Research of Accounting and Governance
Vol. 2 No. 2 (2024): JULY 2024

Uncovering Ethical Behavior: A Causal Factors Perspective of Control Systems and Compensation

Wafa, Muhammad Husnul (Unknown)
Ghazali, Muhammad (Unknown)
Hidayati, Rini (Unknown)



Article Info

Publish Date
28 Jul 2024

Abstract

This research examines the effects of internal control, compliance, management remuneration, and work ethic on auditors' ethical behavior. The study involved 46 auditors from a public accounting firm in Central Jakarta, using purposive sampling. Both quantitative and descriptive statistical methods, along with multiple linear analysis, were employed. Data was collected through a questionnaire assessing internal control, compliance, management compensation, work ethic, and auditors' ethical behavior. Findings reveal that internal control and compensation significantly influence auditors' ethical behavior. However, management compensation alone does not have a significant effect. Work ethic also has a substantial impact on ethical behavior. Collectively, internal control, compliance, management compensation, and work ethic significantly affect auditors' ethical behavior. Managerial implications include the necessity for robust internal control systems to prevent unethical conduct and designing management compensation structures that do not incentivize unethical behavior.

Copyrights © 2024






Journal Info

Abbrev

rag

Publisher

Subject

Economics, Econometrics & Finance

Description

The Research of Accounting and Governance (RAG) is an open-access journal that applies theory developed from accounting and corporate governance research to actual academic-business conditions. Recognizing the intricate relationships between the many areas of business activity, RAG examines various ...