Journal of Business and Management Sciences
ISSN (Print): 2333-4495 ISSN (Online): 2333-4533 Website: Editor-in-chief: Heap-Yih Chong
Open Access
Journal Browser
Journal of Business and Management Sciences. 2017, 5(1), 18-26
DOI: 10.12691/jbms-5-1-3
Open AccessArticle

Effective Whistle-blowing Mechanism and Audit Committee in Nigerian Banking Sector

Fasua Henry Kehinde1, and Osifo Osagie U. I.1

1University of Benin, Benin City, Edo State, Nigeria

Pub. Date: April 11, 2017

Cite this paper:
Fasua Henry Kehinde and Osifo Osagie U. I.. Effective Whistle-blowing Mechanism and Audit Committee in Nigerian Banking Sector. Journal of Business and Management Sciences. 2017; 5(1):18-26. doi: 10.12691/jbms-5-1-3


A good done to others and clandestine acts revealed are investments that will surely ripen at the fullness of time. Whistle-blowing occupies vital role in combating fraud and corruption practices and other illegal activities in an entity. This study examines effective whistle-blowing mechanism and audit committee in Nigerian banking sector. The study employed a multi-variate regression technique as tool of analysis. A logistic regression analysis is used to estimate the relationships proposed in hypotheses. The study predicts that the Nigerian banking sector with more independent, meeting, expert, and diligent audit committees are likely to establish effective whistle blowing mechanism. The study finds a strong association between effective whistle blowing mechanism in Nigerian banking sector and audit committee independence, audit committee financial expertise, and audit committee meeting. The result of findings reveals that whistle blowing mechanism in Nigerian banking sector needs to be strengthened. Finally, the audit committee should be given the oversight duties in order to achieve desirable goals and objectives.

whistle-blowing internal audit audit committee codes of practice

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit


[1]  Baxter, P., & Cotter, J. (2009). Audit committee and earnings quality. Accounting and Finance, 49, 267-290.
[2]  Brabeck, M. (1984). Ethical characteristics of whistle-blowers, Journal of Research in Personality, 18: 41-53.
[3]  Brennan, N., & Kelly, J. (2007). A study of whistleblowing among trainee auditors. The British Accounting Review, 39(1), 61-87.
[4]  Brief, A. P., & Motowidlo, S. J. (1986). Prosocial organizational behaviors. The Academy of Management Review, 11(4), 710-725.
[5]  Brown, A, Mazurski, E., & Olsen, J. (2008). The incidence and significance of whistle blowing in A Brown (ED), whistle blowing in Australia Capital Territory, Australia, ANU Press.
[6]  Chartered Institute of Internal Auditors. (2014). Whistleblowing and corporate governance: The role of internal audit in whistleblowing.
[7]  Companies and Allied Matters Act. (2004). Lagos: Government Printers.
[8]  Council of Europe Civil Law Convention on Corruption. (1999). Article 9.
[9]  Deloitte (2013). Audit committee brief: cyber security and the audit committee.
[10]  De Maria, W. (2005). Whistleblower protection: Is Africa ready? Public Administration Development, 25(3): 217-226.
[11]  DeZoort, F. T., & Salterio, S. E. (2001). The Effects of corporate governance experience and financial reporting and audit knowledge on audit committee members judgments, Auditing: A Journal of Practice and Theory, 20(3): 31-47.
[12]  Dozier, J. B., & Miceli, M. P. (1985). Potential predictors of whistle-blowing: A prosocial behavior perspective. Academy of Management Review, 10(4), 823-836.
[13]  Emeh, Y., & Appah, E. (2013). Audit committee and timeliness of financial reports: Empirical evidence from Nigeria. Journal of Economic and Sustainable Development, 4(20), 14-25.
[14]  Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control, Journal of Law and Economics, 26, 2: 301-326.
[15]  Gilson, S.C. (1990). Bankruptcy, boards, banks, and block-holders: Evidence on changes in corporate ownership and control when firms default. Journal of Financial Economics, 27(2): 355-388.
[16]  ICAEW. (2004). Guidance to audit committees: whistle-blowing arrangements.
[17]  I C AN. (2014). Study text: Advanced audit and assurance. United Kingdom: Emile Woolf International Bracknell Ennterprise & Innovation Hub.
[18]  I C AN. (2014). Study text: Management, government and ethics. United Kingdom: Emile Woolf International Bracknell Ennterprise & Innovation Hub.
[19]  International Labour Organization Thesaurus. (2005).
[20]  Latane, B., & Darley, J. M. (1968). Group inhibition of bystander intervention in emergencies. Journal of Personality and Social Psychology, 10(3), 215-221.
[21]  Lee, S. H., & Oh, K. K. (2007). Corruption in Asia. Pervasiveness and arbitrariness Asia, Pacific Journal of Management, 24, 97-114.
[22]  Madawaki, A., & Amran N. A. (2013). Audit committees: How they affect financial reporting in Nigerian companies. Journal of Modern Accounting and Auditing, 9(8), 1070-1080.
[23]  Mell, P., Scarfone, K., & Romanosky, S. (2007). A complete guide to the common vulnerability scoring system.
[24]  Miceli, M. P., Near, J. P., & Dworkin, T. M. (2008). Whistle-blowing in organizations. New York: Routledge: Lawrence Erlbaum Associates.
[25]  Miceli, M. P., Near, J. P., & Dozier, J. B. (1991). Blowing the whistle on data fudging: A controlled field experiment. Journal of Applied Social Psychology, 21(4), 271-295.
[26]  Miceli, M. P., & Near, J. P. (1988). Individual and situational correlates of whistleblowing. Personnel Psychology, 41(2), 267-281.
[27]  Miceli, M. P., & Near, J. P. (1984). The relationship among beliefs, organizational position and whistle-blowing status: a discriminant analysis, Academy of Management Journal, 27: 687-705.
[28]  National Audit Office. (2014). Making a whistle-blowing policy work: the systems, structures and behaviours in place to enable effective whistle-blowing arrangements:
[29]  Near, J. P., & Miceli, M. P. (1995). Effective whistle-blowing. Academy of Management. The Academy of Management Review, 20(3), 679-708.
[30]  Near, J. P., & Miceli, M. P. (1988). The Internal Auditor's Ultimate Responsibility: The Reporting of Sensitive Issues, IIA, Altamonte Springs, FL.
[31]  Near, J. P., & Miceli, M. P. (1985). Organizational dissidence. The case of whistle-blowing, Journal of Business Ethics, 4: 1-16.
[32]  Ofo, N. (2010). An appraisal of Audit committee of public companies in Nigeria. Social science. Research Network.
[33]  OECD. (2011). Whistleblower protection frameworks, compendium of best practices and guiding principles for legislation; G20 Anti-corruption action plan: protection of whistleblowers.
[34]  OECD. (2009). Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, Recommendation for Further Combating Bribery of Foreign Public Officials in International Business.
[35]  Ponemon, L.A. (1994). Comments – whistle-blowing as an internal control mechanism: individual and organizational considerations, Auditing: A Journal of Practice and Theory, 118-30.
[36]  Read, W. J., & Rama, D. V. (2003). Whistle-blowing to internal auditors, Managerial Auditing Journal, 18(5): 354-362.
[37]  Sarbane-Oxley Act (2002). Public Law No. 107-204, Washington D.C.: GPO. Securities Commission.
[38]  UK PIDA. (1998). Part IV.A, Section 43B.
[39]  United Nations Convention Against Corruption. (2005). Article 33.
[40]  Vandekerchove, W. (2006). Whistle blowing and organization social responsibility (Ash gate, Alde shot / Burlington).
[41]  Nations Convention Against Corruption (Article 33), the Council of Europe.
[42] (2012). Journal of Marketing and Management, 6 (1), 41-61.