International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

The effect of auditors' mental structure on the independent auditor's work process with emphasis on the mediating role of continuous auditing

Document Type : Original Article

Authors
Sarvenaz Gheitanchian 1
mohsen hamidian 2
Zohreh Hajiha 3
Maryam Sarraf 4
1 Department of Accounting, Kish International Branch, Islamic Azad University, Kish Island, Iran
2 Assistant Professor, Department of Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran
3 Associate Professor, Department of Accounting, Islamic Azad University, Tehran East Branch, Tehran, Iran
4 Assistant Professor, Basir Institute of Higher Education, Department of Psychology, Abik, Iran
10.30495/ijfma.2023.70858.1949
Abstract
Abstract

The use of continuous auditing and monitoring tools typically involves a long continuous chain of company operations. The purpose of this research is the influence of the auditors' mental structure on the work process of the independent auditor, emphasizing the mediating role of the continuous audit process. The research hypotheses were analyzed using structural equation method through Smart PLS software. According to the purpose of the research of the statistical community, auditors working in auditing organizations and auditing institutions are considered as members of the public accountant’s society of Iran. The number of respondents was 304. The snowball sampling method has been used to collect the required data in qualitative research. In this method, the future members of the sample are selected through the former members of the sample. Since the significance coefficients of the variables are higher than the absolute value of 1.96, the hypotheses of the research are confirmed; then it leads to believe that there is a meaningful relationship between the auditors' mental structure and the independent auditor's work process, and also continuous auditing plays a meaningful mediating role on the relationship between the auditors' mental structure and the independent auditor's work process. Continuous auditing is a vital tool for monitoring and providing assurance about business and financial information. In the international financial reporting environment, companies can benefit from the continuous audit system to ensure the quality of financial information reported online.
Keywords
Keywords: mental structure of auditors
audit work process
continuous audit
  • Adili, M., Khodamipour, A., Pour Heydari, O. (2019) Investigating the effect of the ethical culture of the auditing institute and the auditors' personality types on the auditor's objectivity. Accounting and Auditing Research, No. 46, 5-20.
  • ARdelia Z, A. (2022). The Influence of Ethics, Experience and Competency toward the Quality of Auditing with Professional Auditor Sceptisism as a Moderating Variable, Social and Behavioral Sciences, 219(1): 828-832
  • Abbasian Feridouni et al. (2014). Examining the dimensions of the philosophical mindset of auditors working in the auditing profession, Quarterly Journal of Accounting and Management Auditing Knowledge, 14, 43-52
  • Ball, R., & Shivakumar, L. (2006). The role of accruals in asymmetrically timely gain and loss recognition. Journal of accounting research, 44(2), 207-242.
  • Basuony, M. A., & Mohamed, E. K. (2014). Determinants of internet financial disclosure in GCC countries. Asian Journal of Finance & Accounting, 6(1), 70.
  • Bhattacharjee, S., Maletta, M., & Moreno, K. K. (2013). Auditors' judgment errors when working on multiple tasks and in multiple client environments: a research summary and practice implications. Current Issues in Auditing, 7(1), P1-P8.
  • Brown, C. E., Wong, J. A., & Baldwin, A. A. (2007). A review and analysis of the existing research streams in continuous auditing. Journal of Emerging Technologies in Accounting, 4(1), 1-28.
  • Cangemi P.M. (2015). From Continuous Auditing to ContinuousMonitoring, ISACA Journal, 4, 1-4.
  • Ebrahimi Kerdar, A., & Akhoundi, O. (2019). An Integrated Continuous Auditing Approach. Accounting and Auditing Studies, 8(32), 13-28.
  • Hajiha, Zahra. (2014) Investigating and identifying factors affecting the implementation of continuous audit based on internal audit of companies. Management Accounting, 24,6 5-80.
  • Hela, W.R, Sofla, Amin S., Svanström, T. (2020). The effect of professional skepticism on auditor compensation and auditor opinions. Working Paper, University of Auckland, Business School, Seminars and Events
  • Javidi, Kazem, R., Ramzan A., Ghadrat E., Bani M. (2017) Investigating the effect of interpretive thinking on the auditor's judgment and decision-making: based on the theory of interpretation level of psychological distance. Financial Accounting Quarterly, 11th year, Rial No. 39, 141-169.
  • Liberman, N., & Trope, Y. (2008). The psychology of transcending the here and now. Science, 322(5905), 1201-1205.
  • Lindberg, D. L., & Maletta, M. M. (2003). An examination of memory conjunction errors in multiple client audit environments. Auditing: A Journal of Practice & Theory, 22(1), 127-141.
  • Latanˬ ˬ Nˬ Azlina.ˬ And Jˬ Julita. (2021). Pengaruh Komitmen Profesionalˬ Lingkungan Etikaˬ Sifat Machiavellian Dan Personal Cost Terhadap Intensi Whistleblowing Dengan Retaliasi Sebagai Variabel Moderating (Studi Empiris Pada Perusahaan Perbankan Yang Berada Di Kota Pekanbaru). Riau University 4(1): 2030-2044.
  • Mahmood, P. (2022). 'An Ethical Approach to the Choices Faced by Auditors', Critical Perspectives on Accounting, 21(3): 415-431.
  • Nikbakht, M., & Hosseinpour, A. (2019) The effect of management motivations towards profit management and the relationship of the audit committee with the independent auditor on the quality of the auditor's judgment, two quarterly journals of value and behavioral accounting, fifth year, ninth issue, 224-189.
  • O'Donnell, E., & Schultz Jr, J. J. (2005). The halo effect in business risk audits: Can strategic risk assessment bias auditor judgment about accounting details?. The Accounting Review, 80(3), 921-939. Rasso ????
  • Rahmaniya, E., & Yaqub Nejad, A. (2016). Factors affecting the ethical decision making of internal auditors. Accounting knowledge and management audit, 145-166.
  • Rasso, Jason Tyler. Psychological distance: The relation between construals, mindsets, and professional skepticism. University of South Florida, 2013.
  • Schlenker, B. R., & Forsyth, D. R. (1977). On the ethics of psychological research. Journal of Experimental Social Psychology, 13(4), 369-396. Grifits???
  • Soleimani A., Gholamreza and Shafizadeh, Bahar. (2013) continuous audit and continuous monitoring; Challenges of the past, opportunities ahead. Auditor Magazine, 72, 94-100
  • Smith, F. (2011). Philosophical mentality in educational management, translated by Mohammad Reza B., Tehran, Kamal Tarbiat Publications
  • Sharfi, M. (2011). Top Thought, Tehran, Soroush Publications.
  • Porfaz, A., Kikhanjad, M. , Faraji Aramaki, A. (2018). Investigating the relationship between the philosophical mindset and its dimensions with the performance of managerial duties by the principals of secondary schools in Zahdan city in the academic year of 2018, Autumn Education and Tarbiat Journal, No. 107, 51-68.
  • Vasarhelyi, M. A., Teeter, R. A., & Krahel, J. P. (2010). Audit education and the real-time economy. Issues in Accounting Education, 25(3), 405-423.
  • Wieb, J. R., and S. G. Sutton. (2019). "Continuous Auditing in ERP system environments: The current state and future directions". Journal of Information Systems, 24 (1): 91-112.
  • Weins, S., Alm, B., Wang, T. (2017). "An Integrated Continuous AuditingApproach". Journal of Emerging Technologies in Accounting. In-Press.
  • Zoria, D, D., Hageman, A, M., Radtke, R, R. (2021). The Effects of Professional Role, Decision Context, and Gender on the Ethical Decision Making of Public Accounting Professionals. Behavioral Research in Accounting: Spring, 27(1): 55-78.https://doi.org/10.2308/bria-51090