Integrity, Auditor Independence, and the Protection of Investors

Does Commitment to Home Organization Hurt the Inner Quality of Internal Auditors? Quadratic-Moderating Analysis

“…Auditors who are committed to carrying out their duties and responsibilities in their organization will provide the best integrity in providing fair reports, as confirmed in hypothesis 2. This is also reinforced by studies which suggest that auditor commitment has a positive effect on their integrity (Gaa, 2006;Nasution & Östermark, 2012). This finding is in line with management theory that the attitude of auditors who are not motivated by individual goals will encourage auditors to be impartial other than to the organization or institution (Albanese, et al 1997;Davis et al, 2010;Maliah et al, 2015).…”

“…This finding confirms the formulation of hypothesis 1. The better the internal auditor's independence, the more committed the internal auditor will be to his organization (Gaa, 2006;Kaplan & Whitecotton, 2001). This independence attitude is an attitude that is impartial, not contradictory and cannot be controlled by others and is honest in all matters (Subott et al, 2004).…”

“…Research on the effect of organizational commitment on independence has been well-supported (Dellaportas et al, 2012;Gendron et al, 2006;Kaplan & Whitecotton, 2001). Commitment's relationship with integrity is still elusive, with some authors have developed the sense of particular investigation (Gaa, 2006;Nasution & Östermark, 2012). These conversations lead to the hypothesis formulation in numbers.…”

Audit Partners Gender, Auditor Quality and Clients Value Relevance

“…This indicates that female audit partners provide high-quality audit work for investors' protection. The investors' protection requires auditor's integrity (Gaa, 2006). Thus, female auditors are able to provide investors protection as they are ethical (Abed1 & Al-badainah, 2013) and discharge high-quality audit work (Hardies et al 2016;Ittonen & Peni, 2012).…”

Accounting for the Public Interest

“…Although SOX-style "legislated ethics" (Rockness and Rockness 2005 ) may diminish the attractiveness of engaging in corporate fraud by changing the risk and payoff dynamics, the compliance perspective that results may tend to limit action to minimal adherence to the requirements of written rules (Gaa 2007 ). Although SOX-style "legislated ethics" (Rockness and Rockness 2005 ) may diminish the attractiveness of engaging in corporate fraud by changing the risk and payoff dynamics, the compliance perspective that results may tend to limit action to minimal adherence to the requirements of written rules (Gaa 2007 ).…”