Hasnah Haron
Graduate School of Business
Universiti Sains Malaysia, Malaysia

Ishak Ismail
School of Management
Universiti Sains Malaysia, Malaysia

Daing Nasir Ibrahim
Universiti Malaysia Pahang, Malaysia

Aw Lo Na
Universiti Sains Malaysia, Malaysia

Ethical issues involving Enron, Worldcom and Global Crossing have causedpublic confi dence on the auditing profession to decline. This study examinesfactors that infl uence the ethical judgement of auditors in Malaysia. Thesefactors include gender, fi rm size, position level, perceived ethical climateof the fi rm and exposure to ethics. A total of 76 auditors responded to thequestionnaires. Perceived ethical climate has a positive relationship withethical judgement, whereas exposure to ethics has a negative relationshipwith ethical judgement. The Malaysian Institute of Accountants, thegovernment and audit fi rms should consider introducing and maintaininga supportive ethical climate in audit fi rms and a clear policy on acceptableand unacceptable behaviours to improve the ethicality of auditors.

Keywords: Ethical Judgement, Auditors, Exposure to Ethics, Perceived Ethical Climate, Gender, Firm Size, Position Level