Auditors' Sensory Processing Capability and Objectivity: Are Auditors Really Objective?

Document Type : Research Paper

Authors

1 Department of Accounting, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

2 Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

3 Faculty of Education and Psychology, Ferdowsi University of Mashhad, Mashhad, Iran

Abstract

This paper investigates the effect of auditors' sensory processing on their objectivity. It is a descriptive survey, and the research population consists of independent auditors at different professional levels (the sample size is 115 auditors who work at audit organizations and IACPA audits). The required data was collected, in the year 2022, by standard questionnaires provided in the literature and analyzed by applying Structural Equation Modeling(SEM) method using “R” software. The results showed that auditors' sensory processing affects their objectivity. Therefore, it can be argued that auditors are not objective in all situations, implying that the audit quality may be impaired in specific conditions. This finding indicates that the auditors’ objectivity could be affected by different personal traits leading to increased audit risk, which may negatively affect audit firms and audit professional reputations. The paper represents a start into the territory of the minds of auditors by investigating the effect of auditors' reactions to environmental stimuli on their objectivity. The results showed the significant effects of sensory processing capabilities on objectivity, leading to more developments in audit behavioral research. The findings may have some implications for regulators, standard setters and audit firms for providing insights to improve professional objectivity.

Keywords

Main Subjects

References

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 18, Issue 1
January 2025
Pages 129-143

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