Self-Fulfilling Prophecy and Auditors Behavioral Inertia: An interpretation based on Peugeot's Philosophical Theory

Document Type : Original Article

Authors

1 PhD Student, Department of Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Assistant Professor, Department of Accounting, Roodehen Branch, Islamic Azad University, Tehran, Iran

Abstract

Abstract
Environmental auditing profession, because of the responsibility that is responsible, the field of complex and turbulent is when the stresses of the profession, should the psychological and behavior to counter the influence and mediation have to maintain its independence. One of the concepts that can theoretically contribute to the multidimensionality of synergies with greater independence in the audit profession is the inertial capabilities that, as an antithesis to organizational behavior, in the audit profession can contribute to capacity building for auditors. The purpose of this research is Self-Fulfilling Prophecy and Auditors Behavioral Inertia based on Peugeot's Philosophical Theory. The research data collection tool was a questionnaire that partial least squares analysis was used to analyze the collected data. The target population of the study was auditors who are members of the auditing organization and private sector auditing firms who were selected through random sampling and examined over a period of 6 months. Based on the results, it was found Self-Fulfilling Prophecy has a positive and significant effect on Auditors Behavioral Inertia. In fact, the results of this study show, the existence of positive expectations in the context of society and the professional environment creates more dynamism in the effective functions of auditors' independence because motivations can help increase the professional philosophy of auditors in their career path and cause them to make professional comments and judgments when making decisions, regardless of any possible influence and dependencies.

Keywords

References

  • Adam, S. H., Ali. m. (2014). Evaluating the reflections of advisory services on the external auditors’ independence in the environment of Sudan business. Journal of the Faculty of Economy Scientific, 1(4): 263-286.
  • Adams, T., J. Krishnan, and J. Krishnan. (2017). Client influence and auditor independence revisited: evidence from auditor resignations. Electronic copy available at: https://ssrn.com/abstract=3024877.
  • Ahmad, M, B. (2012). Auditor independence in Malaysia: the perceptions of loan officers and professional investors (Doctoral dissertation, Cardiff University).
  • Alleyne P., Devonish, D. (2006). Perceptions of Auditor Independence in Barbados. Managerial Auditing, 21(6): 621-635.
  • Ansari, A., Talebi, A., Kamali Kermani, N. (2011). A Survey of the Impact of Audit and the Same Time non-audit (Accounting, Managing and Consulting) Services on Auditor Independence. Empirical Research in Accounting, 1(1): 63-78. (In Persian)
  • Asghari Aghdam, B., Mahjob, A. (2014). Self-fulfilling prophecy and its impact on motivation and performance of National Iranian Gas Company staffs. Journal of Public Administration, 6(4): 625-646. (In Persian)
  • Bakhtiari, J., Poorzamani, Z., Royaee, R. (2019). Guanxi & Auditor's Independence: social connections Theory Test. Journal of Management Accounting and Auditing Knowledge, 8(30): 27-40. (In Persian)
  • Banimahd B, Golmohamadi A. (2017). Investigating the relationship between ethical climate and Whistleblowing through optional reporting model in Iran's audit profession. AAPC, 2(3): 61-86. (In Persian)
  • Bartlett, R.W. (1993). A Scale of Perceived Independence: New Evidence on an Old Concept. Journal of the Faculty of Economy Scientific, 1(6): 215-237.
  • Berglund, N.R. and Eshleman, J.D. (2019). Client and audit partner ethnicity and auditor-client alignment, Managerial Auditing Journal, 34(7): 835-862. https://doi.org/10.1108/MAJ-10-2018-2036
  • Boiral, O., Heras-Saizarbitoria, I. and Brotherton, M.-C. (2019). professionalizing the assurance of sustainability reports: the auditors’ perspective, Accounting, Auditing & Accountability Journal, 33(2): 309-334. https://doi.org/10.1108/AAAJ-03-2019-3918
  • Cao, Q., Hu, N. and Hao, L. (2019). Does client industry importance affect auditor independence?, Managerial Auditing Journal, 35(4): 575-595. https://doi.org/10.1108/MAJ-02-2019-2179
  • Chen, H., Tian, Y. and Daugherty, P.J. (2009), “Measuring process orientation”, The International Journal of Logistics, Vol. 20 No. 2, pp. 213-227.
  • Ghebremichael, A. (2019). Determinants of behavioral intentions in the audit market, International Journal of Quality and Service Sciences, 11(1): 87-103. https://doi.org/10.1108/IJQSS-10-2017-0091
  • Godkin, L. & Allcorn, S. (2008). Overcoming Organizational Inertia: A Tripartite Model for Achieving Strategic Organizational Change. Journal of Applied Business and Economics, 8 (1): 82-95
  • Guiral-Contreras, A., E, Ruiz, and W, Rodgers. (2011). To what extent are auditors’ attitudes toward the evidence influenced by the self-fulfilling prophecy? Auditing, 30(1), 173-190. http://dx.doi.org/10.2308/aud.2011.30.1.173
  • Hersey, P., and K, H, Blanchard. (1989). management of organizational behavior: utilizing human resources, 5th Ed, Prentice Hall, Inc.
  • Ju Lin, Y. (2014). The Relation between Auditor Switching and Self-fulfilling Prophecy Effect: The Bivariate Probity Model, Asian Journal of Finance & Accounting, 6(1): 367-387.
  • Konig, A., Schulte, M., Enders, A. (2012). Inertia in response to non-paradigmatic change: The case of meta-organizations, Research Policy, 41(8):1325-1343
  • Lilius, J, M., Worline, M, C., Maitlis, S., Kanov, J., Dutton, J, E., Frost, P. (2008). The contours and consequences of compassion at work, Journal of Organizational Behavior, 29(2): 193-218. https://doi.org/10.1002/job.508
  • Lin, C., K.K. Raman, L. Sun, and D. Wu. (2017). The effect of ambiguity in an auditing standard on auditor independence: Evidence from nonaudit fees and SOX 404 opinions. Journal of Contemporary Accounting & Economics 13(1): 37-51.
  • Louwers, T. J., F, M. Messina, and M, D. Richard. (1999). The auditor's going-concern disclosure as a self-fulfilling prophecy: A discrete-time survival analysis. Decision Sciences, 30(3), 805-823. http://dx.doi.org/10.1111/j.1540-5915.1999.tb00907.x
  • Mael, F. and Ashforth, B.E. (1992), “Alumni and their alma mater: a partial test of the reformulated model of organizational identification”, Journal of Organizational Behavior, Vol. 13 No. 2, pp. 103-123.
  • Mautz, R. K., Sharaf. Sh, A. (1961). The Philosophy of Auditing, American Accounting Association.
  • Merton, R, K. (1948). The Self-fulfilling prophecy, Antioch Review Journal, 8(2): 193-210.
  • Nikbakht Z, Khalifeh Soltani S A, Hoseini S A, Maddahi A, Vedadhir A. (2018). Compilation of Auditor's Independence Model, Quarterly Financial Accounting Journal, 10(38): 90-112. (In Persian)
  • Polites, G. L. & Karahanna, E. (2012). Shackled to the Status Quo: The Inhibiting Effects of Incumbent System Habit, Switching Costs, and Inertia on New System Acceptance. MIS Quarterly, 36(1): 21-42.
  • Rosental, R. and L. Jacobsen. (1968). Pygmalion in the classroom: Teacher expectation and public intellectual development. Holt, Rinehart and Winston. New York.
  • Rosental, R. and L. Jacobsen. (1968). Pygmalion in the classroom: Teacher expectation and public intellectual development. Holt, Rinehart and Winston. New York.
  • Salawu, M. K. (2017). Factors influencing auditor independence among listed companies in Nigeria: generalized method of moments (GMM) approach. International Journal of Economics and Finance 9(8): 191-208.
  • Sampet, J., Sarapaivanich, N., Patterson, P. (2019). The role of client participation and psychological comfort in driving perceptions of audit quality, Asian Review of Accounting, 27(2): 177-195. https://doi.org/10.1108/ARA-09-2017-0144
  • Shinde, J, S., T. Stone, and J. Willems. (2013). The Self-Fulfilling Prophecy’s Effect on an Auditor’s Issuance of a Going Concern Opinion, Journal of Accounting and Auditing, 31(4): 1-12.
  • Sillic, M. (2019). individual inertia in explaining non-compliant security behavior in the Shadow IT context, Computers & Security, 80(5): 108-119
  • Soleimani, S., Shorvarzi, M., Noori Tupkanloo, Z. (2018). The Effects of the Threats on the Auditor’s Independence. Journal of Financial Accounting Knowledge, 5(3): 69-80. (In Persian)
  • Strigter, M., Cooper, C. (2015). Overcoming Inertia, In: Solving the Strategy Delusion. Palgrave Macmillan, London.
  • Suyono, E., Farooque, O. (2019). Auditors’ professionalism and factors affecting it: insights from Indonesia, Journal of Asia Business Studies, 13(4): 543-558. https://doi.org/10.1108/JABS-03-2018-0073
  • Suyono, E., Farooque, O. (2019). Auditors’ professionalism and factors affecting it: insights from Indonesia, Journal of Asia Business Studies, 13(4): 543-558. https://doi.org/10.1108/JABS-03-2018-0073
  • Watzlawick, P. (1984). Self-Fulfilling Prophecies, In The Production of Reality: Essays and Readings on Social Interaction by O’Brien, J., 5th Edition, California: Pine Forge Press.

Files

Share

How to cite

Statistics