Malaysian Institute Of Accountants Research Articles

Navigating Audit Quality in the Era of COVID-19: The Differential Impact of Big 4 versus Non-Big 4 Firms

This research examines the effect of covid-19 on audit quality, the moderating effect of big 4 and non-big 4. In addition, auditors’ responses to these changes are explored. The research employed a quantitative methodology through a questionnaire survey. Auditors were asked to state their agreement to statements related to audit quality on a five-point Likert scale. Based on the statistic in the Malaysian Institute of Accountants (MIA), there are 35,866 members in Malaysia. The result revealed that auditing standard is a necessity that must be adhered to by auditors at all time as there exist a positive and strong statistical relationship between the covid-19 and audit quality with correlation coefficient p-value = 0.000 < 0.05. Due to this pandemic, the limitation is to distribute the questionnaire to the auditors. The auditors do not provide appropriate feedback and sign when questions are not correctly read. This research will be beneficial for auditors and audit firms because audit quality will be affected during this covid-19. With this study, the auditors will be more prepared to deal with any crisis. While other researchers focus more on the crisis that affects audit quality, this study examines covid-19 on audit quality with the moderating effect of big 4 and non-big 4.

Measuring Ethical Behavior of Accounting Graduates in Malaysia: Comparison between Perceptual Statements and Vignettes

The failure of accountants/auditors to uphold positive values and maintain ethical behavior while performing professional services has been widely discussed. Most future accountants in Malaysia are accounting graduates from Malaysian Institute of Accountants (MIA) accredited universities. Previous studies have found that ethical culture at the workplace will influence the ethical behavior of an individual. Previous studies have measured ethical behavior using vignettes scenarios and perceptual statements. Thus, the study has two objectives, and they are firstly to empirically assess the impact of an ethical workplace culture on the ethical behavior of these graduates and secondly to compare the statistical results of two different measurements of ethical behavior using perceptual statements and vignettes. To achieve both objectives, SmartPLS 4 was utilized to examine the impact of ethical culture at workplace on the ethical behavior of accounting graduates using vignette scenarios and perceptual statements. This study involved 344 samples of accounting graduates from MIA-accredited universities, and path analysis was performed to test the hypotheses. The findings demonstrate a positive relationship between the ethical workplace culture and ethical behavior among accounting graduates, regardless of whether the ethical behavior was measured using vignette scenarios or perceptual statements. However, it was found that the relationship of ethical culture at the workplace and ethical behavior measured by perceptual statements provides a better explanation of the relationship between ethical behavior and workplace culture, as evidenced by its higher path coefficient, larger effect size, and more explanatory power. as opposed to the relationship of ethical culture at workplace and ethical behavior measured by perceptual statements. Taking these results into account, researchers are advised to choose the measurement of ethical behavior carefully and to ensure that the research instruments used are appropriate for the complexity of the phenomenon being studied, which improves the precision and dependability of research results.

Do Regulatory Incentives Matter in Persuading Companies to Submit XBRL Reports Voluntarily?

This study aims to investigate how regulatory incentive for Extensible Business Reporting Language (XBRL) affect the relationship between intention to use and usage behaviour when it comes to filing submissions. Using a quantitative research method, a structured questionnaire was distributed to the Malaysian Institute of Accountants (MIA) members who are involved in the preparation and submission of filings to Suruhanjaya Syarikat Malaysia (SSM). The data was examined using structural equation modelling with Smart PLS 3.2.9 after 237 questionnaires were successfully gathered. Results indicate that XBRL regulatory incentives strengthen the positive relationship between XBRL filing intention to use and usage behaviour. The study also discovered that intent to use significantly impacts XBRL filing behaviour. In comparison to perceived usefulness, perceived ease of use was found to have a greater influence on XBRL filing intention. The relationship between attitude and intention to use XBRL filings, on the other hand, has not been seen to have any significant effect. Keywords: Regulatory Incentive, XBRL, MBRS, Usage Behaviour, Intention to Use.

Issues and Challenges of Adoption of IFRS for SMEs in Malaysia

The purpose of this research is to look into issues and challenges associated with the adoption of International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMEs) or so-called MPERS (Malaysian Private Entity Reporting System). Using keywords like "IFRS for SMEs," "MPERS in Malaysia," and so on, this study examines existing literature in the form of articles in the Emerald database, as well as press releases and publications published by the Malaysian Institute of Accountants (MIA). The MPERS version of IFRS is a shortened version of the complete IFRS. It reduces the substance of the whole IFRS by about 85%. Certain topics are excluded because they are not normally relevant to SMEs. SMEs, on the other hand, still consider IFRS for SMEs to be excessively complicated. MPERS is a performance-based standard, not a cost-based one. Almost everything must be of reasonable value. As a result, businesses owning investment properties or biological assets will have to pay extra for the valuation of these assets at fair value. For preparers, there are two major obstacles to overcome. Constant changes in standards, as well as a scarcity of skilled accountants, are also issues. Some data suggests that the decision usefulness model is inappropriate for smaller businesses. SMEs have a small number of account users, lack accounting competence to deal with complexity, and are managed by their owners. Furthermore, for SMEs, a reporting approach focused on stewardship and employing simplified historical cost accounting would be more appropriate.

The influence of Hofstede’s cultural dimension on tax compliance behaviour of tax practitioners

PurposeThe purpose of this paper is to determine whether Hofstede’s cultural dimensions have a significant relationship with ethical decision-making among tax practitioners while performing their duties in ensuring tax compliance among taxpayers.Design/methodology/approachA structured questionnaire was used to collect data from tax practitioners in the state of Terengganu, Malaysia. Two hundred questionnaires were distributed via Google Forms and email to tax practitioners who were selected from the Inland Revenue Board of Malaysia website using a mixture of systematic random and snowball sampling approaches. The Statistical Package for Social Sciences software program was used to analyse the collected data.FindingsThe results show that power distance (PD), individualism (IND) and uncertainty avoidance (UAV) have a significant relationship with ethical decision-making, whereas masculinity (MAS) has no significant relationship with ethical decision-making among tax practitioners while carrying out their duties. The positive relationship of PD and of IND with decision-making behaviour indicates that ethical decision-making is highly practised in a low PD and low IND culture rather than in a high PD and high IND culture. In contrast, UAV shows a negative beta sign, which indicates that tax practitioners tend to practise ethical decision-making in a high UAV culture.Originality/valueThis study fills a gap in the literature in regard to the influence of culture on tax compliance particularly among tax practitioners in Malaysia. The study shows how culture is related to the decision-making practices of tax practitioners while performing their role as an intermediary between their clients and the government. It is worthwhile to examine the decision-making of tax practitioners because the results of such an examination not only provide some insights into the professional practices of accountants that will be of interest to the relevant authorities such as the Malaysian Institute of Accountants, they also offer some information that will be of assistance to higher learning institutions in formulating accounting programmes to produce the future generation of accountants.

Embracing digitalisation of the profession and practice: MIA’s walking the tech talk

Study level/applicability Undergraduate courses: Auditing, Leadership, Management accounting. Postgraduate courses: Leadership, Management accounting. Subject area Auditing, Leadership, Management accounting Case overview This case documents the journey of a professional accountancy organisation, namely, the Malaysian Institute of Accountants (MIA) and document the MIA’s journey on the establishment of digital blueprint for the accounting profession in Malaysia including some major milestone in innovating audit evidence-gathering technique by introducing e-confirm for auditing bank confirmation in Malaysia. This case highlights the significant role played by a lady chief executive officer (CEO) in embarking into the digitalisation of the accountancy profession and practice in Malaysia. While the ultimate objective of digital blueprint is to transform the accounting and auditing practices in Malaysia, the CEO has led by example by embedding digitalisation within MIA’s practices itself. Expected learning outcomes The learning outcome of this paper are as follows: to develop students’ understanding on the right attitudes, skills and characters that a successful leader should possess in contemporary business environment by focusing on dilemma and stereo-typing faced by women leaders; to develop the students’ understanding on the changes in business environment particularly the rise of digital technology that affecting the ways in which accounting functions in organisations; to encourage students to be aware that technical accounting knowledge is just one of the key success factors in the career of a professional accountant. The case offer insight into accountants’ role in digital environment and the development needed for accounting profession; to demonstrate how auditing process can benefit from the advancement in technology; and to encourage critical discussion on the development of accounting profession in Malaysia. The case aims to develop students’ critical discussion on the roles of MIA as a regulator of accounting profession and to appreciate historical development of accounting profession in Malaysia. The case also aims to encourage students to realise the existence of other professional accounting bodies, accounting practitioners and academic accountants, and together with MIA, they play significant role in shaping the accounting profession in Malaysia. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Social implications The case has a strong implication on the role of effective leaders in ensuring that significant efforts involved in digitalisation journal, a vital need for the accountancy professional to continue to be a relevant profession, is a success. Subject code CSS 1: Accounting and Finance. Keywords Women leadership, Digitalisation, Professional accountancy organisation, Electronic bank confirmation, Malaysia

Emerging Technologies To Detect Fraud in Audit Testing: A Perception of Malaysian Big Four Auditors

Fraud surveys performed over the past decade remained at worrying levels in Malaysia. The Malaysian 1MDB scandal has attracted worldwide attention which severely damaged the local auditing profession, worsening the credibility crisis in the sector. The rise of emerging technologies is seen to bridge the expectation gap in strengthening stakeholder confidence in auditors by easing fraud detection. Unfortunately, a past study in Malaysia on task-technology fit between auditor’s knowledge and perceived importance on technology revealed a gap. A report by the Malaysian Institute of Accountants in 2019 highlighted that the lagging factor of emerging technology adoption in Malaysia is due to auditors’ non-realization of its usefulness in fraud detection. Furthermore, to render emerging technology as a useful medium for data extraction and analysis higher levels of scepticism is required. Besides, focus is placed on data quality as the accuracy of testing is heavily reliant on the input. Hence, this study intends to find whether there is a relationship between the perception of Malaysian Big Four external auditors and fraud detection in the audit testing phase. An online questionnaire based on a 5-point Likert scale was distributed and received responses from 108 external auditors where data was coded and input into the SPSS for further analysis. The results show that Malaysian Big Four external auditor’s perception of emerging technology affects the use for fraud detection in audit testing. As this study could not be generalized, further research should consider looking from the time constraints viewpoint or to study auditors from a similar firm for a greater understanding of their perception since firms have different degree of emerging technology adoption.

Accounting Students’ Motivation for Getting Professionally Qualified

To move Malaysia to a developing nation, 60,000 professionally qualified accountants are needed by 2030. However, as of April 2017, only 33,000 accountants have registered as members of the Malaysian Institute of Accountants (MIA). The purpose of this research is to analyse students’ behaviour on the motivational factors to obtain professional accounting qualifications. This study gathered the response of 187 students as samples from the only public university in Malaysia that offers ACCA professional accounting certificate. The results show that most students are motivated by intrinsic and extrinsic motivations, while there is no relationship between third parties’ influence and demographic factors with the decision to pursue a professional accounting qualification. Keywords: Professional qualified; intrinsic motivation; extrinsic motivation; accounting students eISSN: 2398-4287© 2020. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v5i15.2454.

Drivers Contributing to the Implementation of Generalized Audit Software (GAS) within Audit Firms in Malaysia

Many businesses are moving towards the usage of information technology to be in line with their daily operations. Traditional audit methods are no longer relevant these days. Generalized Audit Software (GAS) is a type of software that is suitable for auditors to perform audit tasks. GAS can assist auditors to improve the effectiveness and efficiency of audit. To date, the development of GAS in audit firms is still low, although many practitioners had argued that auditors can receive greater benefits by using GAS. This research is motivated by an interest in understanding drivers contributing to the implementation of GAS within audit firms located in the central region of Malaysia. Prior studies had placed more focus on internal auditors in large accounting firms, or auditors in other countries. However, there were not many researches being conducted on small and medium-sized audit firms in Malaysia. This study is therefore intended to fill in this gap. Data were collected using questionnaire survey on small and medium-sized audit firms registered with the Malaysian Institute of Accountants (MIA) in the central region of Malaysia. A total of 96 responses were analysed using multiple regression analysis. It was found that performance expectation, effort expectation and facilitating conditions had significantly influenced the implementation of GAS among small and medium-sized audit firms. However, social influence was found to have no significant relationship. The outcome of this study might help audit firms, software developers and academia to increase the usage of GAS to perform audit tasks. Future research should further explore on the influence of gender, age, voluntariness, experience, and other drivers contributing to the implementation of GAS within audit firms.

Characteristics of auditors’ non-audit services and accruals quality in Malaysia

PurposeThe purchase of non-audit services from incumbent auditors has generated considerable attention. This study aims to examine the relationship between characteristics of non-audit services, namely, the recurrence and types of services, and accruals quality in Malaysia.Design/methodology/approachThis study analyzed hand-collected audit and non-audit fees of 1,117 observations from Malaysian firms from 2009 to 2011. This study used descriptive analysis, univariate tests and multivariate regression to investigate the potential effect of non-audit services on accruals quality.FindingsNon-audit services are associated with lower accruals quality. Recurring and non-recurring non-audit service fees are detrimental to the quality of accruals, as are all types of recurring non-audit services. Only non-recurring audit-related services decrease accruals quality. The results demonstrate that provisions of non-audit services create economic bonding, and thus a threat to auditor independence. Results remain robust with the inclusion of corporate governance and institutional variables.Research limitations/implicationsThe sample period might represent a limitation as it only covers three years of data. This limitation is mainly because of the nature of data collection of the non-audit services fees.Practical implicationsThe findings could suggest a refinement on the Malaysian Institute of Accountants (MIA) by-laws focusing on auditor independence, and it could assist other regulative bodies such as the Securities Commission, the stock exchange (Bursa Malaysia) in ensuring better governance on the provision of non-audit services.Originality/valueThis study is the first that provides evidence on the relationship between non-audit services, types, and recurring and non-recurring non-audit services and accruals quality in Malaysia.

The Relationship Between Islamic Cultural Values and Corporate Social Accountability: Malaysian Muslim Accountants

This study investigates the relationship between Islamic cultural values and corporate social accountability among Muslim accountants in Malaysia. Two independent variables are proposed namely collectivism and power distance. Multivariate analysis was employed to examine the relationship between the variables in the framework and 124 respondents participated in this study. It is found that there is no relationship between collectivism and corporate social accountability. On the other hand, there is a significant positive relationship between power distance and corporate social accountability. In conclusion this study recommends that the understanding on zakat and equality should be given utmost priority in order to increase the level of social accountability among Muslim accountants in Malaysia. Such learning activities should be given continuous professional development (CPD) point by the Malaysian Institute of Accountants (MIA) as a motivation.

Perceptions of Corporate Executives in the Adoption and Implementation of Integrated Reporting : Evidence from Malaysia

Integrated reporting (IR) is steadily gaining momentum globally. Therefore, the aim of this paper was to examine the executives' perspectives on IR in the Malaysian context regarding their awareness, benefits, costs, training requirements apart from ascertaining how organizations are preparing themselves towards adoption and disclosure of the IR. Using a simple random sampling method, 150 companies listed on Bursa Malaysia agreed to participate in the survey, however, responses were received from 50 companies only. Derived from literature review, a questionnaire was used to collect the data during April-June 2017. Majority of the respondents were senior managers and managers from accounting and finance functions. The responses were measured on a Likert scale. The findings revealed that none of the surveyed companies had yet adopted IR as the new reporting tool, yet 56% of them were considering adopting IR due to potential derived benefits. In Malaysia, the level of knowledge about IR is still at a lower level due to users' general lack of familiarity with the IR model. Therefore, training will benefit the companies' executives to increase their awareness and knowledge of IR gradually. This gives us positive and integrated thinking towards IR in Malaysia. The Malaysian Institute of Accountants (MIA) emerged as the leading agency for enforcement of IR and is to be made a mandatory requirement for financial reporting in Malaysia. The study suggested that future studies may be targeted to the executives who have primary responsibility for preparing IR, in addition to focusing on determinants of IR adoption and implementations.

Distance Mentoring and Usage of Technology: What can be Learned from the Success Story?

Abstract Distance mentoring enabled the accounting graduates who participated in the Chartered Accountant's Relevant Experience (CARE) programme to appoint the mentors outside their workplaces. It solved the problem of getting mentors (the Chartered Accountants), particularly in the workplaces with insufficient Chartered Accountants. Participation in CARE was a compulsory practical experience requirement, enforced by the Malaysian Institute of Accountants (MIA) since year 2009. However, in year 2014, the Committee to Strengthen the Accountancy Profession in Malaysia (CSAP) argued on the ineffectiveness of distance mentoring. In Malaysia, little attention has been given on understanding on the effectiveness of distance mentoring in CARE. In the nurses’ mentoring programme, distance mentoring was effectively implemented. Particularly, it overcame the issue of insufficient mentors in the United States. Therefore, the objective of this paper was to identify the factors influencing the effective distance mentoring in the nursing mentoring programme. It explores how technology has supported connectivity in distance mentoring. In the theoretical perspective, this paper extended the concept of distance mentoring in the lens of mentoring theory. The insights from this paper would assist the accounting graduates, mentors and MIA to enhance the distance mentoring in CARE.

Job Selection Preferences of Accounting Students in Malaysian Private Universities

Abstract The purpose of this descriptive study is to investigate the factors affecting job selection preferences of accounting student in Malaysian private universities. The independent variables which were chosen are starting salary, gender, employer reputation and working environment. This research seeks to identify whether starting salary, gender, employer reputation and working environment are vital to accounting student in Malaysian private universities when choosing or selecting a job in future. In order to observe these factors, 200 students, specifically students who enrolled in accounting field from few of the private universities in Malaysia were surveyed. The data collection is tested using IBM SPSS Statistics software. The research findings showed that three factors, which are starting salary, employer reputation and working environment, have significant relationship with job selection preferences while gender variable are not significantly related to the dependent variable. The findings of this study has implication on the employers and educators by providing guidance to them of what a fresh graduate prefers when selecting job or career. Besides, the findings will assist universities to have better knowledge about career preferences to come out with curriculum for the accounting program which can boost accounting students to choose accountant as their profession. Not only that, professional bodies such as Malaysian Institute of Accountants (MIA) can identify factors that affect the decision of these accounting students in selecting their career so that they can formulate various strategies to accomplish a desired number of accountants by 2020.

Blended Learning Web Tool Usage among Accounting Students: A Malaysian Perspective

The technological advancement in the blended learning enables the accounting educators to combine the face-to-face learning with the online learning. This research argues that the usage of the blended learning web tools could address the concern of the Halatuju 2 on student-centered learning in the Malaysian Institute of Accountants (MIA) accredited universities. However, in Malaysia, little is known on how has blended learning web tool been used in the accounting courses. Therefore, this research presented a qualitative study on a blended learning web tool, known as Blendspace, utilised in the Public Sector Accounting course, offered at the MIA accredited university. The first objective of this research was to report how frequent the 124 accounting students used the Blendspace. Secondly, it explained the influencing factors of the Blendspace usage from the experience of five accounting students. Thirdly, it recommended how the usage of Blendspace can be improved. Data were collected through multiple data sources namely from the documents’ review, phone interviews and observation. The findings reported the usage frequency, factors of Blendspace usage (ease of use, usefulness and accounting students’ attitude). In the perspective of theoretical contribution, this research extends the concepts in the student involvement theory using the blended learning. For this case, since the Blendspace was utilised for the first time in the public sector accounting course, the findings from this research would enhance the usability of the Blendspace in the current and other accounting courses.

Phantasmagoric Accounting in Malaysia: A Case Study of ‘The Triumph of Hope over Experience’?

With the aim of detailing issues and problems that confronted accounting in Malaysia during the forty year period beginning from independence in 1957 and ending just before the onset of the Asian Financial Crisis 1997-98 and where the data came in the form of published and unpublished documents and interview findings, the study has found that there were confusion over the identity of the accounting bodies the Malaysian Institute of Accountants (MIA) and the Malaysian Association of Certified Public Accountants (MACPA), accountants shortage, the presence of bogus accountants, disciplinary quagmire and accounting standards confusion. To explain the goings-on, the view of accounting as a social practice imbedded in a socio-historical context is taken up. This leads to the conclusion that the elite group had played quite an important role in shaping accounting in Malaysia to be nothing more than the repeated case of ‘the triumph of hope over experience’. Their (mis)conduct is apparent in regard to the MIA being inactive for two decades, the brouhaha surrounding goodwill accounting standards and the formation of the Malaysian Accounting Standards Board (MASB).

Enhancing Soft Skills of Accounting Undergraduates through Industrial Training

Although Malaysian Institute of Accountants (MIA) requires a six months industrial training for accountancy degree programme offered in any university in Malaysia since 2005, to date there is no study on its contribution to the development of student's skills, in particular the soft skill. This study discusses the outcomes obtained from a survey of 137 accounting students at Universiti Kebangsaan Malaysia (UKM). Overall, this study shows that students develop various soft skills including time management, oral communication and working in group. Theoretically, this study contributes to the existing line of research in industrial training. In addition, finding from this study provides guidance to policy makers such as MIA and university's administrators to enhance future industrial training programme.

An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

Financial reporting quality has been under scrutiny especially after the collapse of major companies. The main objective of this study is to investigate the audit committee’s effectiveness on the financial reporting quality among the Malaysian GLCs following the transformation program. In particular, the study examined the impact of audit committee characteristics (independence, size, frequency of meeting and financial expertise) on earnings management in periods prior to and following the transformation program (2003-2009). As of 31 December 2010, there were 33 public-listed companies categorized as Government-Linked Companies (GLC Transformation Policy, 2010) and there were 20 firms that have complete data that resulted in the total number of firm-year observations to 120 for six years (years 2003-2009). Results show that the magnitude of earnings management as proxy of financial reporting quality is influenced by the audit committee independence. Agency theory was applied to explain audit committee, as a monitoring mechanism as well as reducing agency costs via gaining competitive advantage in knowledge, skills, and expertise towards financial reporting quality. The study is important as it provides additional knowledge about the impact of audit committees effectiveness on reducing the earnings management, and assist practitioners, policymakers and regulators such as Malaysian Institute of Accountants, Securities Commission and government to determine ways to enhance audit committees effectiveness and improve the financial reporting of GLCs, as well as improving the quality of the accounting profession.

Knowledge of ethics, perceived ethical problems and ethical judgments

PurposeThe paper aims to investigate: the influence of knowledge of ethics (KOE) on auditors' perceived ethical problems (PEB); the influence of PEB on ethical judgments (EJ); and the mediating impact of PEB that mediate the relationship between KOE and EJ.Design/methodology/approachA total of 940 questionnaires were distributed to auditors of audit firms in Malaysia and 250 auditors responded. However, only 224 questionnaires were usable. Data were analyzed using SPSS 16.0 and structural equation modeling (SEM) using AMOSS 16.0.FindingsThe results indicated that statistically significant relationships exist between KOE and PEB, PEB, and EJ. Additionally, PEB are found to mediate the relationship between KOE and EJ.Practical implicationsThis paper provides important implication for audit firms to enhance sufficient knowledge of Malaysian Institute of Accountants (MIA)'s code of ethical principles among their members. Another implication is for professional bodies to design a complete and effective code of ethics, disseminate free information to members through web site and e‐notification and conduct professional development programs with the latest development on a regular basis.Originality/valueThe number of studies on the impact of PEB as a mediator that mediates the relationship between KOE and EJ is scarce. Therefore, this paper aims to fill this gap. The findings provide insights that it is imperative to emphasize the importance of KOE and PEB in enhancing auditors' EJ.

Do Moral Philosophies Influence Auditor's Ethical Judgments?

The increasing number of financial scandals resulting from auditors’ unethical judgment has led to public distrust on the morality of auditors. Hence, the message is clear; to be relevant, auditors must be ethical in their behavior and judgments. As such, it is important to understand and investigate factors that influence auditors’ ethical judgments. This paper attempts to examine the influence of two moral philosophies namely deontology and teleology evaluations on auditors’ ethical judgments. A total of 940 questionnaires were sent to audit firms in Malaysia. About 250 auditors responded with 224 questionnaires were usable. By using Structural Equation Modeling of AMOS 16.0, the study found that there were significant relationships between these two philosophies namely deontology and teleology evaluations on auditors’ ethical judgments. Findings of this study will be useful for Malaysian Institute of Accountants (MIA), the government, audit firms and institutions of higher learning in their effort to improve auditors’ ethical judgments which can uphold the credibility and viability of the auditing profession. Keyword: deontology, teleology, auditor, ethical judgments