Analyzing the Relationship Between Individual Ethics and the Disclosure of Errors in Audit Reports Using the DEMATEL Method

Abstract

The objective of this study is to examine the relationship between individual ethics and the disclosure of audit report errors using the DEMATEL method. This applied, mixed-method study involved a qualitative meta-synthesis of 37 selected articles out of 279 reviewed publications. In the quantitative phase, a DEMATEL-based questionnaire was developed and distributed to 20 certified auditors with over 10 years of professional experience. The data were analyzed using matrix-based causal relationships and categorized into five dimensions: causal conditions, context, intervening conditions, strategies, and consequences. The results revealed that the most influential factors were "inherited and acquired personality and behaviors," "auditors’ decision-making and professional judgment," "moral sensitivity and courage," and "commitment and responsibility." Conversely, the most affected factors included "organizational laws and requirements," "supportive rules and incentives," "individual reactions," "community norms and values concerning whistleblowing," and "organizational structures of audit institutions." Among all variables, auditors’ decision-making and judgment had the highest impact on whistleblowing tendencies. The findings suggest that fostering audit error reporting requires a synergistic integration of personal ethics with supportive organizational and cultural environments. Establishing secure, reward-based systems and nurturing a strong sense of professional commitment among auditors can enhance ethical behavior and the willingness to report detected misconduct in audit processes.