Nor Azmi Ramli, Ainul Mohsein Abdul Mohsin, Arfah Salleh and Noor Shakirah Mat Akhir
Corruption is a global phenomenon. The 2016 Organisation for Economic Co-operation and Development (OECD) Report and the 2019 Malaysia National Anti-Corruption Plan (NACP) Report…
Abstract
Purpose
Corruption is a global phenomenon. The 2016 Organisation for Economic Co-operation and Development (OECD) Report and the 2019 Malaysia National Anti-Corruption Plan (NACP) Report stated that the government sector most prone to corruption is procurement. The purpose of this study is to explore what drives the government procurement practitioners to commit corruption or uphold integrity. The novelty of this research is it focusses on the human aspect based on a human model which comprises both the physical and non-physical dimensions. It incorporated four theories which are the virtue theory, transaction cost theory (TCT), human governance (HG) philosophy and Al-Ghazali theory of the soul to design the research framework.
Design/methodology/approach
This approach to counteract corruption is through the inner “Self” (spirituality) and is not limited or bound to processes, procedures, rules, regulations, systems and structures.
Findings
The findings obtained through the phenomenological method suggest that the Inciting Soul is the driver behind corruption. This happens when intellect (‘Aql) becomes submissive to appetition (Shahwa) and self-assertion (Ghadab) resulting in vice characters. In upholding integrity, Soul-at-Peace is the driver where intellect dominates appetition and self-assertion leading to virtue characters. The HG philosophy is what encapsulates the taxonomy of virtue character.
Research limitations/implications
This research concentrates only on understanding why corruption happens among those with authority. Nevertheless, this research did not delve into the inculcation of HG. Therefore, the authors would suggest for future research is to explore techniques to inculcate the ability of an individual to exercise all the necessary inner “Self” functions (to curb corruption) without having intervention from an external authority.
Practical implications
Corruption is a global phenomenon. The 2016 OECD Report and the 2019 Malaysia NACP Report found that procurement is the government sector most prone to corruption.
Originality/value
The novelty of this research is its focus on the human aspect based on the model of a human comprising both the physical and non-physical dimensions. The theoretical framework integrates the virtue theory, TCT, HG philosophy and Al-Ghazali theory of the Soul.
Details
Keywords
Norashikin Kamarudin, Zubaidah Zainal Abidin and Malcolm Smith
Audit helps both shareholders and stakeholders to make informed decisions about future directions, based on how the company is performing. The issue of audit exemption among small…
Abstract
Purpose
Audit helps both shareholders and stakeholders to make informed decisions about future directions, based on how the company is performing. The issue of audit exemption among small companies has been addressed in studies in the UK, Australia and Singapore, together with several others, while Malaysia still legally obligates all companies, irrespective of their size, to be audited annually. The purpose of this exploratory study is to explore the factors associated with a push for audit exemption among small to medium‐sized enterprises (SMEs) in Malaysia.
Design/methodology/approach
A survey of SMEs in Malaysia's Klang Valley is conducted to examine their perceptions of audit value, audit burden and audit costs, and their implications for the acceptance of the current audit provisions.
Findings
After follow‐ups the survey yields a response rate of 83 percent, with 360 valid responses received. The results indicate that all three factors have a significant relationship with the level of acceptance of audit exemption. Their preferred audit exemption threshold is also presented.
Research limitations/implications
The results from this study provide useful information for policy makers, auditors and directors of small companies in regards to audit exemption.
Originality/value
The results of the study provide new information for policy makers, auditors and directors of small companies, with implications for future regulation on audit exemption.