The Impact of Appreciation and Anonymity Guarantee on Auditee Reporting Intentions

• In Event: Whistleblowing and Auditee Reporting Intentions

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 fraud type observed. Results suggest that in the asset misappropriation case, 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 financial statement fraud is observed, the auditee’s reporting intention is not significantly influenced by the level of appreciation displayed or an anonymity guarantee.

Author

• Aaron Wilson, Ohio University