The Role of Auditor's Psychological Empowerment in Observance of the Code of Professional Conduct: An Emphasis on Moderating Role of Organizational Status and Job Experience

Document Type : Research Paper

Authors

1 assistant professor in accounting- shahid beheshti university

2 MSc. in Accounting, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

3 MSc. In Accounting, Faculty of Economic and Management, Shiraz University, Shiraz, Iran

Abstract

The process of capital allocation is based on the information provided through financial reporting. In this context, auditing is regarded as a tool for improving the quality of financial statements. Hence, professional ethics and codes are necessary for auditors so they can perform their duties in a regular manner. Accordingly, this study aims to examine the role of auditors' psychological empowerment on observance of the code of professional ethics with emphasis on the moderating role of organizational status and job experience. Research data is gathered thorough 288 online questionnaires which are distributed to those auditors that work for audit institutions of Iranian association of certificate public accountants. The results suggest that psychological empowerment in the workplace can have a significant impact on the observance of code of professional conduct. Also, job experience could have act as a moderating variable on the relationship between psychological empowerment and observance of code of professional conduct.

Keywords

References

Aghajani, H., Samadi Miarkolaei, H. & Samadi Miarkolaei, H. (2013). Organizational Citizenship Behavior’s Relationship and Staffs' Psychological Empowerment. Journal of Public Administration, 5 (2), 1-18.(in Persian)
Ashforth, B.E. (1989). The experience of powerlessness in organization. Organizational Behavior and Human Decision Processes, 43 (2), 207-242.
Clements, C. E., Neill, J. D., & Stovall, O. S. (2012). Inherent Conflicts of Interest in The Accounting Profession. Journal of Applied Business Research, 28 (2), 269.
Gautam, D. K., & Bhandari Ghimire, S. (2017). Psychological empowerment of employees for competitive advantages: An empirical study of Nepalese service sector. International Journal of Law and Management, 59(4), 466-488.
Ghani, N. A. A., Hussin, T. A. B. S. B., & Jusoff, K. (2009). Antecedents of psychological empowerment in the Malaysian private higher education institutions. International Education Studies, 2(3), 161-165.
Hamid, S. F., Nordin, N., Adnan, A. A., & Sirun, N. (2013). A Study on Primary School Teachers Organizational Commitment and Psychological Empowerment in the District of Klang. Procedia-Social and Behavioral Sciences, 90, 782-787.
Hasas Yeghaneh, Y. & Maghsodi, O. (2011). Moral values in the auditor's professional judgment. Journal of Ethics in Science and Technology, 6 (1), 62-73.(in Persian)
Huang, J. (2017). The relationship between employee psychological empowerment and proactive behavior: Self-efficacy as mediator. Social Behavior and Personality: an international journal, 45(7), 1157-1166.
Humborstad, S. I. W., & Dysvik, A. (2016). Organizational tenure and mastery-avoidance goals: the moderating role of psychological empowerment. The International Journal of Human Resource Management, 27(12), 1237-1251.
Kung, F. H., & Li Huang, C. (2013). Auditors' moral philosophies and ethical beliefs. Management Decision, 51(3), 479-500.
Lee, H., Jeon, S., & Zeelim-Hovav, A. (2016). Impact of Psychological Empowerment, position and Awareness of Audit on Information Security Policy Compliance Intention. Pacific Asia Conference on Information Systems (PACIS), 62-73.
Lehmann, C. M., & Norman, C. S. (2006). The effects of experience on complex problem representation and judgment in auditing: An experimental investigation. Behavioral Research in Accounting, 18(1), 65-83.
Maynard, M. T., Luciano, M. M., D’Innocenzo, L., Mathieu, J. E., & Dean, M. D. (2014). Modeling time-lagged reciprocal psychological empowerment–performance relationships. Journal of Applied Psychology, 99(6), 1244-1253.
Molanazari, M. & Esmaili Kia, Gh. (2015). Psychological characteristics contributing to expertise in audit judgment. Journal of Accounting and Auditing Review, 21 (4), 505-526.(in Persian)
 Moulang, C. (2015). Performance measurement system use in generating psychological empowerment and individual creativity. Accounting & Finance, 55(2), 519-544.
Nikbakht, M. & Mahmoudi Khoshroo, O. (2017). Investigating the Factors Affecting the Quality of Auditing in Iran Based on the Indicators of the Accounting Supervisory Board (PCAOB) of the Public Joint Stock Companies. Journal of Accounting and Auditing Review, 24 (3), 441-462.
 (in Persian)
Oghbaei, S. (2016). Various aspects of code of professional conduct Canada, Egypt, Japan and Iran. Quarterly of certificate of accounting, 33, 39-44.(in Persian)
Rafiee, A., Hamidi, E., & Makarem, N. (2014). Principel of Auditing (1th ed), Tehran: Audit Organization Press.(in Persian)
Ratmawati, D. (2007). Managerial competency and management commitment to employee empowerment: banking companies case. In Proceedings of the 13th Asia Pacific management conference, 556-562.
Salajeghe, S., Pour Rashidi, R., & Mousaei, M. (2014). Analysis of Employees Psychological Empowerment and Its Relationship with Knowledge Managemen. Management Studies in Development and Evolution, 22 (72), 99-118. (in Persian)
Sayrani, M.; Khajavi, Sh.; & Noshadi, M. (2008). An Examination of the Effects of Experience and Task Complexity on Audit Judgments.Journal of Accounting and Auditing Review, 16 (2), 505-526.(in Persian)
Setayesh, M., Kazem Nejad, M., Rezaei, Gh.R. & Dehghani, A.A. (2016). The Usefulness of Feature Selection in Auditors Opinion Type Prediction. Journal of Accounting and Auditing Review, 23(3), 373-392. (in Persian)
Spreitzer, G. M. (2008). Taking stock: A review of more than twenty years of research on empowerment at work. Handbook of organizational behavior, 2, 54-72.
Spreitzer, G. M., & Mishra, A. (1997). Survivor responses to downsizing: the mitigating effects of trust and empowerment. Southern California Studies Center, University of Southern California. ‏
Thomas, K. W., & Velthouse, B. A. (1990). Cognitive elements of empowerment: An “interpretive” model of intrinsic task motivation, Academy of management review, 15(4), 666-681.
Ugwu, F. O., Onyishi, I. E., & Rodríguez-Sánchez, A. M. (2014). Linking organizational trust with employee engagement: The role of psychological empowerment. Personnel Review, 43(3), 377-400.
Whetten, D., & Cameron, K. S. (2011). Developing management skills. Prentice Hall/Pearson.
Wilson, J. H. (2014). Empowering Excellence: The Relationship of Employee Self-Leadership and Psychological Empowerment with Performance and Job Satisfaction (Doctoral dissertation, Regent University).
Accounting and Auditing Review
Volume 25, Issue 1
2018
Pages 71-90

Files

Share

How to cite

Statistics