The effect of government internal auditors moral reasoning and situational pressure on the tendency to commit fraud when auditing: An experimental study
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2015, Vol 18, Issue 3
Abstract
This study aims to examine the effect of government internal auditors moral levels and situational pressures on the tendency to commit fraud when conducting audit. Based on the hypothesis, despite the situational pressures, the government internal auditors who have a high moral level will not commit fraud at the time of auditing. Meanwhile, the government internal auditors who have a low moral level will com-mit fraud at the time of auditing when there is situational pressure. To test the hypothesis, a 2 factorial experiment is conducted involving 68 students of STAR-BPKP of Jenderal Soedirman University. The results indicate that the government internal auditors who have a high moral level will not commit fraud in the time of auditing despite some situational pressures. Meanwhile, the government internal auditors who have a low moral level will commit fraud at the time of auditing either there is a situational pressure or not. The implications of this study are to streng-then the supervisory system for the internal auditors at the time of auditing, to provide protection for whistle- blowers who report the presence of fraud committed by auditors, and to be consistent in giving reward to professional auditors and pu-nishment to auditors who are convicted of fraud at the time of auditing.
Authors and Affiliations
Novita Puspasari, Meutia Karunia Dewi
Keywords
Related Articles
- EP ID EP474646
- DOI 10.14414/jebav.v18i3.514
- Views 57
- Downloads 0
Analysis of intention toward halal products: an empirical study of young consumers
The purpose of this paper is to determine the intention of consumer in choosing halal products, particularly for food products. The three main elements in the Theory of Planned Behavior (TPB) consisting of attitude, subj...
The effect of intellectual capital disclosure on cost of capital: Evidence from technology intensive firms in Indonesia
There has been an increasing interest in intellectual capital due to the shift from the economical aspect into knowledge and information management aspect. Currently, public firms in Indonesia are not required by account...
Study on decision making model on information presentation by clients management: an experimental test on halo and recency effect
Auditing is a process to verify financial statements that require a high degree of professional skepticism from auditors. However, auditors individually have cognitive limitation in processing information. Overall assess...
Human capital development strategy on go-public manufacturing companies in Indonesia
This study analyzes the development of human capital strategy in go-public manufactur-ing companies, examining the several effects of variables, and also the effect of interven-ing variables on the development of human c...
The Impacts of Fiscal Decentralization, Institutional Transformation, and Regional Revenue on Income Disparities between Provinces in Indonesia
This study aims to determine the impacts of fiscal decentralization, institutional transformation, and regional revenue to the income disparity among the provinces in Indonesia. This study uses panel data with the number...