Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 31 4 2024 12 21 The Relationship between Post-materialism, Public Interest Protection, Independence, and the Alignment of Auditor and Client Interests The Relationship between Post-materialism, Public Interest Protection, Independence, and the Alignment of Auditor and Client Interests 635 667 99887 10.22059/acctgrev.2024.378049.1008973 FA Bahman Banimahd Prof., Department of Accounting, Faculty of Accounting and Management, Karaj Branch, Islamic Azad University, Alborz, Iran. Reza Bagherzadegan Ph.D. Candidate, Department of Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran. Journal Article 2024 06 14 <strong>Objective</strong> The growth of companies has introduced regulatory and oversight challenges, primarily due to the lack of continuous supervision by shareholders within these organizations. Although auditors’ responsibilities are defined, their thought patterns may not always align with the public interest. They sometimes pursue personal objectives instead, resulting in a phenomenon called the alignment of auditor and client interests. Given the limited research on thought patterns and competition in the Iranian audit market, this study explores the significance of independence and public interest protection in combating financial fraud and ensuring financial health in reports. Additionally, it examines how the absence of international auditing firms may heighten the alignment of interests between clients and auditors, focusing on the role of post-materialism in these dynamics. <strong>Methods</strong> This research employs a descriptive and correlational design to analyze the relationships between various variables. The statistical population for distributing the questionnaires in this study includes auditors working in private audit firms and the Iran Auditing Organization. Data on auditor-client interest alignment, public interest protection, and independence were collected using the Barrainkua & Espinosa-Pike (2017) questionnaire, while auditor post-materialism was assessed through the Giacalone & Jurkiewicz (2004) questionnaire. A total of 309 completed questionnaires were collected in 2022, and structural equation modeling was deployed for data analysis.     <strong>Results</strong> Results indicated a positive relationship between post-materialism and independence. The relationship between post-materialism and public interest protection was also found positive. Conversely, there was a negative relationship between post-materialism and the alignment of auditor and client interests. Moreover, no relationship was found between public interest protection and the alignment of auditor and client interests. A negative relationship was observed between independence and the alignment of auditor-client interests. <strong>Conclusion</strong> The findings suggest that post-materialism influences individual behavior, leading post-materialist or transcendental auditors to avoid unethical actions and personal gain. Given that the auditing profession aims to protect the interests of third parties relying on the auditor's opinion, auditors with strong post-materialist views tend to prioritize non-materialistic goals, leading to a decreased alignment with client interests. Thus, they are less inclined toward unethical practices and personal interests, actively working to protect the public interest. These auditors believe that unethical actions undermine their independence, which is a core and indispensable attribute of auditors in providing assurance services, including the auditing of financial statements. In other words, auditors must avoid any dependence on the client to render an impartial and unbiased opinion on financial statements. <strong>Objective</strong> The growth of companies has introduced regulatory and oversight challenges, primarily due to the lack of continuous supervision by shareholders within these organizations. Although auditors’ responsibilities are defined, their thought patterns may not always align with the public interest. They sometimes pursue personal objectives instead, resulting in a phenomenon called the alignment of auditor and client interests. Given the limited research on thought patterns and competition in the Iranian audit market, this study explores the significance of independence and public interest protection in combating financial fraud and ensuring financial health in reports. Additionally, it examines how the absence of international auditing firms may heighten the alignment of interests between clients and auditors, focusing on the role of post-materialism in these dynamics. <strong>Methods</strong> This research employs a descriptive and correlational design to analyze the relationships between various variables. The statistical population for distributing the questionnaires in this study includes auditors working in private audit firms and the Iran Auditing Organization. Data on auditor-client interest alignment, public interest protection, and independence were collected using the Barrainkua & Espinosa-Pike (2017) questionnaire, while auditor post-materialism was assessed through the Giacalone & Jurkiewicz (2004) questionnaire. A total of 309 completed questionnaires were collected in 2022, and structural equation modeling was deployed for data analysis.     <strong>Results</strong> Results indicated a positive relationship between post-materialism and independence. The relationship between post-materialism and public interest protection was also found positive. Conversely, there was a negative relationship between post-materialism and the alignment of auditor and client interests. Moreover, no relationship was found between public interest protection and the alignment of auditor and client interests. A negative relationship was observed between independence and the alignment of auditor-client interests. <strong>Conclusion</strong> The findings suggest that post-materialism influences individual behavior, leading post-materialist or transcendental auditors to avoid unethical actions and personal gain. Given that the auditing profession aims to protect the interests of third parties relying on the auditor's opinion, auditors with strong post-materialist views tend to prioritize non-materialistic goals, leading to a decreased alignment with client interests. Thus, they are less inclined toward unethical practices and personal interests, actively working to protect the public interest. These auditors believe that unethical actions undermine their independence, which is a core and indispensable attribute of auditors in providing assurance services, including the auditing of financial statements. In other words, auditors must avoid any dependence on the client to render an impartial and unbiased opinion on financial statements. https://acctgrev.ut.ac.ir/article_99887_fa8dcb99c7ed030d48e0611a810c4243.pdf