical part consists of case study analysis and detailed research processes.
文摘Previous research on the relationship between audit partner tenure and audit quality assumed that auditors conducted auditing works in a stable external environment where the corporate and management behavior was highly predictable. This study uses the joint tenure between audit partners and management to explain audit quality, because corporate directors would consider an appropriate adjustment in the management to deal with a dramatic change in the external environment. First, we examined whether there is a significant association between audit partner tenure and audit quality after the implementation of mandatory audit partner rotation by using the auditor tenure only. We addressed this issue by using a sample of Taiwan Residents companies and found no significant association between audit partner tenure and the magnitude of discretionary accruals （DA）, a common proxy for audit quality. Second, we tested the relationship between audit partner tenure and audit quality under the consideration of industry structure stability. The result exhibits a negative relation between audit partner tenure and audit quality under the control of industry structural stability which is measured by a proxy variable, the joint tenure between audit partner and management. Third, we investigated whether the association does exist between joint tenure of auditors and management and audit quality. We also addressed this issue by using Taiwan Residents data and found a significant association between the joint tenure of auditor and management and the magnitude of DA. Our findings provide evidence that the use of a mandatory rotation rule is an ineffective way to improve audit quality.
