Investigating the Relationship between the Dimensions of Organizational Culture and the Size of Audit Firms with Auditors’ Judgment and Decision Making

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran

2 Ph.D. Student, Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran

3 Assistant Professor, Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran.

Abstract

Professional judgment and decision-making are a vital part of all audit processes and the cornerstone of the audit profession; Therefore, it is essential to identify the factors affecting auditors’ judgment and learn new skills to improve the level of professional judgment and decision-making. Previous researches at the level of culture in societies show that the development and evolution of accounting in each society depends on the environmental, cultural, and social factors of that society. Therefore, the purpose of this research is to investigate the relationship between cultural dimensions from the aspects of masculinity, collectivism, uncertainty avoidance, and the power distance and the size of audit firms with auditors' judgment and decision-making. This research is applied research in terms of purpose and descriptive-analytical in terms of nature. The data collection tool is a questionnaire and the statistical population of the research is the members of the Iranian Association of Certified Public Accountants in 1400 and 1401. Research samples were chosen by random sampling method of 132 questionnaires. Confirmation of relationships between variables and factors has been done through confirmatory factor analysis and path analysis. Smart PLS statistical software was used to test the hypotheses. The results show that power distance and masculinity have a negative relationship, collectivism has a positive relationship with auditors' judgment and decision-making, and the uncertainty avoidance aspect has no significant relationship with auditors' judgment and decision-making. Also, the moderating role of the audit firm's size in the investigated relationships was not confirmed

Keywords

Main Subjects

References

منابع
انصاری، عبدالمهدی و کرمانی کمالی، نرجس.  (1391). بررسی عوامل موثر بر تصمیم حسابرسان جهت استفاده از ابزار کمکی تصمیم گیری در ارزیابی ریسک تقلب مدیریت. تحقیقات حسابداری و حسابرسی، 16(4): 62-79.
حساس یگانه، یحیی و عموزاد مهدیرجی، شهرام. (1399). عوامل موثر بر قضاوت حرفه ای (اخلاقی) حسابرسان و فشارهای وارده بر آنها. مطالعات تجربی حسابداری مالی، 17(67): 1-26.
خواجوی، شکراله و نوشادی، میثم. (1388). تجربه و نقش آن در قضاوت موضوعات ساختارنیافته حسابرسی. تحقیقات حسابرسی، 3: 108-121.
رحمانی، علی و حیرانی، افسانه. (1398). حسابرسی فرهنگ سازمانی در ایران. پژوهش های تجربی حسایداری، 8(31): 181-204.
رجب دری، حسین؛ وکیلی فرد، حمیدرضا؛ سالاری، حجت الله؛ امیری، علی. (1401). رابطه نظریه های اخلاقی و رفتار اخلاقی در قضاوت حسابرسان. قضاوت و تصمیم گیری در حسابداری و حسابرسی، 1(1): 113-141.
سیاهکل رودی، مژگان؛ فیضی، طاهره؛ رسولی، رضا؛ حضوری، جواد. (1394). شناسایی عوامل تاثیرگذار بر تصمیم گیری اخلاقی مدیران دانشگاه پیام نور. مدیریت دولتی، 7(3): 525-546.
شهبازی، مجید و مهرانی، کاوه. (1399).  تدوین مدل قضاوت حرفه ای حسابرسان مستقل، بررسی های حسابداری و حسابرسی، 27(1): 60-86.
صفرزاده بندری، محمدحسین؛ عرب مازار یزدی، محمد؛ هوشمند کاشانی، عباس. (1399). تاثیر اندازه موسسه حسابرسی و رده سازمانی حسابرسان بر استدلال های اخلاقی حسابرسان مستقل در مراحل مختلف نظریه رشد اخلاقی کالبرگ. بررسی های حسابداری و حسابرسی، 27(4): 624-648.
عبدی گلزار، بهمن و علیزاده بی پناه، مسعود. (1401). تاثیر آلودگی زیست محیطی بر کیفیت حسابرسی. حسابداری و منافع اجتماعی، 12(3): 200-183.  
عبدی گلزار، بهمن و بهاروند، داریوش. (1397). بررسی تاثیر فرهنگ سازمانی بر قضاوت های اخلاقی حسابرسان. چهارمین کنفرانس ملی پژوهش های کاربردی در علوم مدیریت، اقتصاد و حسابداری ایران. تهران.
علوی، حمیدرضا و یداللهی، حسین. (1382). بررسی فرهنگ و روش اداره تعارضهای درون پرسنلی بر طبق الگوی هافستد و توماس. علوم اجتماعی و انسانی دانشگاه شیراز، 20(1): 41-60.
گرندل، زهرا و آزادی، کیهان. (1400). بررسی اثر تعدیلی جنسیت حسابرس بر رابطه بین کیفیت حسابرسی و حق الزحمه حسابرسی. حسابداری و منافع اجتماعی، 11(3): 107-124.
گلشائیان، سیدمحمد؛ سادات غفاری، منصوره؛ سیدی، سید محدثه. (1399). بررسی تاثیر فشارهای اجتماعی، تعهد و ویژگی های شخصیتی بر قضاوت حسابرسان. چشم انداز حسابداری و مدیریت، 3(23): 99-117.
ملانظری، مهناز و اسماعیلی کیا. (1393). شناسایی ویژگیهای روان شناختی اثرگذار بر مهارت حسابرسان در انجام قضاوت های حسابرسی. بررسی های حسابداری و حسابرسی، 21(4): 505-526.
ملکیان، اسفندیار؛ کامیابی، یحیی؛ ابراهیمی مجد، هادی. (1401). ارائه مدلی برای ارتقا کیفیت و مهارت حسابرس از دیدگاه حرفه و کارفرما. پژوهش های تجربی حسابداری، 12(45): 384-361. 
نظری، علی اشرف و باقری، صمد. (1391). هویت فرهنگی ایران در فرایند جهانی شدن:  ظرفیتها و چشم اندازها. مهندسی فرهنگی، 6(65-66): 83-86.
نیکبخت، محمدرضا؛ سلیمانی امیری، غلامرضا؛ مومنی، منصور؛ حسین پور، امیرحسین. (1400). تاثیر اغواگری مدیریت و انگیزه های مدیریت نسبت به مدیریت سود و ارتباط کمیته حسابرسی با حسابرسان مستقل بر کیفیت قضاوت حسابرس. پژوهش های تجربی حسابداری، 11(1): 75-104.
وهابزاده گردرودباری، میلاد و بنی مهد، بهمن. (1395). اثر رابطه مداری بر قضاوتهای اخلاقی حسابرسان. دانش حسابداری و حسابرسی مدیریت، 5(20): 12-1.
References
Abdul Halim, H; Hartini, J; & E.J. Sharul. (2018). Factors Influencing Professional Judgement of Auditors in Malaysia. International Business Research, 11(11): 119-127.
Abdi Golzar, B; & Alizadeh Bipanah, M. (2022). The impact of environmental pollution on audit quality. Accounting and Social Interests, 12(3): 183-200. (In Persian).
Abdi Golzar, B; & Baharond, D. (2017). Investigating the impact of organizational culture on ethical judgments of auditors. The fourth national conference of applied research in management, economics and accounting sciences of Iran. Tehran. (In Persian).
Alavi, H; & Yadolahi, H. (2012). Investigating the culture and method of managing intra-personnel conflicts according to the model of Hofstede and Thomas. Social and Human Sciences of Shiraz University, 20(1): 41-60. (In Persian).
Ansari, A. M. & Kermani Kamali, N. (2011). Investigating factors affecting auditors' decision to use "decision making tool" in management fraud risk assessment. Accounting and auditing research, 16(4): 62-79. (In Persian).
Bonner, S. E. (1999). Judgment and decision-making research in accounting. Accounting Horizons, 13(4): 350-385.
Davenport, L; & S. Dellaportas. (2009). interpreting the public interest: A survey of professional accountants. Australian Accounting Review, 19(1): 11–23.
DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of accounting and economics, 3(3): 183-199.
Douglas, P; Davison, R; & B. Schwartz. (2001). The Effect of Organizational Culture and Ethical Orientation on Accountants’ Ethical Judgments.  Journal of Business Ethics, 34 (2): 101-121.
Fagbemi, T. O. (2020). Impact of environmental, demographical and personal factors on auditors’ ethical decision making in Nigeria. Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 30(3): 35-58.
Jayanti, D; & Aris, M. A. (2017). Pengaruh Independensi, Pengalaman, Kompleksitas Tugas, Tekanan Ketaatan Dan Etika Auditor Terhadap Audit Judgement (Studi Empiris Pada Kantor Inspektorat Se-Eks Karesidenan Surakarta) (Doctoral dissertation, Universitas Muhammadiyah Surakarta).
Grandel, Z; & Azadi, K. (2021). Analyzing the moderating effect of the auditor’s gender on the relationship between audit quality and audit fees. Accounting and Social Interests, 11(3): 107-124. (In Persian).
Golshaian, S. M; Sadat Ghaffari, M; Sidi, S. M. (2019). Investigating the impact of social pressures, commitment and personality traits on the judgment of auditors. Accounting and Management Perspectives, 3(23): 99-117. (In Persian).
Haron, H; Ibrahim, D. N; & Ismail, I. (2014). Factors influencing ethical judgement of auditors in Malaysia. Management & Accounting Review (MAR), 13(2): 47-86.
Hassas Yeganeh, Y. & Amouzad Mehdirji, Sh. (2019). Factors affecting the professional (ethical) judgment of auditors and the pressures on them. Empirical Studies in Financial Accounting, 17(67): 1-26. (In Persian).
Hofstede, G. (1997). Cultures consequences: international differences in Work-Related values. Beverly Hills: Sage publications.
Hofstede, G; & M. Minkove. (2010). Cultures and Organizations: software of the mind. New York: McGraw Hill.
Ishaque, M. (2021). Managing conflict of interests in professional accounting firms: a research synthesis. Journal of Business Ethics, 169(3): 537-555.
Ishaque, M. (2020). Cognitive approach to understand the impact of conflict of interests on accounting professionals’ decision-making behaviour. Accounting Forum, 44(1): 64-98.
Khajovi, Sh. & Noshadi, M. (2008). Experience and its role in judging unstructured audit issues. Auditing Research, 3: 108-121. (In Persian).
Malekian, E; Kamyabi, Y. & Ebrahimi Majd, H. (2022). Presenting the model to improvement the skill and quality of work from the profession and employer’s point of view. Empirical Research in Accounting, 12(45): 361-384. (In Persian).
Merdekawati, E. (2022). The Effect of Audit Experience and Audit Risk on Audit Judgment with Auditor’s Perceptions of the Code of Ethics of Public Accountants as Moderating Variables. In E3S Web of Conferences (348(. EDP Sciences.
Mullanazari, M. & Ismaili, K. (2013). Identification of psychological characteristics affecting auditors' skills in making audit judgments. Accounting and auditing reviews, 21(4): 505-526. (In Persian).
Nazari, A. A. & Bagheri, S. (1391). Iran's cultural identity in the process of globalization: capacities and prospects. Cultural Engineering, 6(65-66): 83-86. (In Persian).
Nikbakht, M; Soleimani, A. Gh; Momeni, M; Hosseinpour, A. H. (1400). The influence of management's seduction and management's motivations towards profit management and the communication of the audit committee with independent auditors on the quality of the auditor's judgment. Accounting Empirical Researches, 11(1): 75-104. (In Persian).
Patel, C; Harrison, G. L; & McKinnon, J. L. (2002). Cultural influences on judgments of professional accountants in auditor–client conflict resolution. Journal of International Financial Management & Accounting, 13(1): 1-31.
Praditaningrum, A. S; & Januarti, I. (2011). Analisis Faktor-Faktor yang Berpengaruh terhadap Audit Judgment. Universitas Diponegoro: Semarang.
Rahmawati, J. D. W. (2013). Pengaruh Kompetensi dan Independensi Terhadap Kualitas Audit. Jurnal akuntansi.
Rahmani, A. & Hirani, A. (2018). Organizational culture audit in Iran. Accounting Experimental Researches, 8(31): 181-204. (In Persian).
Rajab Dari, H; Vakili Fard, H; Salari, H; Amiri, A. (1401). The relationship between ethical theories and ethical behavior in the judgment of auditors. Judgment and Decision Making in Accounting and Auditing, 1(1): 113-141. (In Persian).
Safarzadeh Bandari, M. H.; Arab Mazar Yazdi, M; Houshman Kashani, A. (2019). The effect of the size of the audit firm and the organizational rank of auditors on the ethical arguments of independent auditors in different stages of the moral development theory of Kalberg. Accounting and Auditing Reviews, 27(4): 624-648. (In Persian).
Siahkol Rudi, M; Faizi, T; Rasouli, R; Hozouri, J. (2014). Identifying the influencing factors on the ethical decision-making of Payame Noor University administrators. Public Administration, 7(3): 525-546. (In Persian).
Shahbazi, M. & Mehrani, K. (2019). Development of independent auditors' professional judgment model. Accounting and Auditing Reviews, 27(1): 60-86.(In Persian).
Sweeney, B; Arnold, D; & Pierce, B. (2010). The impact of perceived ethical culture of the firm and demographic variables on auditors’ ethical evaluation and intention to act decisions. Journal of Business Ethics, 93(4): 531–551.
Vahabzade Gerrodbari, M. & Bani Mahd, B. (2015). The effect of orientation relationship on ethical judgments of auditors. Management accounting and auditing knowledge, 5(20): 1-12. (In Persian).
Wyatt, A. R. (2004). Accounting professionalism-They just don't get it!. Accounting horizons, 18(1): 45-54.
Wedemeyer, P.D. (2010). A discussion of Auditor Judgment as the Critical Component in Audit Quality-A Practitioners Perspective. International Journal of Disclosure and Governance, 7(2): 320-333.
Empirical Research in Accounting
Volume 13, Issue 4 - Serial Number 50
January 2023
Pages 195-220

Files

History

  • Receive Date: 14 October 2022
  • Revise Date: 24 June 2023
  • Accept Date: 20 February 2023

Share

How to cite

Statistics