Determinants Of External Auditors’ Whistleblowing Intentions In Malaysia

Abstract

The issue of whistleblowing has gained more attention over the years, by reason of an increasing number of corporate scandals within and outside Malaysia. Despite extensive research undertaken on this issue globally, there is lack of empirical studies in the Malaysian context, especially whistleblowing in the auditing profession. Therefore, the study examined the whistleblowing intention of external auditors in Malaysia and the factors influencing this intention. The study adopted the Theory of Planned Behavior (TPB) as a grounded theory by developing a multi-component model of attitude, subjective norms, and perceived behavioural control. The study proposed professional factors of professional commitment and independence commitment, which were hypothesized to be key factors in intention to whistleblow among external auditors. These factors were incorporated with perceived organizational support as an organizational factor. Data were collected using a structured questionnaire that was sent by post to external auditors throughout Malaysia. Participants were selected using a convenience non-probability sampling technique. A total of 274 responses were analysed. SmartPLS version 3.2.8 was used to test the relationships between the constructs. The results confirmed that professional factors can increase external auditors to whistleblow. Professional commitment, independence commitment, subjective norms and perceived behavioural control had a positive influence on whistleblowing intention. However, attitude and perceived organizational support did not support the relationship with whistleblowing intention.