Investigating the Effect of Personal and Organizational Variables on Fraud Tolerance

Document Type : Research Paper

Authors

1 Assistant Professor of Accounting, Jahrom University, Jahrom, Iran

2 Department of Accounting, University of Isfahan, Isfahan, Iran.

Abstract

Objective: The purpose of the present study is to investigate the effect of personal and organizational constructs on fraud tolerance, considering the moderating role of perceived organizational ethical culture.
 
Method: The statistical population of this study includes accountants and chief financial officers (CFOs) of manufacturing companies listed on the Tehran Stock Exchange. The required data were collected using a survey method and standard questionnaires administered to 214 accountants and chief financial officers in 2024. In this research, structural equation modeling using the partial least squares method was employed for data analysis.
 
Results: The results of the hypothesis tests indicate that the constructs of moral disengagement and self-enhancing values have a positive and significant effect on fraud tolerance. Furthermore, there is a negative and significant relationship between the constructs of self-efficacy, self-transcending values, and perceived organizational ethical culture and fraud tolerance. In addition, no evidence was found for the moderating effect of perceived organizational ethical culture on the relationship between the personal constructs under study and fraud tolerance.
 
Conclusion: The results of this study indicate that, in identifying the roots of fraudulent behaviors in companies and assessing fraud risk, attention to personal and organizational constructs as factors influencing fraud tolerance can be beneficial.

Keywords

Main Subjects

References

ارجمندنیا، علی اکبر؛ حجازی، رضوان؛ بغزیان، آلبرت و اعتمادی، سارا (1398). بررسی تأثیر ایجاد حساب اجتماعی بر رفتار غیراخلاقی حسابداران: با نقش واسطه‌ای عدم پایبندی به اخلاق و احساس گناه. حسابداری ارزشی و رفتاری، 4(7)، 102-63. https://doi.org/10.29252/aapc.4.7.63
بیرامی، لاله؛ جهانگیرنیا، حسین؛ بنی مهد، بهمن؛ ایزدپور، مصطفی و مقدم، حسین (1404). اثرخودکارآمدی حسابرس بر ارزیابی ریسک تقلب با نقش میانجی خلاقیت بنیادی و رشد یافته حسابرس. دانش حسابداری و حسابرسی مدیریت، 14(54)، 250-239. https://www.jmaak.ir/article_23574.html
خدامرادی، الهه و حاجیها زهره (1395). نقش فرهنگ اخلاقی در عملکرد حسابرسان. فصلنامه اخلاق در علوم و فناوری، 11(3)، 130-125. http://ethicsjournal.ir/article-1-379-fa.html
خدیر، حسینعلی؛ غفوریان شاگردی؛ امیر و مهدوی‌پور، علی (1398). رابطه فرهنگ اخلاقی در موسسات حسابرسی با بی‌طرفی و استقلال. فصلنامه اخلاق در علوم و فناوری، 14(4)، 103-96. https://ethicsjournal.ir/article-1-1624-fa.html
خسروی فارسانی، زینب؛ بنی‌طالبی دهکردی، بهاره و جعفری، حمیدرضا (1402). ارائه مدلی برای توسعه انگیزش حسابداران بخش عمومی. مجله دانش حسابداری، 14(3)، 160-143. https://jak.uk.ac.ir/article_3598.html
رستمی‌نیا، رضا؛ حجازی، رضوان؛ طالب‌نیا، قدرت‌الله و برادران حسن‌زاده، رسول (1399). تأثیر منبع کنترل و تعهد سازمانی بر پذیرش رفتار ناکارآمد حسابرسی بر اساس تئوری رفتار برنامه ریزی شده. دو فصلنامه حسابداری ارزشی و رفتاری، ۵(۱۰)، ۱۲۹-۱۰۳. http://aapc.khu.ac.ir/article-1-631-fa.html
رضازاده، فرزانه؛ رضایی، فرزین وحمیدی، ناصر (1399). تأثیر خودکارآمدی، منبع‌کنترل و ویژگی‌های تاریک شخصیت بر گزارشگری مالی متقلبانه. دو فصلنامه حسابداری ارزشی و رفتاری، ۵(۱۰)، ۱۶۷-۱۳۱. https://doi.org/10.52547/aapc.5.10.167
سوری، حسین؛ کدیور، پروین؛ کرامتی، هادی و حسن‌آبادی، حمیدرضا (1398). بررسی ساختار عاملی، پایایی و روایی نسخه فارسی مقیاس عدم درگیری اخلاقی. راهبردهای شناختی در یادگیری، 7(12)، 32-17. https://doi.org/10.22084/j.psychogy.2019.17865.1859
نویدی عباسپور، ابراهیم و سلحشور، سولماز (1401). بررسی تأثیر تضاد نقش، باور به خودکارآمدی و حساسیت اخلاق حرفه‌ای حسابرسان بر عملکرد آنها با تأکید بر هوش عاطفی حسابرس، تحقیقات حسابداری و حسابرسی، 14(55)، 96-77. https://doi.org/10.22034/iaar.2022.162393
یزدی، زینب؛ بنی مهد، بهمن و نیکومرام، هاشم (1402). نقش تعدیل‌کنندگی جهت‌گیری فاصله قدرت، توانمندی ایگو و منبع کنترل بر رابطه بین فشار اخلاقی و اعتقادات اخلاقی در حرفه حسابداری. مجله دانش حسابداری، 14(4)، 30-1. https://jak.uk.ac.ir/article_3791.html
یزدی، سمیه؛ پورحیدری، امید و خدامی‌پور، احمد (1401). تأثیر نقش تعدیلی درک حسابرس از فرهنگ اخلاقی سازمان بر رابطه حرفه‌گرایی و قضاوت اخلاقی حسابرس. پیشرفت‌های حسابداری، 14(2)، 386-353. https://doi.org/10.22099/JAA.2023.45298.2289

References

Arjmandniya, A. A., Hejazi, R., Boghosian, A. & Etemadi Eidgahi S. (2019). Investigating the effect of constructing social accounts on accountants’ unethical behavior: with mediating role of moral disengagement and guilt. Journal of Value & Behavioral Accounting, 4(7), 63-102. https://doi.org/10.29252/aapc.4.7.63 [In Persian].
Aumentado, D. C., Balagtas, L. J., Cu, T. G., & Teng-Calleja, M. (2024). Follow the leader? The relationships among corrupt leadership, followers’ corruption tolerance, and workplace outcomes. Asian Journal of Business Ethics, 1-27. https://doi.org/10.1007/s13520-023-00189-y.
Bandura, A. (1986). Social foundations of thought and action. Englewood Cliffs, NJ, 1986(23-28), 2.‏ https://doi.org/10.4135/9781446221129.n6.
Beyrami, L., Jahangirnia, H., Banimahd, B., Izadpour, M., & Moghadam, H. (2025). The effect of auditor self-efficacy on fraud risk assessment with the mediating role of the auditor's fundamental and developed creativity. Journal of Management Accounting and Auditing Knowledge, 14(54), 239-250. www.jmaak.ir/article_23574 [In Persian].
Callaghan, C., & Papageorgiou, E. (2015). Gender differences in locus of control and student performance in the South African context of accounting studies. Meditari Accountancy Research, 23(3), 348-368.‏ https://doi.org/10.1108/MEDAR-02-2014-0018.
Çollaku, L., Ramushi, A. S., & Aliu, M. (2024). Fraud intention and the relationship with selfishness: the mediating role of moral justification in the accounting profession. International Journal of Ethics and Systems,‏ https://doi.org/10.1108/IJOES-10-2023-0220.
Dawson, J. F. (2014). Moderation in management research: What, why, when, and how. Journal of Business and Psychology, 29(1), 1-19.‏ https://doi.org/10.1007/s10869-013-9308-7.
DeBode, J. D., Armenakis, A. A., Feild, H. S., & Walker, A. G. (2013). Assessing ethical organizational culture: Refinement of a scale. The Journal of Applied Behavioral Science, 49(4), 460-484.‏ https://doi.org/10.1177/-0021886313500987.
DeZoort, F. T., & Harrison, P. D. (2018). Understanding auditors’ sense of responsibility for detecting fraud within organizations. Journal of Business Ethics, 149, 857-874.‏ https://doi.org/10.1007/s10551-016-3064-3.
Emby, C., Zhao, B., & Sieweke, J. (2019). Audit senior modeling fallibility: The effects of reduced error strain and enhanced error-related self-efficacy on audit juniors’ responses to self-discovered errors. Behavioral Research in Accounting, 31(2), 17-30.‏ https://doi.org/10.2308/bria-52471.
Farooqi, S., Abid, G., & Ahmed, A. (2017). How bad it is to be good: Impact of organizational ethical culture on whistleblowing (the ethical partners). Arab Economic and Business Journal, 12(2), 69-80.‏ https://doi.org/10.1016/j.aebj.2017.06.001.
Ganon, M. W., & Donegan, J. J. (2010). Microanomie as an explanation of tax fraud: A preliminary investigation. In Advances in Taxation, 123-143. https://doi.org/10.1108/S1058-7497(2010)0000019007.
Gong, T., & Wang, S. (2013). Indicators and implications of zero tolerance of corruption: The case of Hong Kong. Social Indicators Research, 112, 569-586. https://doi.org/10.1007/s11205-012-0071-3.
Hair, Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM). [Sage Publications].
Hunt, S. D., Wood, V. R., & Chonko, L. B. (1989). Corporate ethical values and organizational commitment in marketing. Journal of Marketing, 53(3), 79-90.‏‏ https://doi.org/10.2307/1251344.
Kaptein, M. (2011). From inaction to external whistleblowing: The influence of the ethical culture of organizations on employee responses to observed wrongdoing. Journal of Business Ethics, 98, 513-530.‏ 10.1007/s10551-010-0591-1.
Khedir, H. A., Ghafourian Shagerdi, A., & Mahdavipour, A. (2020). The relationship between ethical cultures in audit firms with objectivity & independence of auditors. Journal of Ethics in Science and Technology, 14(4), 96-103. https://ethicsjournal.ir/article-1-1624-fa.html [In Persian].
Khodamoradi, E., & Hajiha, Z. (2017). Role of ethical culture in auditor’s functions. Journal of Ethics in Science and Technology, 11(3), 125-130. http://ethicsjournal.ir/article-1-379-fa.html [In Persian].
Khosravi Farsani, Z., Banitalebi Dehkordi, B., & Jafari, H. R. (2023). Providing a model for developing the motivation of public sector accountants. Journal of Accounting Knowledge, 14(3), 143-160. https://jak.uk.ac.ir/article_3598.html?lang=en [In Persian].
Knechel, W. R., & Mintchik, N. (2022). Do personal beliefs and values affect an individual’s “fraud tolerance”? Evidence from the World Values Survey. Journal of Business Ethics, 1-27. https://doi.org/10.1007/s10551-020-04704-0.
Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS‐SEM: The inverse square root and gamma‐exponential methods. Information Systems Journal, 28(1), 227-261.‏ https://doi.org/10.1111/isj.12131.
Lee, S. C., Su, J. M., Tsai, S. B., Lu, T. L., & Dong, W. (2016). A comprehensive survey of government auditors’ self-efficacy and professional development for improving audit quality. Springer Plus, 5, 1-25.‏ https://doi.org/10.1186/s40064-016-2903-0.
Moore, C., Detert, J. R., Klebe Treviño, L., Baker, V. L., & Mayer, D. M. (2012). Why employees do bad things: Moral disengagement and unethical organizational behavior. Personnel Psychology, 65(1), 1-48.‏ https://doi.org/10.1111/j.1744-6570.2011.01237.x.
Nahar, H. S. (2018). Exploring future accountants’ academic fraud (in) tolerance: Oman evidence. Journal of Accounting in Emerging Economies, 8(1), 66-83. https://doi.org/10.1108/JAEE-04-2017-0050.
Navidi Abbaspour, E., & Salahshour, S. (2022). Investigating the effect of auditor’s role ambiguity, belief in self-efficacy and professional ethics sensitivity on their performance emphasizing emotional intelligence. Accounting and Auditing Research, 14(55), 77-96. https://doi.org/10.22034/iaar.2022.162393 [In Persian].
Oyerogba, E. O. (2021). Forensic auditing mechanism and fraud detection: The case of Nigerian public sector. Journal of Accounting in Emerging Economies, 11(5), 752-775.‏ https://doi.org/10.1108/JAEE-04-2020-0072.
Putri, N. P. A. W., Putra, I. N. W. A., Wirakusuma, M. G., & Suputra, I. D. G. D. (2022). The effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as moderating variable. Linguistics and Culture Review, 6(S1), 565-580.‏ https://doi.org/10.21744/lingcure.v6nS1.2108.
Rezazadeh, F., Rezaei, F., & Hamidi, N. (2021). The effect of self-efficacy, locus of control, and dark personality trait on fraudulent financial reporting. Journal of Value & Behavioral Accounting, 5(10), 167-131. https://doi.org/10.52547/aapc.5.10.167 [In Persian].
Rostaminia, R., Hejazi, R., Talebnia, Gh., & Baradaran Hasanzadeh, R. (2021). The effect of locus of control and organizational commitment on acceptance of dysfunctional audit behavior based on the theory of planed behavior. Journal of Value & Behavioral Accounting, 5(10), 129-103. http://aapc.khu.ac.ir/article-1-631-fa.html [In Persian].
Rotter, J.B. (1966). Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs: General and Applied, 80(1), 1-28. http://dx.doi.org/10.1037/h0092976.
Sánchez-Medina, A. J., Ramos-Montesdeoca, M., & Blázquez-Santana, F. (2024, April). Knowing the accounting fraudster: The influence of individual anomie and displacement of responsibility and moral justification as mediating variables. In Accounting Forum, 48(2), 201-224.‏ https://doi.org/10.1080/01559982.2022.2140887.
Schwartz, S. H. (1994). Are there universal aspects in the structure and contents of human values? Journal of Social Issues, 50(4), 19-45.‏ https://doi.org/10.1111/j.1540-4560.1994.tb01196.x.
Schwartz, S. H., & Sagiv, L. (1995). Identifying culture-specifics in the content and structure of values. Journal of Cross-Cultural Psychology, 26(1), 92-116.‏ https://doi.org/10.1177/0022022195261007.
Schwarzer, R., & Jerusalem, M. (1995). Generalized self-Efficacy scale. In J. Weinman, S. Wright, & M. Johnston, Measures in health psychology: A user’s portfolio. Causal and control beliefs, pp. 35-37. Windsor, UK: NFER-NELSON. https://doi.org/10.1037/t00393-000
Souri, H., Kadivar, P., Keramati, H., & Hassanabadi, H. (2019). The study of factor structure, reliability and validity of Persian version of the moral disengagement scale. Biquarterly Journal of Cognitive Strategies in Learning, 7(12), 17-32. https://doi.org/10.22084/j.psychogy.2019.17865.1859 [In Persian].
Tang, J., Tang, Z., & Cowden, B. J. (2017). Exploring the relationship between entrepreneurial orientation, CEO dual values, and SME performance in state–owned vs. nonstate–owned enterprises in China. Entrepreneurship Theory and Practice, 41(6), 883-908.‏ https://doi.org/10.1111/etap.12235.
Trevino, L. K. (1986). Ethical decision making in organizations: A person-situation interactionist model. Academy of Management Review, 11(3), 601-617.‏ https://doi.org/10.2307/258313.
Trevino, L. K. (1990). A cultural perspective on changing and developing organizational ethics. Research in Organizational Change and Development, 4(2), 195-230. [PDF].
Yakın, M., & Erdil, O. (2012). Relationships between self-efficacy and work engagement and the effects on job satisfaction: a survey on certified public accountants. Procedia-Social and Behavioral Sciences, 58, 370-378.‏ https://doi.org/10.1016/j.sbspro.2012.09.1013.
Yazdi, S., Pourheidari, O., & Khodamipour, A. (2023). The effect of the moderating role of the auditor’s understanding of the organization's ethical culture on the relationship between professionalism and the auditor’s ethical judgment. Journal of Accounting Advances, 14(2), 353-386. https://doi.org/10.22099/JAA.2023.45298.2289 [In Persian].
Yazdi, Z., Banimahd, B., & Nikoomaram, H. (2023). The moderating role of power distance orientation, ego strength, and locus of control on the relationship between ethical pressure and ethical beliefs in the accounting profession. Journal of Accounting Knowledge, 14(4), 1-30. https://jak.uk.ac.ir/article_3791.html [In Persian].
Zhang, J., Chiu, R., & Wei, L. 2009. On whistleblowing judgment and intention: The roles of positive mood and organizational ethical culture. Journal of Managerial Psychology, 24(7), 627–49. 10.1108/02683940910989020

Files

History

  • Receive Date: 16 November 2024
  • Revise Date: 08 January 2025
  • Accept Date: 09 February 2025

Share

How to cite

Statistics