Whistleblowing And External Auditors

Abstract

New federal legislation now makes it mandatory for auditors to disclose observed mis-conduct to outside agencies. This article examines this legislation and presents data from a national sample of 353 auditors to explore the level of support for these new regulations. The vast majority of auditors are found to oppose the legislation, but there are also major differences in opinion for different groups of auditors. The implications of these survey results are then discussed.