Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud

According to Fraud Survey 2004 by KPMG Malaysia, 62 percent of respondents felt that fraud is a serious problem for Malaysian business. The survey finding also highlights the importance of implementing an independent communication channel for whistle blowing. Whistle blowing is one of the elements...

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Main Author:	Badrul Hisham, Mohd Yusoff
Format:	Thesis
Language:	eng eng
Published:	2010
Subjects:	HD28-70 Management Industrial Management
Online Access:	https://etd.uum.edu.my/2409/1/Badrul_Hisham_Mohd_Yusoff.pdf https://etd.uum.edu.my/2409/2/1.Badrul_Hisham_Mohd_Yusoff.pdf
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id	my-uum-etd.2409
record_format	uketd_dc
spelling	my-uum-etd.24092022-11-23T00:15:14Z Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud 2010 Badrul Hisham, Mohd Yusoff Fadzil, Faudziah Hanim College of Business (COB) College of Business HD28-70 Management. Industrial Management According to Fraud Survey 2004 by KPMG Malaysia, 62 percent of respondents felt that fraud is a serious problem for Malaysian business. The survey finding also highlights the importance of implementing an independent communication channel for whistle blowing. Whistle blowing is one of the elements in corporate governance and it can play an important role in reducing fraud occurrence. Internal auditors can help Audit Committee in creating effective whistle blowing program that protect the employees and enable organisations to address fraud before they become public knowledge. This study examines the extent of whistle blowing complaints received by internal auditors based on survey responses from 213 Chief Audit Executive of Malaysian Public Listed Companies (PLC). Within the past two years, only 18 percent of Chief Audit Executive surveyed received genuine whistle-blowing complaints from internal whistle blower and only 14 percent of Chief Audit Executive surveyed received genuine whistle-blowing complaints from external whistle blower. The lack of whistle blowing program implementation in Malaysian companies is possibly due to absence of legislation in Malaysia that forces the establishment of whistle blowing program. Although the Securities Industry Act (1983) and Capital Market and Services Act 2007 (CMSA) provides the employees, independent auditors and key officers' protection when they whistle blow, the act does not compel a whistle blowing program. On the effectiveness of whistle blowing program, this study shows the CAE perception about the effectiveness of code of ethics in their organisation is negatively related to the fraud occurrence, that is the more the code is perceived as effective, the lesser fraud incidents will occur. 2010 Thesis https://etd.uum.edu.my/2409/ https://etd.uum.edu.my/2409/1/Badrul_Hisham_Mohd_Yusoff.pdf text eng public https://etd.uum.edu.my/2409/2/1.Badrul_Hisham_Mohd_Yusoff.pdf text eng public http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000763461 Ph.D. doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Fadzil, Faudziah Hanim
topic	HD28-70 Management Industrial Management
spellingShingle	HD28-70 Management Industrial Management Badrul Hisham, Mohd Yusoff Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud
description	According to Fraud Survey 2004 by KPMG Malaysia, 62 percent of respondents felt that fraud is a serious problem for Malaysian business. The survey finding also highlights the importance of implementing an independent communication channel for whistle blowing. Whistle blowing is one of the elements in corporate governance and it can play an important role in reducing fraud occurrence. Internal auditors can help Audit Committee in creating effective whistle blowing program that protect the employees and enable organisations to address fraud before they become public knowledge. This study examines the extent of whistle blowing complaints received by internal auditors based on survey responses from 213 Chief Audit Executive of Malaysian Public Listed Companies (PLC). Within the past two years, only 18 percent of Chief Audit Executive surveyed received genuine whistle-blowing complaints from internal whistle blower and only 14 percent of Chief Audit Executive surveyed received genuine whistle-blowing complaints from external whistle blower. The lack of whistle blowing program implementation in Malaysian companies is possibly due to absence of legislation in Malaysia that forces the establishment of whistle blowing program. Although the Securities Industry Act (1983) and Capital Market and Services Act 2007 (CMSA) provides the employees, independent auditors and key officers' protection when they whistle blow, the act does not compel a whistle blowing program. On the effectiveness of whistle blowing program, this study shows the CAE perception about the effectiveness of code of ethics in their organisation is negatively related to the fraud occurrence, that is the more the code is perceived as effective, the lesser fraud incidents will occur.
format	Thesis
qualification_name	Ph.D.
qualification_level	Doctorate
author	Badrul Hisham, Mohd Yusoff
author_facet	Badrul Hisham, Mohd Yusoff
author_sort	Badrul Hisham, Mohd Yusoff
title	Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud
title_short	Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud
title_full	Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud
title_fullStr	Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud
title_full_unstemmed	Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud
title_sort	role of internal auditors in whistle blowing program to reduce corporate fraud
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2010
url	https://etd.uum.edu.my/2409/1/Badrul_Hisham_Mohd_Yusoff.pdf https://etd.uum.edu.my/2409/2/1.Badrul_Hisham_Mohd_Yusoff.pdf
_version_	1776103597524647936

Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud

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