The effect of client’s management characteristics on auditor’s trust
Subject Areas : Management Accountingمحمد علی باقرپور ولاشانی 1 , سمیه ظفرزاده 2
1 - مسئول مکاتبات
2 - ندارد
Keywords: Trust, Professional Skepticism, personal characteristics of cl,
Abstract :
AbstractThis research investigated the trust as an important underlying factor in understanding howthe relationships between auditor and client’s management are established and developedbetween179 persons of the members of IACPA as senior auditor, supervisor, seniorsupervisor, and partner or manager of the audit firm, who have the ability to assess audit risksand make decision to trust or not.There are different factors affecting auditor’s trust on client’s management and evidencespresented by them. But this research investigated the effects of clients’ managementcharacterestics as a very important factor.As there was no standard questionnaire to conduct the research a questionnaire wasdesigned by considering the nature and subject of the research and based on the results ofprior researches. By using this questionnaire, the type of impact (increase, decrease or noimpact) and the importance (very low, low, medium, high or very high) of 18 items oftrustee's characteristics (client's management) under 5 groups (classification): ability ofmanagement, benevolence of management, management compliance with ethical norms,accountability of management, and reputation of management on auditor's trust on client’smanagement and evidences presented by them have been investigated.The collected data was analyzed by applying Wilcoxon Signed Ranks Test, and One-Sample T Test. The results of analyzing auditors’ opinion indicate that managementcompliance with ethical norms, ability of management, management accountability, andmanagement reputation are respectively the most important factors affecting auditors’ trust.