The Impact of Personal and Organizational Variables on the Predisposition of Independent Auditors toward Handling Self-made Errors

Document Type : Research Paper

Authors

1 Assistant Professor of Accounting, Jahrom University, Jahrom, Iran.

2 Assistant Professor of Accounting, University of Isfahan, Isfahan, Iran

Abstract

Errors occur at all levels of the audit team, and the management of these errors by the auditors who commit them plays an important role in improving the audit quality. The purpose of the present study is to investigate the effect of personal and organizational constructs on the predisposition of independent auditors toward handling self-made errors, considering the role of the moderating variable of their perception of audit firm’s organizational error management climate. The statistical population of this research includes auditors working in Audit Organization or audit firms that are members of the Iranian Association of Certified Public Accountants. The required data has been collected using a survey method and through a standard questionnaire from 178 auditors in 2023. In this research, structural equation modeling by partial least squares method has been used for data analysis. The results of the hypothesis test indicate that the constructs of resilience, self-efficacy, independence commitment and auditors’ perception of audit firm’s organizational error management climate have a positive and significant effect on the predisposition of independent auditors toward handling self-made errors. In addition to, the construct of auditors’ perception of audit firm’s error management climate moderates the effect of resilience and self-efficacy on predisposition of independent auditors toward handling self-made errors. The results of this research show that by increasing the resilience and self-efficacy of independent auditors and improving the organizational error management climate in audit firms, it is possible to provide the grounds for improving audit quality.

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References

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Journal of Accounting Advances
Volume 16, Issue 1
May 2024
Pages 1-28

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History

  • Receive Date: 10 June 2024
  • Revise Date: 30 October 2024
  • Accept Date: 02 November 2024

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