International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Self-Fulfilling Prophecy and Bias of Independent Auditors: Based on the Concept of Galatea through Structural Equations

Document Type : Original Article

Authors
Vali Allah Aghajari 1
ali Mahmoudi 2
Saeed Nasiri 3
Ahmad Kaabomeir 4
1 Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.
2 Assistant Professor, Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran
3 Assistant Professor, Department of Accounting, Islamic Azad University, Ahvaz Branch, Ahvaz, Iran
4 Assistant Professor, Accounting Department, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran
10.30495/ijfma.2024.76382.2083
Abstract
Abstract

Independence in the auditing profession is actually an abstract concept that cannot be directly observed, and it is often described as a state of mind which is related to concepts such as impartiality, honesty, trustworthiness, and personality. There are two aspects for independence in most of the existing definitions in the auditing profession. One is true independence (intrinsic) and the other is apparent independence, so that true (intrinsic) independence is considered "absence of mental tendency in the implementation of audit operations" and apparent independence is "avoidance of conditions that show the auditor in conflict with the obvious interests of the employer".. The research data collection tool was a questionnaire, which was used to analyze the collected data using partial least squares analysis. The target population of the research was the auditors who are members of the audit organization and private sector audit institutions. They were selected through random sampling and examined in a period of 6 months. Based on the obtained results, it was determined that self-fulfilling prophecy has a positive and significant effect on auditors' bias. In fact, the result of this research shows that the existence of positive expectations in the context of the society and the professional environment creates more dynamics in the effective and independent functions of auditors because the motivations can increase the professional philosophy of auditors in the process of work and make them have professional opinions and judgments, regardless of any influence and possible dependencies when making decisions.
Keywords
Keywords: Self-Fulfilling Prophecy
Auditors' Bias
Galatea Theory
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