Investigating the Factors Influencing Auditors’ Confirmation Bias and Its Consequences on Audit Risk Assessment and Professional Judgment
Keywords:
Audit Risk, Audit Judgment, Auditor Confirmation BiasAbstract
This study aims to examine the factors affecting auditors’ confirmation bias and to analyze its consequences on audit risk assessment and professional judgment. The research employed an applied descriptive-survey design. The statistical population consisted of 392 auditors working in auditing firms across Iran, selected using convenience random sampling. Data were collected through a standardized questionnaire using a five-point Likert scale, with reliability confirmed by Cronbach’s alpha coefficients above 0.7. Data analysis was conducted using Structural Equation Modeling (SEM) via PLS software. The model tested the effects of informational source, information orientation, information complexity, supportive information preference, time budget pressure, and organizational culture on auditors’ confirmation bias, as well as its effects on audit risk assessment and auditor judgment. The results indicated that informational source, information orientation, and information complexity had no significant effect on auditors’ confirmation bias. However, supportive information preference, time budget pressure, and organizational culture had positive and significant effects. Moreover, auditors’ confirmation bias showed a positive and significant effect on both audit risk assessment and professional judgment. The Goodness-of-Fit index (GOF = 0.313) confirmed a strong model fit. The findings suggest that organizational and behavioral factors such as time pressure and corporate culture play a crucial role in shaping auditors’ confirmation bias. Enhancing professional skepticism, managing workload effectively, and promoting ethical organizational cultures can reduce confirmation bias and improve audit quality.
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