Perceptions of justice as a catalyst for whistle-blowing by trainee auditors in South Africa

Faeeza Soni, Warren Maroun and Nirupa Padia

Meditari Accountancy Research, 2015, vol. 23, issue 1, 118-140

Abstract: Purpose - – This study aims to use organisational justice theory to examine variations in the propensity of trainee auditors in South Africa to blow the whistle internally on misconduct by an engagement leader. Design/methodology/approach - – Three vignettes describing high and low states of distributive, procedural and interactive justice are presented to a sample of trainee auditors. A questionnaire is used to gauge the likelihood of trainees blowing the whistle after taking into account a number of control variables. Preliminary results are analysed using parametrict-tests and one-way ANOVA’s. Findings - – The study finds that the likelihood of trainee auditors reporting an engagement leader for misconduct increases when there is a high level of distributive, interactional and procedural justice. Gender, age, seniority, the importance of religion and performance ratings does not appear to have an effect on the propensity to whistle-blowing. Research limitations/implications - – The growing importance of an effective mechanism for reporting malfeasance is reflected in both the academic and professional literature. Prior research has found that ensuring high levels of organisational justice is one means of promoting whistle-blowing in a professional setting. This paper argues that the same applies to trainee auditors. In turn, this suggests that audit firms wanting to implement sound audit quality control practices should be mindful of how their whistle-blowing policies are implemented and perceived by their junior staff. Originality/value - – This paper is the first to apply organisational justice theory in a South African setting with specific reference to trainee auditors. As such, it makes an important contribution to the literature on whistle-blowing. The findings should also be of interest to the audit profession when seeking to implement effective quality control and monitoring systems, as required by the relevant professional standards.

Keywords: Business ethics; External audit; Organisational justice; Trainee auditors; Whistle-blowing (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:medarp:v:23:y:2015:i:1:p:118-140

DOI: 10.1108/MEDAR-01-2014-0004

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