Ethical Behaviour: Improving Auditor Performance Through Workplace Spirituality and Local Cultural Values – Evidence from Village Credit Institutions in Denpasar, Indonesia

I Gusti Ngurah Sanjaya, Anak Agung Bagus Amlayasa and Ni Wayan Sitiari

Economic Studies journal, 2026, issue 2, 46-65

Abstract: Ethical behaviour in the context of auditing is crucial for enhancing auditor performance and integrity. The increasing complexity of the work environment encourages the need for a deeper understanding of the factors that influence ethical behaviour, including Balinese spirituality and cultural values. This study aims to investigate the influence of ethical behaviour on auditor performance, while also exploring the role of Workplace Spirituality and Balinese cultural values as supporting factors. This study employs a cross-sectional survey approach, conducted at Village Credit Institutions (VCI) in Denpasar, involving 108 auditors as the sample. The data was analysed using SmartPLS 4.0 to test the relationships between variables. The results of the study show that ethical behaviour serves as a complete mediator between Workplace Spirituality and Balinese cultural values in auditor performance. Workplace Spirituality and Balinese cultural values do not have a direct significant impact on auditor performance. These findings confirm the importance of ethical behaviour in enhancing auditor performance and demonstrate that Balinese spirituality and cultural values play an essential role in shaping ethical behaviour in the workplace. This research provides new insights into the relationship between ethical behaviour, spirituality, and Balinese cultural values, and suggests practical implications for policy development and auditor training in microfinance institutions.

JEL-codes: M40 M42 (search for similar items in EconPapers)
Date: 2026
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