The Impact of Organizational, Individual and Social Influence Characteristics on Auditors Ethical Judgements

Noreen Azella Nawi, Maheran Zakaria

Abstract


The public expects auditors to be honest, independent, objective, and always put the interests of the public ahead of their own. However, the sheer number of unethical incidences have been reported involving the auditors worldwide, and Malaysia is not spared either from these predicaments. The incidences have eroded the public trust in the auditing profession. Many accuse the auditors of being unethical in their actions, eager to enrich themselves instead of protecting the public's interest. Indeed, a study is needed to resolve this issue and thus enhance ethical judgements among the auditors. The issue has motivated the researcher to look for factors related to ethical judgements among the auditors. Applying Hunt and Vitell's theory and Theory of Planned Behaviour, the objectives of this study are to examine the ethical judgments in relation to organizational ethical climate, ethical sensitivity, and social influence. The researcher proposes five hypotheses to be tested to answer the research objectives. Data will be collected from professional accountants working with audit firms in Malaysia. Also, data will be analyzed with SPSS 27 and PLS-SEM version 3. Hence, ethical judgements are expected to reduce the unethical incidence and thus lead the nation to integrity and a better economy.


Keywords


Auditors, Organizational Ethical Climate, Ethical Sensitivity, Social Influence, Ethical Judgements.

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.362

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