Does Auditors’ Role Influence their Ethical Environment?: Examining the Mediating Roles of Organizational Fit

Document Type: Original Research


Faculty of Business, President University, Cikarang, Indonesia


The objective of this study is to investigate the influence of role to ethical environment and organizational fit as the mediating variable in public accounting firms in Indonesia. 101 auditors from 9 international public accounting firms were participated as participants in our online questionnaires. To test the hypothesis of the study, SEM SmartPLS with WarpPLS version 3.0 software was used to process the data. The result of the study showed that role variable is positively associated with ethical environment and also organizational of fit was mediated the relationship between role and ethical environment. This study is expected to build better understanding to public accounting firms the importance to build the ethical environment in their organizations.


Ambrose, M. L., Arnaud. A., & Schminke, M. (2008). Individual Moral Development and Ethical Climate: The Influence of Person-organization Fit on Job Attitudes. Journal of Business Ethics, 77, 323-333.
Ardts, J., Jansen, P. & Van Der Velde, M. (2001). The Breaking in of New Employees: Effectiveness of Socialization Tactics and Personnel Instruments. Journal of Management Development, 20(2), 159-178.
Baron, R. M., & Kenny, D. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Consideration. Journal of Personality and Social Psychology, 51(6), 1173-1182.
Bobek, D., & Radtke, R. (2007). An Experiential Investigation of the Ethical Environment of Tax Professionals. Journal of the American Taxation Association, 29(2), 63-84.
Bobek, D., Hageman, A. M., & Radtke, R. R. (2015). The Influence of Roles and Organizational Fit on Accounting Professionals’ Perceptions of their Firms’ Ethical Environment. Journal of Business Ethics, 126, 125-141.
Booth, P. & Schulz, A. (2004). The Impact of an Ethical Environment on Managers' Project  Evaluation Judgments under Agency Problem Conditions. Accounting, Organizations and Society, 29 (5–6): 473–488.
Cable, D. M. & Judge, T. A. (1996). Person-organization Fit, Job Choice Decisions, and Organizational Entry. Organizational Behavior and Human Decision Processes, 67, 294-311.
Chatman, J. A. (1991). Matching People and Organizations: Selection and Socialization in Public Accounting Firms. Administrative Science Quarterly, 36, 459-484.
DeRenzo, E. G. (2005). Individuals, Systems, and Professional Behavior. Organizational Ethics, 44–58.
Hair, J., Black, W., Babin, B., & Anderson, R. (2011). Multivariate Data Analysis: A Global Perspective. New Jersey: Pearson.
Hulland, J. (1999). Use of Partial Least Squares (PLS) in Strategic Management Research: A Review of Four Recent Studies. Strategic Management Journal, 20(2), 195-204.
Kaveh, M., Khalili, M., Ghorbani, A., & Soroush, M. (2014). Professional Ethics in Accounting and Auditing. World Essays Journal. 1(2), 85-93.
Keller, R. T. (1997). Job involvement and organizational commitment as longitudinal predictors of job performance: A study of scientists and engineers. Journal of Applied Psychology, 82, 539-545.
Kristof, A. L. (2000). Perceived Applicant Fit: Distinguishing between Recruiters Perceptions of Person-job and Person-organization Fit. Personnel Psychology, 53, 643-671.
Maas. V. S., & Gonzalez, R. T. (2011). Subjective Performance Evaluation and Gender Discrimination. Journal of Business Ethics, 101: 667-681.
Martinov-Bennie, N., & Pflugrath, G. (2009). The strength of An Accounting Firm’s Ethical Environment and the Quality of Auditors’ Judgments. Journal of Business Ethics, 87, 237-253.
Morley, M. J. (2007). Person-Organization Fit. Journal of Managerial Psychology. 22(2), 109-117.   
Nunnaly, J. C. (1967). Psychometric Theory. New York: McGraw-Hill.
Podsakoff, P. M., Mackenzie, S. B., Lee, J. L., & Podsakoff, N. P. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology, 88, 879-903.
Rae, K., Subramaniam, N., & Sands, J. (2008). Risk Management and Ethical Environment: Effects on Internal Audit and Accounting Control Procedures. Journal of Applied Management Accounting Research, 6(1), 11-30.
Saks, A. M. & Ashforth, B. E. (1997). A Longitudinal Investigation of the Relationships between Job Information Sources, Applicant Perceptions of Fit, and Work Outcomes. Personnel Psychology, 50, 395-426.
Shafer, W., & Wang, Z. (2011).Effects of Ethical Context and Machiavellinism on Attitudes toward Earnings Management in China. Managerial Auditing Journal, 26(5), 372-392.
Stuebs, M., & Wilkinson, B. (2010).Ethics and the Tax Profession: Restoring the Public Interest Focus. Accounting and the Public Interest, 10, 13-35.
Trevino, L. K., Weaver G. R.,& Brown M. E. (2008). It’s Lovely at the Top: Hierarchical Levels, Identities, and Perceptions of Organizational Ethics. Business Ethics Quarterly 18(2), 233–252.       
Verquer, M.L., Beehr, T.A and Wagner, S.H. (2002), A Meta-Analysis of Relations between Person–Organization Fit and Work Attitudes. Journal of Vocational Behavior, 63, 473–489
Weaver, G. R., Trevino, L. K. & Cochran, P. L. (1999). Corporate Ethics Programs as Control Systems: Influences of Executive Commitment and Environmental Factors. Academy of Management Journal, 42(1), 41-58.