A legal scrutiny on the auditors' role to whistle-blow

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Abstract

Auditors examine companies’ accounts and submit auditors’ reports. However, these duties augmented in recent years due to constant changes in the corporate atmosphere. Notably, many fraudulent activities and ventures were planned with the ingenious work and skill of auditors. Therefore, the guiding principles for auditors are responsibility and accountability so that auditors do not become part of the fraudulent activities. Thus, this study examines auditors’ role to whistle-blow any wrongful activities in a company. The study then examines the issues concerning auditors’ role to whistle-blow to determine whether auditors are able to act as effective watchdogs. This is necessary due to the spate of financial scandals that occurred in Malaysia. Essentially, corporate law must ensure that the interests of shareholders and stakeholders are considered and hence the imposition of the duty on auditors to whistle-blow. Therefore, auditors must bear in mind the interests of the shareholders and stakeholders by countering the financial scandals through whistle-blowing. This can be achieved if auditors carry out their role to whistle-blow effectively. Additionally, the laws must be tightened to ensure that the duty to whistle-blow is legally realistic.
Original languageEnglish
Pages (from-to)149-162
Number of pages14
JournalMalaysian Journal of Law and Society
Volume15
Publication statusPublished - 2011
Externally publishedYes

Keywords

  • Auditors
  • Whistleblower

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