The Role of Auditors' Professional and Organizational Identity in the Commercialization of Auditing Firms

Document Type : Original Article

Authors

1 Ph.D. Stu. Accounting, chalous Branch,Islamic Azad University, chalous, Iran

2 Department of Accounting, chalous Branch,Islamic Azad University, chalous, Iran

10.30495/ijfma.2023.21716

Abstract

Abstract
The aim of this study was to investigate the professional and organizational identity of auditors and commercialization in auditing firms. In order to achieve the research goal, about 384 questionnaires were distributed and collected among the auditors of auditing firms in Iran as a statistical sample. The data collected by the questionnaires were analyzed by SPSS24 and Smart PLS3 software using structural equation modeling. The results of the analysis of research hypotheses is using structural equation modeling at 99% confidence level indicated that the professional identity and organizational identity of auditors have a positive and significant the effect on the market orientation of auditing firms. The professional identity and organizational identity of auditors have a positive and significant effect on the customer orientation of auditing firms. The professional identity and organizational identity of auditors have a positive and significant effect on the direction of the processes of auditing firms.

Keywords

References

Alvehus, J. and Spicer, A. (2012). Financialization as a strategy of workplace control in professional service firms. Critical Perspectives on Accounting, 23(7), 497-510.
2) Anderson-Gough, F., Grey, C. and Robson, K. (2000). In the name of the client: the service in two
professional services firms. Human Relations, 53(9), pp. 1151-1173.
3) BaniMahd, B. & Nejati, A. (2016). The relationship between organizational culture and auditors' work commitment. Financial Accounting and Auditing Research, 8 (30), 119-138.
4) Barzideh, F., Babajani, J., Qorbanizadeh, V. & Abdollahi, A. (2018). Designing and explaining the identity model in audit judgment. Knowledge of Financial Accounting, 5 (2), 1-34.
5) Broberg, P. (2013). The auditor at work: a study of auditor practice in Big 4 audit firms. PhD
dissertation, Lund University, Lund.
6) Broberg, P., Tagesson, T., Argento, D., Gyllengahm, N. and Mårtensson, O. (2017). Explaining the influence of time budget pressure on audit quality in Sweden. Journal of Management and Governance, 21(2), pp. 331-350.
7) Broberg, P., Umans, T. and Gerlofstig, C. (2013). Balance between auditing and marketing: an explorative study. Journal of International Accounting, Auditing and Taxation, 22(1), pp. 57-70.
8) Broberg, P., Umans, T., Skog, P. and Theodorsson, E. (2018). Auditors’ professional and organizational identities and commercialization in audit firms. Accounting, Auditing & Accountability Journal, 31(2), pp.374-399.
9) Carrington, T., Johed, G. and Öhman, P. (2011). The organisational context of professionalism in
auditing. Paper presented at Critical Perspectives on Accounting Conference, Clearwater, FL.
10) Freidson, E. (2001). Professionalism: The third logic, Chicago: University of Chicago Press.
11) Heckman, D.R., Steensma, K.H., Bigley, G.A. and Hereford, J.F. (2009). Effects of organisational and professional identification on the relationship
52 / The Role of Auditors' Professional and Organizational Identity in the Commercialization …
Vol.8 / No.31 / Autumn 2023
between administrators’ social influence and professional employees’ adoption of new work behaviour. Journal of Applied Psychology, 94(5), 1325–1335.
12) Jaworski, B., Kohli, A. and Sahay, A. (2000). Market-driven versus driving markets. Journal of the Academy of Marketing Science, 28(1), pp. 45-54.
13) 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, 13(2), 103–123.
14) Mashhadi Qareh Qiye, H., BaniMahd, B., Forqandoust Haqiqi, K. & Morad Zadeh Fard, M. (2019). Machiavellianism, money-loving, customer-oriented culture and buying audit commentary by the client. Management Accounting and Auditing Knowledge, 8 (29), 161-174.
15) McGarry, C. and Sweeney, B. (2007). Clan type controls in audit firms – audit seniors’ perspective. Irish Accounting Review, 15(2), 37–59.
16) Mousavi Shiri, M., Salehi, M. & Ahmad Nejad, M. (2015). Investigating the relationship between auditors' professional commitment and organizational commitment with inefficient audit behavior. Accounting and Auditing Research, 27, 1-26.
17) Picard, C.F. (2016). The marketization of accountancy. Critical Perspectives on Accounting, 34, 79-97.
18) Ponomareva, Y., Uman, T., Broberg, P., Vinberg, E. and Karlsson, K. (2020). "Commercialization of audit firms and auditors’ subjective well-being. Meditari Accountancy Research, https://doi.org/10.1108/MEDAR-10-2018-0384.
19) Tabesh, Z., Abdoli, M. R. & YavarPour, H. (2020). Investigating the effect of aura on the career path of the auditor. Accounting and Auditing Research, 12 (45), 89-112.
20) Vandenhaute, M.-L., Hardies, K. and Breesch, D. (2019). Professional and Commercial Incentives in Audit Firms: Evidence on Partner Compensation. European Accounting Review, https://doi.org/10.1080/09638180.2019.1642223.
21) Wen, W. (2019). The institutionalisation of commercialism in the audit profession. Journal of Accounting in Emerging Economies, https://doi.org/10.1108/JAEE-02-2019-0049.
22) Zareie, R. & Ranjbar, M. H. (2019). Company Business Strategy and Auditor Reporting, 17th National Accounting Conference of Iran, Qom, Farabi Campus, University of Tehran.
International Journal of Finance & Managerial Accounting
Volume 8, Issue 31 - Serial Number 31
September 2023
Pages 41-52

Files

Share

How to cite

Statistics