Investigating the Relationship between the Dimensions of Organizational Culture and the Size of Audit Firms with Auditors’ Judgment and Decision Making

Abstract

Professional judgment and decision-making are a vital part of all audit processes and the cornerstone of the audit profession; Therefore, it is essential to identify the factors affecting auditors’ judgment and learn new skills to improve the level of professional judgment and decision-making. Previous researches at the level of culture in societies show that the development and evolution of accounting in each society depends on the environmental, cultural, and social factors of that society. Therefore, the purpose of this research is to investigate the relationship between cultural dimensions from the aspects of masculinity, collectivism, uncertainty avoidance, and the power distance and the size of audit firms with auditors' judgment and decision-making. This research is applied research in terms of purpose and descriptive-analytical in terms of nature. The data collection tool is a questionnaire and the statistical population of the research is the members of the Iranian Association of Certified Public Accountants in 1400 and 1401. Research samples were chosen by random sampling method of 132 questionnaires. Confirmation of relationships between variables and factors has been done through confirmatory factor analysis and path analysis. Smart PLS statistical software was used to test the hypotheses. The results show that power distance and masculinity have a negative relationship, collectivism has a positive relationship with auditors' judgment and decision-making, and the uncertainty avoidance aspect has no significant relationship with auditors' judgment and decision-making. Also, the moderating role of the audit firm's size in the investigated relationships was not confirmed

Keywords

• judgment
• auditors&rsquo
• decision making
• dimensions of organizational culture
• audit firm size
• audit quality