Purpose The purpose of this paper is to explore the perception of public sector auditors on performance audit in Malaysian public sector entities. In particular, this study elicits the respondents' opinions on the elements of performance audit, the need for involvement of auditors in policy making, relevant experts to undertake a performance audit, major constraints in carrying out performance audit
Purpose The purpose of this paper is to empirically test Arnaud’s (2010) ethical climate index (ECI) of measuring ethical work climate (EWC) in the context of Malaysian public sector auditors (PSAs). Design/methodology/approach EWC is conceptualized as four main components with two sub-components. Questionnaires were distributed to the population of PSAs in the Malaysian National Audit Department (NAD). Factor analysis (principal component analysis [PCA]) was used to verify the components of EWC. Findings Results from PCA revealed that EWC, indeed, has four main components. Therefore, the findings of this study provide empirical evidence that validates Arnaud’s (2010) EWC model, although tested on PSAs in Malaysia. Research limitations/implications This paper has a limited purpose, which is to test whether the ECI could be applied to PSAs in Malaysia to derive the original four main components of Arnaud’s EWC. Thus, this study does not evaluate the EWC of PSAs or determine causal relationships between EWC and other variables; these are left to future studies. Practical implications The findings of this study confirm that Arnaud’s (2010) ECI is sufficiently resilient to be applied to the context of PSAs in Malaysia. Hence, future studies could use this index to measure EWC not only in the public sector but also in the private sector. Future research could also further test this index in different contexts. Originality/value Arnaud’s (2010) ECI was originally applied in the context of the private sector in a developed country. Hence, this study adds value by extending the ECI to the public sector in a developing country, Malaysia.
Purpose The purpose of this paper are twofold. Firstly, it explores the extent to which ethical work climate (EWC) is prevalent among public sector auditors at the National Audit Department (NAD) of Malaysia. Secondly, it examines the relationship between EWC and the work-related ethical behaviour of public sector auditors in the NAD of Malaysia. Design/methodology/approach This study used a postal questionnaire survey, which was distributed to the public sector auditors in Malaysia. A total of 823 responses from public sector auditors in 213 audit teams was received, constituting a 66% and 78% response rate, respectively. To achieve the first research objective, the responses were analysed using descriptive statistical analysis, including mean values and mean value ranking. For the second objective, hierarchical linear modelling (HLM) statistical software was used for the cross-level data analysis. Findings The results reveal a moderate level of the overall EWC at the NAD. The overall EWC at the team level also has a positive significant influence on work-related ethical behaviour assessed at the individual level of auditors. In terms of the individual components of the EWC, multivariate regression analysis of HLM shows collective moral (CM) sensitivity and CM judgement have a significantly positive relationship with work-related ethical behaviour, whereas CM motivation has a negatively significant relationship with work-related ethical behaviour. Practical implications The empirical evidence on the level of EWC and its components implies that there is room for improvement in the ethical climate in the NAD. The finding is important for the NAD to design necessary measures to enhance the EWC, including tightening the auditors’ code of ethics and organizing ethics-related seminars, training and workshops for the auditors. The result on the positive influence of CM sensitivity and CM judgment of work-related ethical behaviour of public sector auditors is also crucial for the NAD to further inculcate moral sensitivity and moral judgment among the public sector auditors. Originality/value This study is among the initial research that uses Arnaud’s EWC model in assessing the influence of EWC on ethical behaviour, particularly in the context of public sector organization of a developing country, i.e. Malaysia.
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