The Influence of Personal Value, Moral Philosophy, and Organizational Ethical Culture on Auditor Action and Acceptance for Dysfunctional Behavior

Sanda Patrisia Komalasari, Rahmat Febrianto, Yurniwati ., Nilam Kemala Odang

Abstract


Objectives of this research are to investigate the effect of organizational ethical culture, personal values, and moral philosophy on auditor actions and acceptance for dysfunctional behavior. This research also seeks to investigate the effect of organizational ethical culture through personal values and moral philosophy on auditor actions and acceptance for dysfunctional behavior and effect of personal auditor value on his moral philosophy. By using structural equation modeling technique from survey result 52 auditor resulted that auditor which tend to have moral philosophy of idealism and not relativism is auditor having personal value of conservatism and self-enhancement. While auditor who tend to relativism is auditor who have a personal value of openness to change. Auditor who have a moral philosophy of relativism will tend to accept dysfunctional behavior, while the idealism auditor will tend to reject such behavior. Organizational ethical culture and personal value of self-enhancement are found have an effect on the auditors acceptance for dysfunctional behavior. Only an ethical culture is an ethical environment that affects auditor dysfunctional action. The personal value of conservatism through the moral philosophy of idealism founded have an effect on auditor acceptance for dysfunctional behavior, but not for organizatonal ethical culture through personal value and moral philosophy.

Keywords


Organizational ethical culture, personal values, moral philosophy, dysfunctional acts in auditing, auditor acceptance for dysfunctional behavior

Full Text:

PDF

References


D. Aprilliani, R. Anggaraini, and C. Anwar, “The Effect of Organization Ethical Culture and Ethical Climate on Ethical Decision Making of Auditor with Self Efficacy as Moderating,” Rev. Integr. Bus. Econ., vol. 4, no. 1, pp. 226–244, 2014.

A. Bandura, “Social Cognitive Theory of Personality,” Handb. Personal. theory Res., pp. 154–196, 1999.

I. Barrainkua and M. Espinosa-Pike, “New insights into underreporting of time: the audit partner context,” Accounting, Audit. Account. J., vol. 28, no. 4, 2015.

Leonard J. Brooks, Business and Professional Ethics, 7th ed.,South-Western Collage Pub, July 2014.

J. R. Cohen and L. W. Pant, “Beyond bean counting: Establishing high ethical standards in the public accounting profession,” J. Bus. Ethics, vol. 10, no. 1, pp. 45–56, 1991.

M. W. Dirsmith and M. A. Covaleski, “Informal communications, nonformal communications and mentoring in public accounting firms,” Accounting, Organ. Soc., vol. 10, no. 2, pp. 149–169, 1985.

D. P. Donnelly, J. J. Quirin, and D. O’Bryan, “Auditor Acceptance of Dysfunctional Audit Behavior: An Explanatory Model Using Auditors Personal Characteristics,” Behav. Res. Account., vol. 15, pp. 87–110, 2003

Yavuz Erisen et al, Learning and Teaching: Theories, Approaches, and Models, Chapter 3: Cognitive Learning Theories, 1st ed., 2016.

T. J. Fogarty, “Organizational socialization in accounting firms: A theoretical framework and agenda for future research,” Accounting, Organ. Soc., vol. 17, no. 2, pp. 129–149, 1992.

D. R. Forsyth, “A taxonomy of ethical ideologies,” J. Pers. Soc. Psychol., vol. 39, no. 1, pp. 175–184, 1980.

D. R. Forsyth, “Judging the morality of business practices: The influence of personal moral philosophies,” J. Bus. Ethics, pp. 265–277, 1992.

D. J. Fritzsche and E. Oz, “Personal values’ influence on the ethical dimension of decision making,” J. Bus. Ethics, vol. 75, no. 4, pp. 335–343, 2007.

J. W. Grube, D. M. Mayton, and S. J. Ball‐Rokeach, “Inducing Change in Values, Attitudes, and Behaviors: Belief System Theory and the Method of Value Self‐Confrontation,” J. Soc. Issues, vol. 50, no. 4, pp. 153–173, 1994.

L. C. G. G. A. Liyanarachchi, “Time budget pressure, auditors’ personality type, and the incidence of reduced audit quality practices,” Pacific Account. Rev., vol. 19, no. 2, pp. 125–152, 2007.

R. R. Hoek, Forty studies that changed psychology, New Jersey: Prentice Hall, 1999.

S. D. Hunt and S. J. Vitell, “The general theory of marketing ethics: A revision and three questions,” J. Macromarketing, vol. 26, no. 2, pp. 143–153, 2006.

R. J. Johari, Z. Mohd-Sanusi, and V. K. Chong, “Effects of Auditors’ Ethical Orientation and Self-Interest Independence Threat on the Mediating Role of Moral Intensity and Ethical Decision-Making Process,” Int. J. Audit., vol. 21, no. 1, pp. 38–58, 2017.

M. S. Karim, H. Paino, F. A. Jabar, N. F. M. Pauzi, and S. A. N. A. Bakar, “Factors contributing to premature sign-off of audit procedure: Evidence from Malaysia,” Adv. Sci. Lett., vol. 21, no. 5, pp. 1243–1246, 2015.

F. Kung and C. Li Huang, “Auditors’ moral philosophies and ethical beliefs,” Manag. Decis., vol. 51, no. 3, pp. 479–500, 2013.

D. T. Otley and B. J. Pierce, “Auditor time budget pressure: consequences and antecedents,” Accounting, Audit. Account. J., vol. 9, no. 1, pp. 31–58, 1996.

K. C. Rallapalli, S. J. Vitell Jr., and S. Szeinbach, “Marketers’ Norms and Personal Values: An Empirical Study of Marketing Professionals,” J. Bus. Ethics, vol. 24, no. 1, pp. 65–75, 2000.

D. Satava, C. Caldwell, and L. Richards, “Ethics and the auditing culture: Rethinking the foundation of accounting and auditing,” J. Bus. Ethics, vol. 64, no. 3, pp. 271–284, 2006.

E.H.Schein, E.H, Organizational Culture and Leadership. Jassey-Bass: San Francisco, 1988

S. H. Schwartz and W. Bilsky, “Toward a universal psychological structure of human values.,” J. Pers. Soc. Psychol., vol. 53, no. 3, pp. 550–562, 1987.

S. H. Schwartz, “Universals in the content and structure of values: Theoretical advances and empirical tests in 20 countries,” Adv. Exp. Soc. Psychol., vol. 25, no. C, pp. 1–65, 1992.Schwartz, Shalom H. 1992.

S. H. Schwartz and L. Sagiv, “Identifying culture-specifics in the content and structure of values,” J. Cross. Cult. Psychol., vol. 26, no. 1, pp. 92–116, 1995.

W. E. Shafer and Z. Wang, “Effects of ethical context on conflict and commitment among Chinese accountants,” Manag. Audit. J., vol. 25, no. 4, pp. 377–400, 2010.

S. Steenhaut and P. Van Kenhove, “An empirical investigation of the relationships among a consumer’s personal values, ethical ideology and ethical beliefs,” J. Bus. Ethics, vol. 64, no. 2, pp. 137–155, 2006.

E. Suhayati, “The Influence of Audit Fee, Audit Time Budget Pressure and Public Accountant Attitude On The Public Accountant Dysfunctional Behavior and It’s Implication on Audit Quality Survey on ‘Small’ Scale Public Accounting Firm’s in Java,” J. Glob. Manag., vol. 4, no. 1, pp. 1–24, 2012.

J. Svanberg and P. Öhman, “Auditors’ time pressure: does ethical culture support audit quality?,” Manag. Audit. J., vol. 28, no. 7, pp. 572–591, 2013.

B. Sweeney, B. Pierce, and D. F. Arnold, “The impact of perceived ethical intensity on audit-quality-threatening behaviours,” Account. Bus. Res., vol. 43, no. 2, pp. 112–137, 2013.Trevino, Linda Klebe. 1986. “Ethical Decision Making in Organizations : A Person-Situation Interactionist Model.” The Academy of Management Review

L. K. Trevino, “Ethical Decision Making in Organizations.pdf,” The Academy of Management Review, vol. 11, no. 3. pp. 601–617, 1986.

L. K. Trevino, K. D. Butterfield, and D. L. McCabe, “The Ethical Context In Organizations: Influences Employee Attitudes And Behaviors,” Bus. Ethics Q., vol. 3, pp. 213–238, 1998.

J. Van Maanen and E.H. Schein, "Toward of Theory of Organizational Socialization." Research in Organizational Behavior, 1979.

R. Zarei, A. Esmaeeli, and S. Zarei, “Studying the influential factors on ethics in accounting and auditing regarding personal dimensions,” International Business Management, vol. 10, no. 7. pp. 1141–1150, 2016.

H. Paino, M. Smith, and Z. Ismail, “Auditor acceptance of dysfunctional behaviour,” J. Appl. Account. Res., vol. 13, no. 1, pp. 37–55, 2012.




DOI: http://dx.doi.org/10.52155/ijpsat.v10.2.590

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Sanda Patrisia Komalasari, Rahmat Febrianto, Yurniwati ., Nilam Kemala Odang

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.