The Effects of Interaction among Audit Firms Ethical Culture, Audit Team Norms and Auditors Personality Type on Auditors' Intention to Report Detected Errors

Document Type : Research Paper

Authors

1 assisstant professor/ Islamic azad University, Najafabad Branch

2 lecturer/ Islamic azad University, Dolatabad Branch

Abstract

Lacking intention to report detected errors by independent auditors reduces the quality of their work and leads to audit firm failure. This study investigates the effects of interaction among auditors personality type, audit firm ethical culture and audit team norms on auditors’ intention to report detected errors. To investigate the interaction effects of the variables, the MODPROBE regression is used. The relation between variables and hypotheses is justified by Theory of Planned Behavior. The sample consists of audit firms, certified auditors in audit organization, and audit firms partners. Data are collected using questionnaire. The results indicate that the existing of audit firm ethical culture and audit team norms moderate the relation between auditors personality type and auditors’ intention to report errors. Thus, in audit firms with strong ethical culture and audit team norms, auditors with any personality type have more intention to report detected errors and misstatements.

Keywords

Main Subjects

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History

  • Receive Date: 21 September 2015
  • Revise Date: 22 December 2015
  • Accept Date: 09 January 2016

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