The causes and consequences of ego depletion in the quality of auditors' judgment and decision making
Subject Areas : AccountingZahra Nazifi 1 , Alireza Mehrazeen 2 * , abolghasem massihabadi 3 , Ahmad Zendedel 4
1 - Department of Accounting, Ne.C., Islamic Azad University, Neyshabur, Iran.
2 - Department of Accounting, Ne.C., Islamic Azad University, Neyshabur, Iran.
3 - Department of Accounting, Ne.C., Islamic Azad University, Neyshabur, Iran.
4 - Department of Accounting, Ne.C., Islamic Azad University, Neyshabur, Iran.
Keywords: Auditor, Depletion of Ego, Experiment and Scenario, Quality of Judgment and Decision Making,
Abstract :
Purpose: Studying ego depletion in the auditing domain is essential, as this phenomenon can lead to critical consequences in financial statement audits. Understanding whether, and under what conditions, contextual and ecological characteristics may mitigate or intensify the consequences of ego depletion is equally important. Accordingly, this study investigates the role of ego depletion in auditors’ judgment and decision-making quality by conducting experiments and designing realistic professional scenarios to examine the causes and consequences of ego depletion in auditing.
Research Methodology: This research is experimental in terms of data collection and is positioned within behavioral and psychological accounting research. Data were collected from practicing auditors in audit firms during 2022 and analyzed using SPSS software. Ego depletion was measured through laboratory experiments, designed audit scenarios, and the Stroop test, while a researcher-developed questionnaire was employed to assess auditors’ judgment quality.
Findings: The results reveal that audit tasks induce ego depletion among auditors, while audit experience moderates the ego depletion resulting from task performance. Moreover, the findings indicate that ego depletion leads to differences in the quality of ethical judgment and decision-making among auditors.
Originality / Value: The scientific contribution of this study lies in employing the Stroop test and utilizing psychological assessment tools in auditing research; hence, this work is categorized as interdisciplinary, integrating behavioral science into the field of audit quality evaluation.
Akbari Naft Chali, E., Pourheidari, O., & Khodamipour, A. (2019). The effect of experience on auditors' involuntary behaviors. Financial Accounting and Auditing Research, 11(41), 197-228. [In Persian]
Bakhshian, A., Heyrani, F., & Taftiyan, A. (2024). Assessing the credibility of auditors using artificial neural network. Advances in Finance and Investment, 5(1), 1-28. [In Persian]
Baumeister, R. F. (2018). Self-Regulation and Self-Control. Routledge.
Bazerman, M. H., Morgan, K. P., & Loewenstein, G. F. (1997). The impossibility of auditor independence. Sloan management review, 38, 89-94.
Bennett, G. B., & Hatfield, R. C. (2013). The effect of the social mismatch between staff auditors and client management on the collection of audit evidence. The Accounting Review, 88(1), 31-50.
Beres, D. (1956). Ego deviation and the concept of schizophrenia. The psychoanalytic study of the child, 11(1), 164-235.
Bhaskar, L. S., Majors, T. M., & Vitalis, A. (2016). Are'Good'Auditors Impacted More by Depletion? Threats to Valued Auditor Attributes. Threats to Valued Auditor Attributes.
Carter, E. C., Kofler, L. M., Forster, D. E., & McCullough, M. E. (2015). A series of meta-analytic tests of the depletion effect: Self-control does not seem to rely on a limited resource. Journal of Experimental Psychology: General, 144(4).
Chi, M. T. H., Glaser, R., & Rees, E. (1982). Expertise in problem solving. Advances in the psychology of human intelligence, 1, 7-76.
Church, B. K., & Shefchik, L. B. (2012). PCAOB inspections and large accounting firms. Accounting Horizons, 26(1), 43-63.
Danessa, F., & Yusrianti, H. (2023). The effect of goal orientation and ego depletion on audit judgment with task complexity as moderating variable. (Undergraduate thesis, Sriwijaya University).
Daryaei, A., & Kholousi Moshfegh, L. (2020). Impact of Self-Control Ego Depletion on Quality of Judgment and Decision-Making of Auditors (Test of Self-Control Ego Depletion Theory). Journal of Health Accounting, 8(2), 20-38. [In Persian]
DeLisi, M. (2014). Low self-control is a brain-based disorder. Sage.
Donnelly, A. M., Kaplan, S. E., & Vinson, J. M. (2021). The impact of trait skepticism and ego depletion on auditor judgment. Behavioral Research in Accounting, 33(1), 107-122.
Fakhari, H., & Fazlollahpour Nagharchi, M. (2022). The Effect of Psychological Capital on the progress Motivation, Auditor Judgment, and Performance of Audit firms. AAPC, 7(13), 154-199. [In Persian]
Ghadimi, F., Aliahmadi, S., Alimoradi, M., & Shamshiri, M. R. (2024). Investigating the impact of financial fallacies on the judgment of financial analysts. Advances in Finance and Investment, 5(3), 93-114. [In Persian]
Golshaeian, S., Sadat, M., & Seyyedi, M. (2020). Investigating the effect of social pressures, commitment and personality traits on the judgment of auditors. Journal of Accounting and Management Vision, 3(23), 99-117. [In Persian]
Hagger, M. S., Wood, C., Stiff, C., & Chatzisarantis, N. L. (2010). Ego depletion and the strength model of self-control: a meta-analysis. Psychological bulletin, 136(4).
Hajiha, Z., & Ebrahimi, M. R. (2016). Improvement in auditor's opinion and its effects on changes in stock price and trading volume. Financial Accounting and Auditing Research, 8(30), 61-82. [In Persian]
Hosseinpoor, S., Kheradyar, S., Khozain, A., & Mohamadi Nodeh, F. (2021). The Effect of Mental Health and Perfectionism on Ethical Accounting Decision Making with the Mediating Role of Procrastination. AAPC, 6(11), 93-121. [In Persian]
Hurley, P. J. (2015). Ego depletion: Applications and implications for auditing research. Journal of Accounting Literature, 35(1), 47-76.
Hurley, P. J. (2017). Ego depletion and auditors' busy season. Behavioral Research in Accounting, 29(2), 25-35.
Hurley, P. J. (2019). Ego depletion and auditors’ JDM quality. Accounting, Organizations and Society, 77, 101048.
Karami, G., Dolatzarei, E., & Faraji, O. (2022). Twenty-One Years of the Behavioral Accounting Research: A Bibliometric Analysis. Empirical Studies in Financial Accounting, 19(75), 165-201. [In Persian]
Karimi, Z., Yaqoobnejad, A., Samadi Larghani, M., & Pourali Lakelayeh, M. (2021). Evaluating the Effect of Auditors' Individual Psychological Bias and Personality Dimensions on Audit Quality. Financial Accounting and Auditing Research, 13(52), 23-52. [In Persian]
Khajavi, S., & Salahi, T. (2020). Impact of job depletion on performance in performing audit complex tasks. AAPC, 4(8), 243-279. [In Persian]
Knechel, W. R., Krishnan, G. V., Pevzner, M., Shefchik, L. B., & Velury, U. K. (2013). Audit quality: Insights from the academic literature. Auditing: A journal of practice & theory, 32(1), 385-421.
Kremin, J. (2014). Control yourself! The impact of self-control on auditors' ability to practice professional skepticism. The Impact of Self-Control on Auditors' Ability to Practice Professional Skepticism.
Lavertue, N. E., Kumar, V. K., & Pekala, R. J. (2002). The effectiveness of a hypnotic ego-strengthening procedure for improving self-esteem and depression. Australian journal of clinical and experimental hypnosis, 30(1), 1-23.
Mahdavi, G., & Sarvestani, A. (2018). The Role of Accounting Standards Setting Approaches on the Psychological Characteristics of Auditors. Journal of Accounting Knowledge, 8(4), 65-92. [In Persian]
Mullis, C. E., & Hatfield, R. C. (2018). The effects of multitasking on auditors’ judgment quality. Contemporary Accounting Research, 35(1), 314-333.
Muraven, M., Shmueli, D., & Burkley, E. (2006). Conserving self-control strength. Journal of personality and social psychology, 91(3).
Mursita, L. Y., Mustafida, N., & Rachmadia, R. (2019). Ego depletion and its effect on auditors’judgment and decision-making quality. Jurnal Akuntansi Dan Keuangan Indonesia, 16(2).
Neal, D. T., Wood, W., & Drolet, A. (2013). How do people adhere to goals when willpower is low? The profits (and pitfalls) of strong habits. Journal of Personality and Social Psychology, 104(6).
Parviz, K., Aghamouhamadian Sharbaf, H., Ghanbarihashemabadi, B., & Dehghani, M. (2016). The relationship between ego strength and metacognition among male and female students. Education Strategies in Medical Sciences, 9(2), 118-126. [In Persian]
Rajabalizadeh, J. (2005). The impact of auditors' emotions and mental states on professional audit judgment: A review of studies and a summary of proposed concepts and approaches. The 24th Earth Sciences Symposium. [In Persian]
Reckers, P., & Samuelson, M. (2016). Toward resolving the debate surrounding slippery slope versus licensing behavior: The importance of individual differences in accounting ethical decision making. Advances in Accounting, 34, 1-16.
Safajoo, M., & Pourzamani, Z. (2021). The effect of professional skepticism on auditors' judgments and decisions regarding the mediating role of individual creativity. Journal of Management Accounting and Auditing Knowledge, 10(39), 337-349. [In Persian]
Sayrani, M., Khajavi, S., & Noshadi, M. (2009). An Examination of the Effects of Experience and Task Complexity on Audit Judgments. Accounting and Auditing Review, 16(55), 35-50. [In Persian]
Valiyan, H., Abdoli, M. R., & Karimi, S. (2018). Design of Interpretative-Structural Analysis Model (ISM) Factors Affecting Auditor's Professional Skepticism. AAPC, 2(4), 215-246. [In Persian]
Yang, L., Brink, A. G., & Wier, B. (2018). The impact of emotional intelligence on auditor judgment. International Journal of Auditing, 22(1), 83-97.
Yuosefi, M. O., & Banimahd, B. (2019). Impact of individual emotions on the auditor's objectivity. Financial Accounting Knowledge, 6(1), 163-185. [In Persian]
Zarefar, A., & Zarefar, A. (2016). The Influence of Ethics, experience and competency toward the quality of auditing with professional auditor scepticism as a Moderating Variable. Procedia-Social and Behavioral Sciences, 219, 828-832.