The Impact of Appreciation and Anonymity Guarantee on Auditee Reporting Intentions

• In Event: Fraud and Professional Skepticism

Abstract

This study extends earlier research on factors that influence the auditee’s intention to report questionable behavior to the external auditor. We examine the effect of the external auditor’s appreciation and anonymity guarantee as well as the auditee’s perceived seriousness (type of misconduct committed - control deficiency vs. fraud) of the observed behavior. Results suggest that in the low seriousness case (control deficiency), the auditee is most likely to report the behavior to the external auditor when s/he shows appreciation and provides an anonymity guarantee. In contrast, when the behavior is perceived to be more serious (fraud), the auditee’s reporting intention is not significantly influenced by the level of appreciation displayed or an anonymity guarantee.

Authors

• Aaron B Wilson, Washington State University

• Bernard Wong-On-Wing, Washington State University