Investigating the Moderating Role of Audit Firms Size in the effect of Self-efficacy on Auditors' Judgment and Decision making
Subject Areas :
mina rezaie
1
(
department of accounting, najafabad branch, islamic azad university, najafabad, iran
)
Arezoo Aghaei chadegani
2
(
Department of accounting, najafabad branch, islamic azad university, najafabad, iran
)
ehsan kamali
3
(
department of accounting, najafabad branch, islamic azad university, najafabad, iran
)
Keywords: Auditors&rsquo, Judgment, Auditors&rsquo, Decision Making, self-efficacy, Audit Firm Size, Audit Quality,
Abstract :
Professional judgment and decision-making are key skills in auditing processes, and the auditor's ability to make high-quality decisions and judgments is under their personality traits. Auditor's self-efficacy is a kind of internal recognition of individual capabilities and characteristics that causes a better understanding of the job and improves the auditor's expert opinions. Therefore, the present study proposed and tested the effect of self-efficacy as factor affecting auditors' judgment and decision-making. This research is an applied research in terms of purpose and descriptive-survey in nature. Data collection in this research was done through a questionnaire made by the researcher among the members of the public accountants community of Iran using random sampling and 132 questionnaires were analyzed. Content validity was confirmed using the opinions of experts and university professors, and diagnostic validity was confirmed using the Fornell and Larcker index. After the initial implementation of the reliability test with Cronbach's alpha, the relationships between variables and factors have been investigated and confirmed through confirmatory factor analysis and path analysis. Smart PLS statistical software was used to test the hypotheses. The findings showed that the auditor's self-efficacy has a positive and significant effect on the auditor's judgment and decision-making. Auditors who have more self-efficacy make more effort to judge and make professional decisions. The size of the audit firm does not have a significant moderating role on the relationship between self-efficacy and auditor's judgment and decision-making.