The Effect of Moral Equality on Auditors' Ethical Behavior: The Moderating Role of Religiosity

Subject Areas : Ethics and accounting

Majid Moradi ^{1 *} , Sara Eghbal ²

1 - Assistant Professor, Department of Accounting, Saveh Branch, Islamic Azad University, Saveh, Iran
2 - Master's degree, Department of Accounting, Nasser Khosro Institute of Higher Education, Saveh, Iran

Received: 2024-06-02 Accepted : 2024-08-07 Published : 2024-09-26

Keywords: Religiosity, Ethical behavior, Professional ethics, Auditors, Moral equality,

Abstract :

Purpose: The purpose of this study was to investigate the impact of moral equality on auditors' ethical behavior, with a focus on the moderating role of religiosity.

Method: The present study is applied in terms of its purpose. Regarding the data collection method, it employs both fieldwork and a library study, while the implementation method is descriptive and survey-based. The statistical population of the study consists of 114 auditors employed at auditing firms in 2022. In the field section, a questionnaire was utilized to gather data. To assess ethical behavior, a 15-question survey developed by Lozier was employed. To evaluate religiosity, a 26-question questionnaire created by Glock and Stark (2005) was used. Finally, to measure ethical equality, an 18-question survey designed by Birger (2012) was administered.

Findings: The findings from the first hypothesis of the study indicate that moral equality plays a significant role in auditors' ethical behavior, with a high level of confidence in the results. This indicates that attention is given to the personality and traits of auditors, which contributes to the development of moral equality in their ethical behavior. The results of the second hypothesis demonstrated that moral equality plays a significant role in religiosity, with a high level of confidence. The results of the third hypothesis indicated that religiosity plays a significant role in the relationship between moral equality and the ethical behavior of auditors, with a high level of confidence. As the level of religiosity increases and auditors adhere more closely to religious teachings, the incidence of fraud in financial reporting decreases.

Conclusion: By prioritizing and promoting moral equality and ethical behavior in the workplace, management can foster an environment conducive to auditors, enabling them to report and perform their duties effectively while upholding these principles. Religion can significantly contribute to the practice of ethical behavior. One perspective on the relationship between religion and ethics is that religion provides guidance for leading a moral life. Furthermore, as levels of religiosity increase, the adherence to sound and professional ethical principles also rises. This indicates a positive and significant correlation between religiosity and ethics. Religious auditors do not commit less fraud; however, those who possess a strong sense of religiosity and have developed their professional ethics tend to commit less fraud. Auditors with higher ethical standards are less likely to engage in fraudulent activities. In other words, religious auditors who have not cultivated their ethical principles are more prone to committing fraud.

 

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