The Effect of External Efficacy on the Moral Courage and Self-Efficacy of Internal Auditors

Abstract

Purpose: This study investigates the effect of external efficacy (means efficacy and collective efficacy) on internal auditors' moral courage in the Tunisian context. This study also examines the effect of external efficacy on the self-efficacy of internal auditors. Theoretical framework: Previous auditing studies have revealed moral courage as the required tool for internal auditors to overcome their fears, break their silence about management fraud, and guide their ethical behaviors. Based on the social cognitive theory developed by Bandura and the model of the internal-external efficacy of Eden, this study tries to explain the association between means efficacy, collective efficacy, self-efficay, and internal auditors' moral courage Design/Methodology/Approach: 163 questionnaires were collected from internal auditors working in Tunisian companies and a partial least squares–-structural equation model was used to test the hypotheses. Findings: The results reveal a significant and positive effect of means and collective efficacies on internal auditors’ moral courage. Similarly, these variables have a significant and positive effect on the self-efficacy of internal auditors. Research, Practical & Social implications: This study permits to offer practical solutions to professional institutions and organizations (e.g., the Institute of Internal Auditing) that aim to determine what might encourage internal auditors to tell the truth about management fraud and report corruption. Originality/Value: This research fills one of the major research gaps in accounting studies by revealing that the self-efficacy and courageous behavior of internal auditors can be fostered by furnishing the necessary tools and working with an efficacious team.

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