The effect of auditors’ psychological characteristics on cultural values and social health

Salehi, Mahdi; Aljhlini, Ahmed Kareem; Al-Maliki, Hind Shafeeq Nimr

doi:10.1108/mrr-06-2021-0483

Cited by 5 publications

(2 citation statements)

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“…Increasing a firm's intellectual capital or intangible assets leads to firm growth. However, it is also associated with an increased complexity of operational assessments, and thus an increase in the auditor's work pressure and higher risk (Salehi et al 2022c), leading to greater auditing task complexity and litigation risk (Visvanathan 2017;Salehi et al 2022b). Assessing intellectual capital requires more time and effort (Simunic 1980;Salehi and Zimon 2021).…”

Section: Introductionmentioning

confidence: 99%

The Relationship between Intellectual Capital and Audit Fees

Dashtbayaz

Mezher

Albadr

et al. 2023

JRFM

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The present study investigates whether intellectual capital (IC) is related to audit fees and financial statement restatements in companies listed on the Iraq Stock Exchange (ISE). The present study is a pioneer investigation of this topic in emerging markets. Using a sample of all listed companies on the ISE from 2014 to 2020, the research hypotheses are tested with multiple regression based on panel data and the fixed-effects model. The results demonstrate that intellectual capital is positively and significantly related to normal and abnormal audit fees. Moreover, findings indicate direct and significant relationships between intellectual capital components and normal and abnormal audit fees. This means investment in IC components is likely to determine the auditors’ evaluation of a given client’s riskiness. Thus, an efficient IC investment level might be considered a key factor that companies are expected to consider. The findings of this study provide valuable implications for users of financial statements, analysts, and policymakers with information regarding IC, risk determinants, and audit fees. Policymakers can improve market efficiency by implementing regulations that foster IC disclosure as a risk-determinant factor.

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Section: Introductionmentioning

confidence: 99%

The Relationship between Intellectual Capital and Audit Fees

Dashtbayaz

Mezher

Albadr

et al. 2023

JRFM

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“…Since audit performance is unobservable before or during the audit, various indicators have been introduced in research to show it; This study examines the factors associated with auditor performance; audit opinion shopping, audit expectation gap, audit report lag, and internal control weakness. Audit opinion and detecting and reporting material misstatements greatly depend on auditors' behaviour while performing their duties (Chan et al 2009;Salehi et al 2022aSalehi et al , 2022b. In societies with high social capital, honesty, obligations fulfilment, and mutual communication are among the social norms and values (Salehi et al 2022c(Salehi et al , 2022d.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Social Capital on Auditor’s Performance

Azghandi

Jabbari

Ranjbar

et al. 2023

JRFM

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This paper investigates the relationship between social capital and auditor’s performance in Iranian listed firms. The sample included 128 firms on the Tehran Stock Exchange from 2014 to 2020. The research method was descriptive-correlational, and the relationship between research variables was explained using regression models based on the panel data. The results illustrated that social capital positively correlates with auditor performance and Audit report quality. In other words, social capital decreases audit opinion shopping, audit expectation gap, internal control weakness, and audit report lag. Therefore, society’s influential assets, social capital, and audit report quality strongly influence the auditor’s performance. The auditor’s performance affects the probability of discovery and reporting material errors and misstatements. Therefore, recognizing influential factors on auditors’ performance can improve the quality of audit reports.

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The impact of partner perfectionism on audit quality: the mediating role of professional skepticism in the Egyptian context

Balboula,

Elfar

2023

JFRA

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Purpose This paper aims to investigate the relationship between audit partner perfectionism traits and audit quality in Egypt, emphasizing the mediating role of professional skepticism. Design/methodology/approach A mixed-methods approach was used, combining a questionnaire and scenario-based questions for audit partners with secondary data from audited financial statements. The relationships between study variables were tested using structural equation modeling. Findings Results denote a significant indirect effect between partner perfectionism traits and audit quality through their professional skepticism. Perfectionism has a significant positive impact on partner professional skepticism, and skepticism influences audit quality. Practical implications This study offers opportunities to enhance financial reporting quality, allowing investors to confidently allocate financial market resources. Audit firms can consider the personality traits of auditors in the selection process, team formation and designing training programs. Regulators can use these findings to consider the role of personality traits and attitudes in audit quality when developing regulations and quality assurance systems in Egypt. Originality/value To the best of the authors’ knowledge, no studies have examined the effect of partners’ perfectionism traits on professional skepticism and audit quality, especially in Egypt. By examining audit partners, who shape the tone at the top and are accountable for reputation, this study adds a novel dimension to understanding the impact of their qualities on audit outcomes. Moreover, combining survey and secondary data allows us to link these qualities with audit quality, objectively testing our hypotheses.

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The effect of auditors’ psychological characteristics on cultural values and social health

Cited by 5 publications

References 50 publications

The Relationship between Intellectual Capital and Audit Fees

The Relationship between Intellectual Capital and Audit Fees

The Effect of Social Capital on Auditor’s Performance

The impact of partner perfectionism on audit quality: the mediating role of professional skepticism in the Egyptian context

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