Analysis of the Role of Auditor’s Professional Judgment and Audit Quality in the Relationship between Organizational Culture and Business Ethics (Case Study: Tehran Association of Accountants)
Keywords:
Organizational Culture, Business Ethics, Legal Quality of Auditing Assignments, Professional Auditor JudgmentAbstract
The legal quality of audit engagements is one of the key factors in enhancing financial transparency and providing assurance to organizational stakeholders. Organizational culture and business ethics, as influential factors on this quality, play a vital role in improving auditors’ performance. This study aims to analyze the impact of these factors and the moderating role of the auditor’s professional judgment, seeking to provide a novel insight toward strengthening audit engagements. The objective of this research is to examine the effect of organizational culture and business ethics on the legal quality of audit engagements, considering the moderating role of the auditor’s professional judgment. According to the classification of research by purpose, this is an applied study, and in terms of data collection method, it is survey-based. The statistical population consists of financial managers and employees of institutions affiliated with the Association of Certified Accountants in Tehran. Based on Morgan’s table, the sample size was determined to be 384 individuals, and the sampling method was random. The validity and reliability of the questionnaire were confirmed, and data were analyzed using PLS3 software. The findings of this study indicate that improving the legal quality of audit engagements can be achieved through enhancing organizational culture and adherence to business ethics. Moreover, the moderating role of the auditor’s professional judgment shows that fair and appropriate determination of audit fees can strengthen the effectiveness of audit engagements. These results are beneficial for company managers, auditors, and regulators, as emphasizing these factors can enhance financial transparency and trust. Ultimately, these achievements will lead to improved financial health and sustainable organizational performance.
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Copyright (c) 1404 Mohsen Hashemi Gohar, Farshid Nadaei Tolon, Sima Hadian (Author)
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