DOI

https://doi.org/10.25772/7YJP-6W34

Defense Date

2014

Document Type

Dissertation

Degree Name

Doctor of Philosophy

Department

Business

First Advisor

Dr. Ben Wier

Second Advisor

Dr. Alisa Brink

Third Advisor

Dr. Carolyn Norman

Fourth Advisor

Dr. D. Jordan Lowe

Abstract

This study examines the effects of using the internal audit function as a training ground for management and fraud magnitude on internal auditor fraud reporting decisions. Using a 2x2 between-participants experiment, the current study manipulates the use of the internal audit function as a management training ground (used as a training ground vs. not used as a training ground) and fraud magnitude (large fraud, defined as 30 percent of net income vs. small fraud, defined as one percent of net income). The results indicate that internal auditors may be less likely to report a fraud to their superior when the internal auditors are being groomed for management positions. No effect is found for fraud magnitude, as respondents indicated a similar willingness to report small frauds as large frauds. These findings contribute to the whistleblowing literature and the internal audit objectivity literature by demonstrating that undesirable repercussions associated with using the internal audit function as a management training ground can extend to the internal auditor fraud reporting decision.

Rights

© The Author

Is Part Of

VCU University Archives

Is Part Of

VCU Theses and Dissertations

Date of Submission

11-21-2014

Included in

Accounting Commons

Share

COinS