Browsing by Author "Loke, Chew Har"

Ethics is important in any profession, including the accounting profession. Due to the accountability of the public sector, ethics of public sector auditors (PSAs) is paramount. Thus, this research firstly explores the level of ethical work climate (EWC) in the National Audit Department (NAD) in Malaysia. This is followed by an investigation on ethical culture as an antecedent of EWC. Furthermore, outcomes of EWC, specifically code commitment, organizational commitment, and work-related ethical behaviour, are determined. The data on all variables (i.e. EWC, ethical culture, code commitment, organizational commitment, work-related ethical behaviour) were collected using a questionnaire instrument based on a seven-point Likert scale. The questionnaires were distributed to the population of PSAs in all the NAD offices throughout the whole of Malaysia. The response rates were 66% and 78% for individual auditors and audit teams, respectively. A total of 61% and 70% of the questionnaires were useable for individuals and teams, respectively. Mean values, Ordinary Least Square (OLS) regressions and Hierarchical Linear Modelling (HLM) were the main statistical tests used in hypotheses testing. The findings revealed that EWC at the NAD is ethical. Next, the univariate regressions’ results indicated that ethical culture and its virtues are the antecedents of overall EWC and its components. However, based on the findings of multiple regressions, virtues of ethical culture: feasibility and transparency do not show significant influence on overall EWC and each of its components. Finally, findings from HLM provided evidence that overall EWC was significantly and positively associated with each of the outcomes: code commitment, organizational commitment, and work-related ethical behaviour. However, there were mixed results on the effect of individual components of EWC on each of the outcomes. The findings of this study, that the PSAs at the NAD are ethical, should be reassuring to the public and the government. Nevertheless, this study may also be useful to the NAD as the results reveal the components of EWC that could be further improved, as well as the virtues of ethical culture that could enhance EWC. Finally, this study highlights to the NAD, the component of EWC that should be promoted to consistently produce positive outcomes of code commitment, organizational commitment and work-related ethical behaviour of the PSAs.

The aim of this study is to explore the perception of Malaysian public sector auditors concerning performance audit. These auditors’ opinion are on whether performance audit is achievable, involvement of auditors in policy making, auditors’ professional judgment in expressing audit opinion, involvement of other experts in performance audit, constraints faced and the possibility of performance audit improving public administration. This study used the survey method to collect the data. The respondents were from the federal and state levels of the National Audit Department in Malaysia. Descriptive analysis was used to derive the percentages and mean values of the data collected. The results revealed that performance audit is achievable. The auditors should be given the opportunity to influence policy decisions. Public auditors are not the only profession to make audit judgment, but to team up with other groups of profession in undertaking a performance audit. Lack of cooperation and commitment from auditees in conducting a performance appeared to be the most severe constraint. Finally, respondents believe that the performance audit could achieve better public accountability, as well as be economical, efficient as well as effective in utilising public resources. In conclusion, the research findings provide some informative information to the researchers and practitioners particularly the government of Malaysia.