Toward a Model of Wisdom Determinants in the Auditing Profession

Auditing is a complex process posing great challenges because auditors often deal with complicated circumstances that they may have not experienced before or for which their knowledge may be irrelevant or inadequate. In auditing, although wisdom is crucial, it has yet to be defined explicitly. This study discusses the concept of wisdom and proposes a theoretical framework to describe three major virtues of wisdom in the auditing profession. The findings from a literature review together with an empirical analysis of a case study reveal that wise decision-making in auditing is an integration of three-E virtues: epistemic (general, technical, and subspecialty knowledge), enabling (exercise of professional judgment), and ethical (moral and professional skepticism). In order to perform a high-quality audit, the paper proposes the 3-E framework that explains how auditors should apply their knowledge, judgmental abilities, and ethical principles to make a wise audit decision

Introduction to Organizational Learning Minitrack

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The Financial Auditor’s Risk Behavior – The Influence of Age on Risk Behavior in a Financial Audit Context

A main issue in the audit process is the risk faced by the decision makers in every aspect of an audit process decision. The decision makers’ risk behaviour and their attitude towards risk is considered to be central to the way business risk, in general, and audit risk, in particular, is managed but no conclusive theory as to what influences the decision makers’ risk behaviour is commonly accepted. Although previous studies have brought arguments in favour of different factors considered to have an influence on the decision makers’ risk behaviour, what is not known is whether age has an influence on risk behaviour. This article advances the hypothesis that the auditor’s attitude towards risk is correlated with the auditor’s age, in a financial audit context. The methodological approach used was the survey of a representative sample using a carefully designed questionnaire and the use of statistical software to analyse the responses. The analysis of data collected revealed that there is a strong correlation between the financial auditor’s risk behaviour and the financial auditor’s age, confirming the research hypothesis as well as setting a starting point for future research.risk, age, financial audit, risk behaviour, correlation

Turnover intentions and job performance of accountants: The role of religiosity and spiritual intelligence

This paper examined the turnover intentions of accountants practicing with audit firms in Ghana. The study specifically, investigated the factors that influence the intentions of accountants to quit their jobs and further ascertained if the intentions to quit have any implications on the job performance of accountants. A survey method of research was adopted and a set of questionnaires was administered to accountants working with accounting firms certified and approved by the Institute of Chartered Accountants, Ghana (ICAG). The hypothesized relationships of the study were tested using the Partial Least Square-based structural equation modeling technique. The findings of this study demonstrate that organizational commitment, job satisfaction, emotional exhaustion, and religiosity are good predictors of turnover intentions of accountants. Further, our analysis also indicates that turnover intentions impact negatively on job performance of accountants. Our findings have two important implications. First, we highlight the relevance of the spiritual dimension of the determinants of turnover intentions by demonstrating with evidence that the extent of an individual’s attachment and commitment to religious values and beliefs have important implications on turnover intentions. Second, while job performance has been found to influence turnover intentions of employees, the evidence provided in this study suggests that turnover intentions are also a good predictor of employees’ job performance

Understanding the Auditor's Ethical Behaviour in the Professional Environment

[ES] Esta tesis ofrece una contribución significativa al campo de la ética de la auditoría a través de cinco estudios interconectados. El primer estudio (Capítulo dos) analiza cuarenta años de literatura académica, contemplando 114 artículos publicados en revistas prestigiosas de contabilidad y ética empresarial. La investigación, que abarca enfoques bibliométricos, de redes sociales y de contenido, descubre diversas brechas y oportunidades para investigaciones futuras. Resulta relevante destacar que, si bien la ética de la auditoría es un campo emergente, su foco principal ha sido en los países desarrollados, creando un vacío en los países en desarrollo. Además, se ha dado énfasis a los factores individuales de los auditores, minimizando la atención a los aspectos organizacionales. En un entorno empresarial en constante evolución, la tesis enfatiza la necesidad de orientar la investigación hacia implicaciones prácticas, para así mitigar errores previos y prevenir riesgos futuros. El segundo estudio (Capítulo tres) aborda una laguna en la literatura mediante un análisis de las actitudes de los auditores frente a distintos tipos de comportamientos corruptos en un contexto poco explorado, como es Palestina. Los resultados indican diferencias en la percepción de corrupción y sugieren que ciertos factores individuales de los auditores, como la edad y la posición, influyen en la aceptación de la corrupción. Este estudio brinda información valiosa para aquellos que buscan reducir la corrupción. El tercer estudio (Capítulo cuatro) emplea el Modelado de Ecuaciones Estructurales para examinar los factores que inciden en el Conflicto Ético (EC) y su impacto en la Intención de Rotación (TI). Se investiga el papel del Clima Ético (EtC) en la EC y su relación con los resultados laborales, así como el papel mediador de la EC entre el fracaso ético percibido del auditor y la TI, y entre la carga laboral y la TI. El cuarto estudio (Capítulo cinco) es pionero en la aplicación del marco de Demandas-Recursos del trabajo para investigar el impacto de varios factores en los resultados laborales de los auditores. Los hallazgos respaldan el marco JD-R, mostrando que el Conflicto Ético está asociado con resultados laborales adversos, especialmente la Intención de Rotación. Se enfatiza la necesidad de examinar los matices de los recursos laborales en la profesión de auditoría. El estudio puede ayudar a las empresas auditoras a mitigar los posibles efectos adversos del Empowerment en EC, ofreciendo pautas claras para la toma de decisiones y formación. Así, las firmas de auditoría pueden garantizar que los auditores cuenten con los recursos necesarios para manejar eficazmente las demandas laborales, lo que conduce a resultados laborales positivos y una profesión de auditoría más productiva y ética. En general, el estudio resalta la importancia de las demandas y recursos laborales para moldear los resultados laborales de los auditores y ofrece información relevante para informar políticas y prácticas en la profesión de auditoría.[CA] Aquesta tesi, dividida en cinc articles interrelacionats, aporta llum i novetat a l'àmbit de l'ètica de l'auditoria, abordant lacunes de la literatura existent. En primer lloc, es realitza un anàlisi exhaustiu de la literatura existent dels últims 40 anys, evidenciant l'ètica de l'auditoria com un camp emergent amb moltes oportunitats de recerca. Es remarca que la majoria d'estudis preexistents es centren en països desenvolupats, deixant a un costat els països en desenvolupament. També es denota una falta d'investigació respecte a la percepció de l'ètica entre auditors professionals. A més, malgrat que la presa de decisions ètiques i el raonament moral són temes recurrents, s'observa un desequilibri cap als factors individuals en lloc dels organitzatius. Finalment, s'assenyala la necessitat d'implicacions pràctiques per a la mitigació d'errors i riscos en l'entorn empresarial que evoluciona ràpidament. El segon article proporciona una nova visió de les actituds dels auditors cap a diferents comportaments corruptes, concretament a Palestina. Els resultats suggereixen que l'acceptació de la corrupció varia segons el tipus de comportament, amb una major acceptació envers el rol de polític, de treballador privat i de buròcrata. Es detecta una associació negativa entre l'acceptació de la corrupció i l'edat, així com diferències significatives en la percepció de la corrupció segons el gènere, la posició de l'auditor i l'educació. El tercer article investiga els factors que influeixen en el conflicte ètic i l'impacte d'aquest en la intenció de rotació. S'examina el paper moderador del Clima Ètic i la seva relació amb la intenció de rotació. A més, es considera el paper mediador del conflicte ètic entre el fracàs ètic de l'auditor percebut i la intenció de rotació, així com entre la càrrega de treball i la intenció de rotació. El quart article aplica per primera vegada el marc Job Demands-Resources (JD-R) per explorar l'impacte de diversos factors en els resultats laborals dels auditors. Les conclusions suporten el marc JD-R, amb el conflicte ètic associat positivament a resultats laborals adversos, especialment la intenció de rotació. Els recursos laborals, com el Clima Ètic i la Realització de la Carrera, tenen un efecte significatiu en les demandes laborals i els resultats, reduint tant el conflicte ètic com la intenció de rotació. De forma inesperada, es troba una associació positiva entre l'empoderament i el conflicte ètic. En resum, aquesta tesi ressalta la importància de les demandes laborals i els recursos en la determinació dels resultats laborals dels auditors. Proposa la necessitat de desenvolupar estratègies per afrontar els possibles efectes negatius de l'empoderament sobre el conflicte ètic, subratllant la necessitat de suportar les habilitats de presa de decisions dels auditors. Amb aquest objectiu, es suggereix que les empreses d'auditoria proporcionen als auditors els recursos necessaris per afrontar les demandes laborals de manera eficaç, la qual cosa conduiria a resultats laborals positius i a una professió d'auditoria més productiva i ètica. La recerca subratlla l'importància de considerar tant els efectes positius com els negatius dels recursos laborals per a desenvolupar estratègies orientades a fomentar el benestar dels auditors i el rendiment laboral. En conclusió, aquest estudi subratlla la importància de les demandes i recursos laborals en la conformació dels resultats laborals dels auditors i proporciona informació útil per a informar la política i la pràctica en la professió d'auditoria.[EN] This thesis contributes novel insights to the understudied field of auditing ethics through four linked studies. Chapter two offers a detailed review of literature over 40 years, amalgamating Bibliometric, Social Network and Content Analysis to scrutinize 114 articles from accounting and business ethics journals on the Web of Science database from 1980-2021. Through a thematic clustering of this literature, gaps are identified and potential research trajectories suggested. While auditing ethics is emerging as a field, most existing studies focus on developed countries, with a scarcity of work on developing nations and the ethical perceptions of professional auditors. Although individual auditors' ethical decision-making and moral reasoning have been widely studied, organizational factors received less attention. Recognizing the need for research to reflect the rapidly evolving business environment, this thesis posits more emphasis on practical applications of auditing ethics. Insights derived from this analysis provide the basis for the following three papers within this thesis. Chapter three of this thesis offers a unique exploration of auditors' attitudes towards different forms of corruption, with a specific focus on an under-studied context - Palestine. Utilizing ordinal regression and the Mann-Whitney U Test, an original survey of Palestinian auditors is analyzed. The findings indicate variability in auditors' perceptions of corruption, with corrupt behaviors linked to political, private, and bureaucratic jobs perceived as more acceptable than illicit receiving and giving practices. Acceptance of corruption was found to decrease with age across most corrupt behaviors surveyed. Gender differences also emerged, with female auditors exhibiting a higher tolerance towards various forms of corruption. The auditor's position and external education were also found to influence attitudes towards corruption. These findings have valuable implications for regulators and professional bodies looking to curb corruption, providing actionable insights to inform anti-corruption strategies. The fourth Chapter analyses an original survey of auditors using Structural Equation Modelling (PLS-SEM). to examine possible factors affecting Ethical Conflict (EC) and the impact of EC on Turnover Intention (TI). It investigates the moderating role of Ethical Climate (EtC) and its relationship with EC and job-related outcomes. It also examines the mediating role of EC between Perceived Auditor Ethical Failure (PAEF) and TI and also between Workload (WL) and TI. In the final chapter of this thesis, we pioneer the application of the Job Demands-Resources (JD-R) framework in assessing factors impacting auditors' work outcomes, utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. We find that ethical conflict (EC) is positively associated with adverse work outcomes, notably turnover intention (TI), validating the JD-R framework. Vital job resources, such as ethical climate (EtC) and career fulfilment (CF), markedly influence job demands and work outcomes, thus mitigating both EC and TI. Intriguingly, the study identifies a positive relationship between Empowerment (EM) and EC, arising when auditors with perceived empowerment lack actual decision-making authority, a finding which challenges the JD-R framework and underscores the necessity of scrutinizing the subtleties of job resources within the audit profession. Recognizing both positive and negative effects of job resources is key in devising strategies that enhance auditor welfare and job performance. The findings have implications for auditing firms, aiding in the mitigation of potential EM's negative impact on EC, and promoting decision-making capacity in auditors. Consequently, these firms can equip auditors with essential resources to effectively manage job demands, fostering positive work outcomes and an ethical audit profession.Dwekat, ZMM. (2023). Understanding the Auditor's Ethical Behaviour in the Professional Environment [Tesis doctoral]. Universitat Politècnica de València. https://doi.org/10.4995/Thesis/10251/19656

The ties that bind: Knowledge-seeking networks and auditor job performance

The dissemination of knowledge in audit firms is a critical process that has gone relatively unexamined by researchers. Using social network analysis to quantify the knowledge-seeking networks in a Big 4 audit firm in the U.S., we examine the association between the types and patterns of knowledge-seeking ties and individual auditor performance. Our initial finding is that auditor job performance is negatively associated with the number of knowledge-seeking ties. Further, our analyses demonstrate that this negative association is being driven by explicit knowledge-seeking rather than tacit knowledge-seeking activities and is stronger for higher-ranked auditors. Thus, knowledge-seeking by auditors may come at a cost, particularly when that knowledge is codifiable and when the seeking is done by those at higher levels of the firm. In a post-hoc analysis, we find that tacit knowledge-seeking ties to managers can be beneficial for auditor performance, and tacit knowledge-seeking ties to senior managers and partners is sometimes detrimental. In sum, this suggests that who is seeking knowledge and who is being sought for knowledge are both important for performance. Our findings may assist researchers to better understand how auditors leverage their social connections to learn, which in turn may affect audit efficiency and effectiveness. Further, audit firms might benefit from better understanding the consequences of knowledge-seeking from different sources and use this understanding to make decisions that maximize desirable information flows

Analysis of auditor performance by using covariance based structural equation modeling : a study of public accounting firms in Indonesia

The purpose of this study is to examine the factors that affect the performance of auditors. Factors tested were motivation, experience, and commitment as, and knowledge of regulations (the Public Accountant Act/Undang-Undang Akuntansi Publik). The study was conducted using 213 auditors from various accounting firms in Indonesia. Surveys were done by sending emails to public accounting firms and auditors directly. Data analysis was conduted using Covariance Based Structural Equation Modeling (CB-SEM). The results showed that motivation, experience, and commitment have a positive effect on performance. In addition, knowledge of regulations is able to strengthen the relationship between motivation, experience, and commitment to performance. This research contributes both on the practical and theoretical perspectives.peer-reviewe

The lived experience of becoming accounting partners in the Kingdom of Saudi Arabia : a phenomenological study

The accounting profession in Saudi Arabia has developed greatly. However, little is known about the making of a partner in accounting firms in Saudi Arabia, which is the central issue of this research. This qualitative study aims at describing the essence of experiences of becoming accounting partners in Saudi Arabia. The researcher employs phenomenology approach to understand the lived experience of accounting partners and how would such experience affect their career. It mainly aims to describe the different experiences of fifteen (15) Saudi partners working in various accounting companies in Saudi Arabia. The researcher conducted interviews to explore the most important challenges of the accountants to become a partner. The interviews were transcribed and analysed. Based on the analysis, there is essence of experiences of the partners; such skills enable new accountants, especially those who desire to join the accounting profession, were described. The findings revealed the need to have good mentors, being professionally qualified, i.e. having the SOCPA certification, and capability to deal with work environment as essence of the 15 experiences that were interviewed. The researcher also found that there are different skills that the partner must have include responsible leadership, professional communication, good marketing skills and excellent command of English. The findings of this study could be useful to Saudi accountants where the challenges and difficulties that they may face during their journey to become partners, could encourage them to go through the partnership journey and eliminate many of unreal thoughts about this journey. In addition, the findings of the current study could be useful to the official parties that organizing the accounting profession in Saudi Arabia, such as SOCPA, by highlighting the issues that impede the Saudi accountants to become partners, which may lead to mitigation of professional requirements by the SOCPA