International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

The Impact Pattern of Psychological Factors on the Business of Audit Firms Affiliated with the Iranian Association of Certified Public Accountants

Document Type : Original Article

Authors
musa hasanzadeh 1
ali baghani 2
mohsen hamidian 3
zohreh hajiha 4
1 PhD student in Accounting, Department of Accounting, ST. C. Islamic Azad University, Tehran, Iran
2 Assistant Professor Department of Accounting, ST. C. Islamic Azad University, Tehran, Iran
3 Associate Professor, Department of Accounting, ST. C. Islamic Azad University, Tehran, Iran
4 Full Professor, Department of Accounting, ST. C. Islamic Azad University, Tehran, Iran
10.22034/ijfma.2025.78855.2321
Abstract
The research methodology is field-based and employs factor analysis. The statistical population consists of individuals active in the auditing profession, with questionnaire data collected in 2025 (1404 in the Iranian calendar). The approach used in this study is mixed: initially, through the multi-faceted grounded theory method—using interviews and a review of previous research—the variables were identified. Using the Lawshe index, the final influential factors were determined, and factor analysis was subsequently applied to analyze the research questions. The results indicate that customer trust and perceptions, workplace stress and psychological pressure, ethical conflicts and difficult decision-making, client behaviors and expectations, leadership psychology and organizational culture, the impact of technology on employee psychology, the role of individual motivation and job satisfaction, the influence of media and public opinion, and coping with psychological challenges all significantly affect the business performance of audit firms.
Keywords: Psychological factors, job stress, client expectations, ethical conflicts, audit firm business
Keywords
Psychological factors
job stress
client expectations
ethical conflicts
audit firm business
  1. Eman, P., Hemmati, H., & Kordlouei, H. (2023). Psychological characteristics of auditors and audit report delay. Professional Auditing Research, 3(12), 106–127. https://doi.org/10.22034/jpar.2023.2004106.1174
  2. Aminpour Hassan Kiadeh, A., Moradzadeh Fard, M., Shokri Cheshmeh Sabzi, A., & Hosseini, S. H. (2024). Psychological capital, self-evaluation, job engagement, and dysfunctional audit behavior. Accounting and Management Auditing Knowledge, 13(52), 29–46.
  3. Bakhtiari, A., Hejazi, R., & Jerjerzadeh, A. (2021). Identifying factors influencing auditors’ psychological characteristics in audit judgment. Accounting and Management Auditing Knowledge, 10(37), 143–158.
  4. Talari, Sh., Behzadian, F., Safari Gerayli, M., & Saeedi, R. (2023). Developing a model of auditors’ psychological well-being and evaluating identified themes in the auditing profession. Empirical Studies of Financial Accounting, 20(78), 221–272. https://doi.org/10.22054/qjma.2023.73810.2462
  5. Fakhari, H., & Fazlollahpour, N. M. (2022). The effect of psychological capital on achievement motivation, auditors’ judgment, and the performance of audit firms. Bi-Annual Journal of Value and Behavioral Accounting, 7(13), 154–199.

International Sources:

  1. Alles, M., & Gray, G. L. (2024). The marketing on Big 4 websites of Big Data Analytics in the external audit: Evidence and consequences. International Journal of Accounting Information Systems, 54, 100697.
  2. Chen, Y. H., Wang, K. J., & Liu, S. H. (2023). How personality traits and professional skepticism affect auditor quality? A quantitative model. Sustainability, 15(2), 1547.
  3. Dobrowolski, Z., & Sułkowski, Ł. (2021). Business model canvas and energy enterprises. Energies, 14(21), 7198.
  4. Dobrowolski, Z., Sułkowski, Ł., & Panait, M. (2022). Using the business model canvas to improve audit processes. Problems and Perspectives in Management, 20(3).
  5. Francis, J. R. (2004). What do we know about audit quality? The British Accounting Review, 36(4), 345–368.
  6. Faiz, Z., Syaiful, A., & Dina, N. (2021). Psychological capital mediation on the relationship between auditor experience and acceptance of under-reporting time: An Indonesian study. Reviu Akuntansi dan Keuangan, 11(1), 224–237.
  7. Jackson, A. B., Moldrich, M., & Roebuck, P. (2008). Mandatory audit firm rotation and audit quality. Managerial Auditing Journal, 23(5), 420–437.
  8. Johnsen, Å., Reichborn‐Kjennerud, K., Carrington, T., Jeppesen, K. K., Taro, K., & Vakkuri, J. (2019). Supreme audit institutions in a high‐impact context: A comparative analysis of performance audit in four Nordic countries. Financial Accountability & Management, 35(2), 158–181.
  9. Knechel, W. R., Krishnan, G. V., Pevzner, M., Shefchik, L. B., & Velury, U. K. (2013). Audit quality: Insights from the academic literature. Auditing: A Journal of Practice & Theory, 32(Supplement 1), 385–421.
  10. Magretta, J. (2002). Why business models matter. Harvard Business School Publishing Corporation.
  11. O’Neil, I., & Ucbasaran, D. (2016). Balancing “what matters to me” with “what matters to them”: Exploring the legitimation process of environmental entrepreneurs. Journal of Business Venturing, 31(2), 133–152.
  12. Samagaio, A., & Felício, T. (2022). The influence of the auditor’s personality in audit quality. Journal of Business Research, 141, 794–807.
  13. Sort, J. C., & Nielsen, C. (2018). Using the business model canvas to improve investment processes. Journal of Research in Marketing and Entrepreneurship, 20(1), 10–33.
  14. Teodorescu, C. D. (2015). The internal control models in Romania. Annals of the Constantin Brâncuşi University of Târgu Jiu, Economy Series, Special Issue/2015 – Information society and sustainable development.
  15. Tisu, L., Lupșa, D., Vîrgă, D., & Rusu, A. (2020). Personality characteristics, job performance and mental health: The mediating role of work engagement. Personality and Individual Differences, 153, 1–6.
  16. Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, 37(4), 1019–1042.