Assessing the Relationship Between Auditor Well-Being and Audit Quality: Insights from the North American Auditing Context

Abstract

This research examines the relationship between auditors' psychological well-being and the quality of audits they conduct, a subject that has received limited attention in scholarly discourse. Traditional studies in the field have primarily centred on auditors' professional skills, ethical standards, and the pressures inherent in their roles, often overlooking the potential influence of their mental health on audit outcomes. By conducting an empirical investigation among auditors in North America, this study finds a significant and positive link between the well-being of auditors and the quality of their audit work, thereby underscoring the critical role of psychological health in the auditing profession. The findings of this research underscore the necessity for auditing firms to adopt and enhance mental health and well-being programs as part of their strategic initiatives to improve audit quality. By integrating well-being into the organizational culture and operational practices, firms can not only elevate the quality of audit outputs but also contribute to a healthier, more productive, and ethically sound professional environment. This study broadens the scope of audit quality research by integrating psychological well-being into the array of factors that influence audit outcomes, offering a new perspective on achieving excellence in auditing practices. The implications of this research extend beyond the immediate auditing community, suggesting a revaluation of professional well-being in similar high-stakes, high-pressure fields.

Keywords

• audit quality
• auditor well-being
• cultural nuances
• north american auditing
• organizational culture
• psychological well-being