Whistleblowing practice in the public sector and internal audit effectiveness
The practice of whistleblowing has received increased worldwide attention since the collapse of Enron and Worldcom. In Malaysia, the Whistleblowing Protection Act (WPA) was introduced in 2010 by the government as one of the internal control mechanisms to mitigate issues of corruption, lack of int...
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| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2018
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| Subjects: | |
| Online Access: | http://eprints.unisza.edu.my/1374/1/FH03-FESP-19-22909.pdf http://eprints.unisza.edu.my/1374/ |
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| Summary: | The practice of whistleblowing has received increased worldwide attention since the collapse
of Enron and Worldcom. In Malaysia, the Whistleblowing Protection Act (WPA) was introduced in
2010 by the government as one of the internal control mechanisms to mitigate issues of corruption, lack
of integrity, malpractices and fraud, among others, in both the public and private sectors. Despite the
introduction of this Act, the implementation of whistleblowing practice in the public sector is still at an
early stage. This paper reviews the literature on internal audit in the public sector and examines the
factors associated with audit effectiveness in mitigating the incidents of fraud. The reviews result in a
proposal to suggest that the effectiveness of public sector internal audit is affected by the proficiency of
auditors, the independence of internal auditors and the quality of internal audit. This study also
proposes that the whistleblowing practice moderates the relationships between the factors and the
internal audit effectiveness. This conceptual paper employs the institutional theory and the theory of
justice in predicting the expected relationships. This paper contributes to the internal audit field by
providing an integrated conceptual framework regarding internal audit effectiveness and the role of
whistleblowing practice. The outcome of the proposed research is expected to provide new insights to
regulators, policy makers, auditors and the public on the role of whistleblowing in increasing internal
audit effectiveness, particularly in the public sector. |
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