The effect of job complexity, auditor's job rating and acceptance of inefficient behavior on audit judgment: the moderating role of independence

Subject Areas : Financial and Behavioral Researches in Accounting

shahrzad  aghamohamadi ¹ (department of accounting, najafabad branch, islamic azad university, najafabad, iran)
arezoo  aghaei chadegani ² (accounting department, najafabad branch, islamic azad university, najafabad, iran)

Received: 2023-03-12 Accepted : 2023-06-01 Published : 2023-06-22

Keywords: work complexity, auditor seniority, acceptance of inefficient behavior, audit judgment, Independence,

Abstract :

The main purpose of the current research is the impact of work complexity, auditor's job rating and acceptance of inefficient behavior on audit judgment: the moderating role of independence. The statistical population of this research includes all auditors working in audit institutions and audit organizations in Iran. Using Cochran's formula, a sample size of 192 people was considered. The data needed to examine and analyze the research hypotheses were collected through a standard questionnaire, and path analysis regression with SmartPLS software was used to examine the relationships between variables.The results of the research showed that the interactive variable of independence* work complexity which has a significance level of 0.036 and less than 0.05, it can be concluded that the independence variable can moderate the relationship between work complexity and audit judgment and work complexity It has a positive and significant effect on audit judgment. Therefore, hypothesis H1 is accepted in this study. The interactive variable of independence* the auditor's job rating, which has a significance level of 0.042 and less than 0.05, it can be concluded that the independence variable can adjust the auditor's job rating with audit judgment, therefore, hypothesis H2 in this research accepted. The interactive variable of independence* acceptance of inefficient behavior which has a significance level of 0.020 and less than 0.05, so it can be concluded that independence can moderate the relationship between acceptance of inefficient behavior and audit judgment, therefore, hypothesis H3 in this The research has been accepted.

References:

Ahmadi, ., Rostami, A., & Heydarzadeh, S. (2022). The Effect of Moral Reasoning, Exposure to Ethics and Perceived Ethical Climate on Auditors' Ethical Judgment. Financial and Behavioral Researches in Accounting, 2(3), 20-37.  (In persian)

Astuti, C. D., Sihotang, E. P., Wahyuni, L., & Dizar, S. (2022).The Effect Determinant Factors of Audit Judgment in the Government Sector, In 3rd Borobudur International Symposium on Humanities and Social Science 2021. 778-782. Atlantis Press.

Boyd, Colin. (2004). The structural origins of conflicts of interest in the accounting profession. Business Ethics Quarterly 14(3): 377-398.

Danielle R. Lombardi; Janice C. Sipior; Steven Dann miller. (2022). Auditor Judgment Bias Research: A 50-Year Trend Analysis and Emerging Technology Use. American Accounting Association Journal of Information Systems, 37(1), 109–141.

Ehsan Kazem Pour, Yahya Hassas Yeghaneh, (2014). Relation between auditors expertise and ethical sensitivity and moral judgment, Journal of Empirical Research in Accounting, 3(2), 53-70. (In persian)

Fietoria, & Manalu, E. S. (2023). The Influence of Professionalism, Independence, Competence and Work Experience on Audit Quality at the Bandung Public Accounting Firm. Journal of Accounting and Business Studies, 6(4), 1588–1595.

Gunawan, I., & Indarto, S. (2022). Independence as Moderating Factors Influencing Audit Judgment. Asian Journal Of Law And Governance, 4(1), 1-10.

Hamdam, Adli; Jusoh, Ruzita; Yahya, Yazkhiruni; Abdul Jalil, Azlina; Zainal Abidin, Nor Hafizah LessAccounting research journal, 35(1), 55 - 70.

Harahap, A. R. M. (2019). Effect of Audit Expertise, Task Complexity and External Locus of    Control on Audit Judgment. Researchgate .8(2):100.

Imani, K., & Fakhari, H. (2022). Measuring Audit Task Complexity Using Structural Equation Modeling. Empirical Studies in Financial Accounting, 19(75), 125-164. (In persian)

Ismail, F. (2015). The Influence of Personality Type, Experience and Acceptance of Dysfunctional Behavior on Audit Judgment. Journal of Business and Management, 5(2), 263–278.

Jati, I. K., & Suprasto, H. B. (2018). Moderation the Audit Experience and Professional Skeptism for the Effect of Time Budget Pressure and Audit Complexity on Audit Judgment. Research Journal of Finance and Accounting, 9, 2222-1697.

Khoshtinat, M., & Bostanian, J. (2007). Professional Judgment in Auditing. Empirical Studies in Financial Accounting, 5(18), 25-57. (In persian)

Komang Adi Kurniawan Saputra, Putu Gede Wisnu Permana Kawisana. (2021). Analysis of the Influence of Power, Auditor Experience and Task Complexity on Audit Judgment. Pal Arch’s Journal of Archaeology of Egypt / Egyptology, 18(4), 6370-6379.

Miri, Akbar, & Banimahd, Bahman. (2022). Effect of mindfulness on the ethical orientation of auditors working in the auditing profession. Journal of Accounting and Auditing Resrarches (Accounting Resrarche), 13(52), 97-108.  (In persian)

Modirkia, P., Faghani Makrani, K., & Fazeli, N. (2022). Meta-Analysis of the Effect of Independence of the Internal Audit Unit on Internal Audit Performance. Accounting and Auditing Research, 14(55), 21-38. (In persian)

Namazi, Mohammad and Hossein Rajabadri, (2019), Theories and Applications of Professional Accounting Ethics, Tehran: Tehran University Press. (In persian)

Putri, A. U. (2018). The Effect of Obedience Pressure, Task Complexity, and Auditor Experience on Auditor Judgment (Case Study at a Public Accounting Firm in Palembang City). Scientific Journal of Global Economics, 9(2), 95–102.

Ratnaningsih, R., and Linda Diana, A. (2020), The Effect of Accountant Professional Ethic’s Education and Religiosity on Student’s Perception of Accountant’s Ethical Behavior (Study on Indonesia College of Economics Bachelor of Accounting Students), Advances in Economics, Business and Management Research, 127, PP. 1-4.

Rajabdorri, H., Vakiliifard, H., Salari, H., & Amiri, A. (2021). The pattern of the relationship between ethical philosophies and information technology with the ethical behavior of auditors: Actors Network Theory (ANT) approach. Innovation management and operational strategies, 2(3), 216-228.  (In persian)

Rajab Dari, Hossein, Vakilifard, Hamidreza, Salari, Hojat Elah, and Amiri, Ali. Identifying and Examining the Importance of Ethical Theories in Auditing from the Perspective of Experts and Practitioners. Ethics in Science and Technology 2020; 15 (2) :37-44. (In persian)

Rajab Dari, Hossein, Vakilifard, Hamidreza, Salari, Hojatullah, & Amiri, Ali. (2022). Judgment and Decision Making in Accounting and Auditing, 1(1), 113-142. (In persian)

Saidi Garaghani, Muslim, & Naseri, Ahmed. (2016). Individual differences and auditor's professional judgment. Financial accounting and auditing research, 9(36), 111-130. (In persian)

Tanoto, R., & Suputra, I. D. G. (2017). Effect of Obedience Pressure, Task Complexity and Auditor Seniority on Audit Judgment. E-Journal of Accounting, 21(1), 57–85.