Inequality perception in audit team and auditors' reckless behavior

The purpose of this study is to examine the association between auditors' reckless behavior and three team equality dimensions: deindividuation, social identity, and gender equality. The quality of services provided by auditors largely depends on the behavior of auditors while performing their duties. Accordingly, the conditions of ineffective audit behavior do not happen by themselves but are at least influenced by the conditions of an audit group in the work environment. Auditors must comply with the minimum standards and resort to the professional implementation of ethics to maintain the quality of the audit.

A questionnaire was used to collect research data. The research community includes auditors in institutions. Questionnaires were collected from among 102 audit groups including 365 auditors working in Iranian audit institutions in 2023. The research hypotheses were tested using the structural equation modeling (SEM).

The findings of the research indicate that de-individualization and gender inequality in an audit group are associated with an increase in the occurrence of auditors' reckless behaviors. Meanwhile, the reckless behavior of auditors is reduced by strengthening the social identity of the audit group. Also, the social identity of the audit group moderates the relationship between depersonalization and auditors' daring behavior.

According to the findings of this research, it is hoped that the auditing organization, the community of certified accountants, and auditing institutions, to increase the quality of auditing, by formulating a suitable strategy and carrying out the necessary planning, to increase the level of awareness about the importance of the audit group, its structure and size.

Contribution: 

This research can provide a new study platform regarding the suitable working environment for auditors in auditing institutions. In the sense that it draws the attention of audit institutions to establish a similar environment among employees.