The moderating role of perceived organisational support in breaking the silence of public accountants

This paper reports the results of a survey with public accountants in Barbados on their intention to report a superior’s unethical behaviour. Specifically, it investigates to what extent perceived organisational support (POS) in audit organisations would moderate Barbadian public accountants’ intentions to blow the whistle internally and externally. Results indicate that internal whistle-blowing intentions are significantly influenced by all five individual antecedents (attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting and personal cost of reporting), and the influence of the antecedents is intensified when the level of POS is high. However, further results indicate that external whistle-blowing intentions are significantly influenced by only three individual-level antecedents viz. attitudes, perceived behavioural control and personal cost of reporting, and their influence is intensified when the level of POS is low. The results suggest that POS is an important mechanism for controlling behaviour

The influence of individual, team and contextual factors on external auditors' whistle-blowing intentions in Barbados. Towards the development of a conceptual model of external auditors' whistle-blowing intentions.

Following the collapse of Arthur Andersen in the Enron debacle, whistle-blowing within audit firms has taken on greater importance. Given the profession's requirements to be confidential, independent and to act in the public's interest, there is a need for a model that addresses auditors' whistle-blowing intentions. This thesis presents a conceptual model on whistle-blowing intentions among external auditors, where individual-led antecedents influence whistle-blowing intentions, but are moderated by isomorphic and issue-specific factors. Survey questionnaires were administered to 226 external auditors, and 18 individual interviews as well as 2 focus groups were conducted in Barbados. Results indicated that individual antecedents (attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting, and personal cost of reporting) were significantly related to internal whistle-blowing, but only perceived behavioural control was significantly related to external whistle-blowing. Partial support was found for the moderating effects of perceived organizational support, moral intensity, team norms and group cohesion on the relationships between the majority of the independent variables (attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting and personal cost of reporting) and internal whistle-blowing. However, partial support was found for the moderating effects of perceived organizational support, moral intensity, team norms iii and group cohesion on the relationships between fewer independent variables and external whistle-blowing. Overall, respondents preferred anonymous internal channels of reporting, and showed a general reluctance to report externally. The presence of an open-door policy, ethics partners, hotline, on-going training and clearly defined policies could encourage whistle-blowing. Further implications for research and practice are discussed.University of the West Indie

Towards a conceptual model of whistle-blowing intentions among auditors

Whistle-blowing has received considerable attention in the ethics literature. However, following the collapse of Arthur Andersen in the Enron debacle, whistle-blowing within audit firms has taken on greater importance. Given the profession's requirements to be confidential, independent and to act in the public interest (e.g. Sarbanes–Oxley Act, 2002), there is a need for a model that is specific to the audit profession (e.g. Louwers, Ponemon, & Radtke, 1997), and in particular, that addresses auditors' whistle-blowing intentions. This paper presents a conceptual model on whistle-blowing intentions among external auditors where an auditor's individual factors (attitudes toward whistle-blowing, perceived behavioural control, independence commitment, personal responsibility for reporting and personal cost of reporting) have a direct influence on his or her intentions to whistle-blow, but are moderated by isomorphic factors (perceived organisational support and team norms) and issue-specific factors (perceived moral intensity). Using justice and institutional theories, the proposed model anticipates that whistle-blowing within an audit firm produces both positive and negative consequences to society, the audit firm and the individual whistle-blower. However, where audit firms have adequate formal supporting mechanisms for reporting wrongdoings to internal and external parties, the negative effects and personal costs of reporting will be minimised

Perceived effectiveness of fraud detection audit procedures in a stock and warehousing cycle: Additional evidence from Barbados

Purpose – The purpose of this paper is to explore perceptions of fraud detection techniques in the stock and warehouse cycle in Barbados. Design/methodology/approach – The study uses a self-administered questionnaire, adapted and modified from Owusu-Ansah et al. The sample is comprised of 64 auditors. The study examines the perceived effectiveness of audit procedures, the influence of size of the audit firm, and the level of audit experience in the choice of specific audit procedures. Findings – The study indicates that there is a moderate to high perceived effectiveness of standard audit procedures in the detection of fraud in the stock and warehousing cycle in Barbados and that the majority of the “more effective” audit procedures can be classified as field research techniques that are more direct in obtaining evidence. It is found that auditors from larger firms reported higher means for audit procedures. There are mixed findings with respect to the significant relationship between level of auditing experience of auditors and perceived effectiveness of fraud detection techniques. The study also indicates that males consistently rated the level of effectiveness of audit procedures higher than females. Research limitations/implications – Due to the relatively small sample size, these findings should be interpreted with caution. Nonetheless, the findings of this study do indicate that auditing procedures in this developing country are on par with those of developed countries. Practical implications – This paper serves to inform audit-related policies and regulation on the potential threats within the stock and warehouse cycle. Originality/value – This paper contributes to the limited body of research on fraud detection within the stock and warehouse cycle in small developing countries.Auditing, Barbados, Developing countries, Fraud, Stock control, Warehousing