The Pattern Restricting Monopolism and Negative Machiavellian Property of Auditors with emphasis on Critical Theory

Purpose: This study strives to assess the underlying and effective factors of monopolism and Machiavellian biases in audit and present some strategies for them to improve auditors' judgment quality in the light of accounting critical theory using grounded theory.
Method: Since Machiavellian traits and monopolism in audit tend to have the desire for elitism, the statistical society of this study comprises professional academic accounting professors, stakeholders of audit institutes, and top managers of audit organizations. This research has been implemented during 2021 and 2022 using composite purposive sampling, and 12 in-depth and semi-structured interviews until reaching theoretical saturation. Moreover, structural equation modeling (SEM) and PLS software have been used to examine the validity of the conceptual model of study.
Results: Results showed that cultural, environmental, and social factors had an impact (0.276) on audit monopolism and also had an effect (0.463) on the Machiavellian biases of auditors. Structural and technical agents had 0.485 and 0.358 impact factors on monopolism and Machiavellian biases, respectively. Moreover, political governance in the audit profession influences (0.654) monopolism in the audit profession because regulatory bodies are close to the government. In addition, restrictive, legal, and regulatory factors have an impact factor of 0.368 on monopolism in the audit profession, and this component influence (0.597) the Machiavellian biases. Also, creating a foundation for increasing audit quality is one of the consequences of Restricting Monopolism in auditing and Machiavellian Property of auditors.
Conclusion: Restricting of Machiavellian characteristics and Monopolism in auditing can be achieved through strengthening the knowledge and skills of human resources, structural and technical reforms, economic improvement and political communication, determination in the implementation of laws and continuous monitoring of auditors' performance, and improves the quality of auditing services and Intellectual and practical maturity of auditors.
Contribution:The novelty aspect of this study is mixing qualitative analysis and empirical experiments to identify factors affecting monopolism in audit and creating Machiavellian biases in Iran. To match with sorted viewpoints of audit professionals, some strategies are proposed to restrict these two phenomena influencing the quality of audits.

Keywords

Main Subjects

Auditing

References

Arosalo, U., and Vayrynen, R. (2016). Financial and Industrial Oligarchy: Present Structure and Some Trends, Journal of Peace Research, 10(1-2):1-35.‏

Baum, Christopher F., Mustafa Caglayan, Dorothea Schafer, and Oleksandr Talavera .(2008). “Political patronage in Ukrainian banking”. Economics of Transition, 16(3):537–557.

Beygpanah, B., Asnaashari, H., Hoshi, A., and Assadi, G. H. (2022). Accountability of Audit Firms: Content Analysis Method. Accounting and Auditing Review,29(2): 213-241.(in persian).

Brown, T., D. Hatherly, and J. Innes. (2016) The review report: An empirical investigation, Accounting and Business Research, 24 (93):11–18.

Castka.P. Searcy.C. and Mohr.J. (2020). Technology-enhanced auditing: Improving veracity and timeliness in social and environmental audits of supply chains, Journal of Cleaner Production, 258(5):152-170.

Dayanti Dilmi, Z., and Rezapour Parvash, R. (2013). The relationship between corporate ethics, social responsibility and Machiavellianism with tax evasion, Quarterly Journal of Ethics in Science and Technology, 9(4):1-12.

Deagan, C. (2017). Twenty five years of social and environmental accounting research within Critical Perspectives of Accounting: Hits, misses and ways forward, Critical Perspectives on Accounting, 43(1):65-87.

Eimer, F., and Garkaz, M. (2018). Investigating the Relationship between the Dark Triad of Personality and Opportunistic Decision making of Financial managers in Accounting. Journal of Accounting Advances, 10(1): 273-303. (in persian).

Forghndost, K., Banimahd, B., & Valilor, H. (2014). Comparative Analysis of Machiavellianism Accountants - Hsabrsan- doctors and engineers. Financial Accounting and Auditing Research,6(23), 41-54. (in persian).

‏Garcia, G. (2022). Colombian financial oligarchy, (Doctoral dissertation, Durham University).‏

Gaffikin, M., Mohtadi, A., and Asghari, I. (2015). A Review Of Critical Accounting Theories, Journal of Accounting and Social Interests, 5(2),59-78.(in persian).

Gorodnichenko,Y., and Grygorenko,Y.(2008). Are oligarchs productive? Theory and evidence, Journal of Comparative Economics,36,)1(:17-42.

Hamilton, E., and Smith,J. (2021). Error or Fraud? The Effect of Omissions on Management’s Fraud Strategies and Auditors’ Evaluations of Identified Misstatements, The Accounting Review, 96(1): 225–249.

Heydari, G., Nikoomaram, H., and Vakilifard,, H. (2023). The Relationship between the Characteristics of Dark Personality Traits and the Willingness to Fraudulent Behaviors: Testing of Social Trust Theory. Financial Accounting Knowledge, 10(1):183-221 .(in persian).

Heyrani F, Vakilifard H, Banimahd B, and Rahnamayeh Roudposhti F.(2017) The effect of professionalism, antisocial and overconfidence on their judgments to resolve the conflict between the auditor and management. Quarterly Financial Accounting, 8 (32):106-143. (in persian).

Karimpour amshelly, S., Banimahd, B., Khalilpour, M., and Ramazani farid, J. (2020). The Effects of Machiavellianism, Affect and Information processing Styles on Fraudulent Financial Reporting. Applied Research in Financial Reporting, 9(1):223-256.(in persian).

Kronenberger, S., and Laux, V.(2020). Conservative Accounting, Audit Quality and Litigation. ssrn.com/sol3/papers .cfm? Abstract_ id=2818038, 14(1):42-61.

Jamal, K., and Sunder, SH. (2014). Monopoly versus Competition in Setting Accounting Standards, A journal of accounting, Finance and business Studies, 14:45-69.

Laughlin, R. (1999) , “Critical Accounting: Nature, Progress and Prognosis”, Accounting, Auditing and Accountability Journal, 12(1):73–78.

Linklater, A. (2010). Neorealism, critical theory and school of reconstruction, Ministry of Foreign Affairs Printing and Publishing Center, 8th edition. (in persian).

Mansouri nalbandan, M., and hashemi gohar, M.(2021). Investigating the Relationship between Organizational Culture in Auditing Institutions and Professional Judgment with Emphasis on Machiavellianism, https://ssrn. com =3856811. 14(1):16-29.

Maranjoori, M., Khalkhali, M., Alikhani, R., and Taghipour Ghilani, Y. (2022). The Effect of Machiavellianism on Auditors' Attitudes toward Marketing Activities with the Mediating Role of Ethical Orientation. Applied Research in Financial ohn,

(19)1:35-60.

McEnroe, E., Pitman., M. (2003). An Analysis of the accounting profession’S oligarchy: the auditing standards boards, Research in Accounting Regulation, 16(2): 29-34.

Moini A.(2014). New Critical Theory: Beyond Postmodernism and Post-Critical Thought, Theoretical Research Journal, 6(4): 1-10. (in persian).

Patnaik, P. (2019). The ideology of India’s corporate-financial oligarchy-A note. Studies in People’s History, Sage Journal, 6(2):193-201.

Patton MQ. (2002). Qualitative research and evaluation methods. 3rd ed. Thousand Oaks, Sage journal, 3(1):95-115.

Power, M., Laughlin, R., and Cooper, DJ (2003). Accounting and critical theory. Critical Study of Management,14(2):132-156.

Pranyanita,I., and Sujana,I. (2019). Pengaruh Sifat Machiavellian, Time Budget Pressure, Loc Pada Dysfunctional, Audit Behavior, Akuntan Publik Di Bali, E-Jurnal Akuntansi Universitas Udayana. 26(2):12-39.

Royaei, Ramzan Ali, Mohammadi, Mehdi (2014). Ethics and professionalism in accounting, Farhang Library Publications, Third edition. (in persian).

Sunder., SH. (2014). IFRS monopoly: the pied piper of financial reporting,
Accounting and Business Research, 41:293-306.

Sahla,W., and Iryanie, E, .(2018). Perceoation of locuse of contorol, level of eduction, machiavellanism and ethical reasoning against auditor behavior in audit confilict sttuations. akrual: Jurnal Akuntansi,10 (1):15-26.

Saputri,I., and Wirama,D. (2015). Pengaruh sift machiavellian dan tipe kepribadian pada perilaku disfungsional auditor, E-Jurnal Akuntansi, 4(2):70-86,.

Samimi, S., Badavar Nahandi, Y., and mottaghi, A. (2022). A Comprehensive Model of Factors Affecting the Expectation Gap between Auditors and Users of Financial Statements: A Multidimensional Grounded Theory and Structural Equation Modeling. Journal of Accounting and Social Interests, 12(1): 41-60.(in persian).

Sayal,K., and Singh,G. .(2022). Investigating the role of theory of planned behavior and Machiavellianism in earnings management intentions. Accounting Research Journal, 33(6):653-668.

Sikka, P., and H, Wilmott.(1997). "Practising Critical Accounting", Critical Perspectives on Accounting, 8(1):149-165.

Strauss, A.L and Corbin,S. (1998). Qualitative anatvsis for social scientists. New York: Cambridge University Press.14(2):165-191.

Teddlie C, Yu F.(2007). Mixed methods sampling a typology with examples. Journal of Mixed Methods Research, 1(1):77-100.

Turkmeh, Aydin, Hafeznia, Mohammadreza, Romina, Ebrahim, Ahmadipour, Zahra. (1401). Critical geopolitical analysis from the perspective of critical realism, International Quarterly of Geopolitics, 18(65):1-43. (in persian).

Vizandra, E. and Sudaryati, E. (2022). The Effect of Machiavellianism on Ethical Perception of Tax Evasion with Gender as Moderating Variable, Akuntabilitas, 16(1): 1-22.‏

Wijayanti,R. (2018). Studi Determinan Perilaku Etis Mahasiswa Akuntansi. Jurnal Economi Modernisasi, 14(3):130-165.

Winter, Y.(2022). A Government of Creditors: Machiavelli on Genoa, the Bank of San Giorgio, and the Financial Oligarchy, 54 (4):207-230.

Article View: 479
PDF Download: 588

The Pattern Restricting Monopolism and Negative Machiavellian Property of Auditors with emphasis on Critical Theory

References

References

Volume 10, Issue 2 - Serial Number 37June 2023Pages 185-215

Volume 10, Issue 2 - Serial Number 37
June 2023
Pages 185-215