Influence of Religiosity on Ethical Decision-Making among Filipino Auditors in Public Practice

Abstract

Audit failures linked to corporate scandals in the Philippines and elsewhere have harmed the auditing profession's public reputation. This study looked at the impact of religion on ethical decision-making among Filipino auditors in public practice. Religious preoccupation, conviction, emotional involvement, and guidance were all measured using the Dimensions of Religiosity Scale. Two audit scenarios were used to evaluate the respondents' ethical decision-making across its various components: ethical sensitivity, ethical judgment, ethical intention, and ethical behavior. Data were gathered via an online survey and analyzed using Pearson r. Findings showed that auditors' ethical decision-making, primarily their ethical behavior, is significantly influenced by religiosity, the guidance it gives to their lives and their emotional involvement to these beliefs. Ethical decision-making was also found to be contingent upon the nature of the moral issue involved. The theorized interrelationship among the sequential components of Rest's (1986) ethical decision-making model was also confirmed. These findings can be used by auditing companies in considering one’s religiosity in recruitment and convert it into a company’s competitive advantage to help redeem the public confidence towards the profession. Other relevant constructs that can influence ethical decision-making, such as spirituality and moral intensity of issues, can be further studied from the lens of other ethical decision-making frameworks.