The Joint Effects of Social Identity and Institutional Pressures on Audit Quality

Document Type : Original Article

Authors
taher ebrahimzadeh 1
Nowrouz Nourollahzadeh 2
Negar Khosravi pour 3
1 Phd Student in accounting, International Kish Branch, Islamic Azad University< Kish Island, Iran
2 accounting-Faculty of Economics and Accounting-Islamic Azad University, South Tehran Branch
3 Assistant Professor of Economics and Accounting Faculty, south Tehran Branch, Islamic Azad University, Tehran, Iran
Abstract
The purpose of this study is to examine the joint effects of social identity and institutional pressures on audit quality. The statistical population of this study included (auditors of Iranian audit firm’s colleague with foreign firms And auditors of trusted audit firms- Grade A - of the Stock Exchange) and (auditors of non- colleague audit firms with foreign agencies and auditors of other auditing firm’s member of the Iranian Society of Certified Accountants in 2019. The research is applied in terms of purpose and it is descriptive and qualitative in terms of data collection. The research data were obtained through the study of theoretical foundations and a researcher-made questionnaire with a sample size of 309 (using Cochran formula) by cluster random sampling. A 70-item questionnaire with high content validity, structure and reliability was used to obtain the research data. Conceptual model analysis and testing of research hypotheses were performed using AMOS, PLS and SPSS structural equation modeling software. Hypotheses test results showed that Mimetic and normative pressures had a positive effect (with varying intensity depending on the identity group) on both audit groups, and Coercive pressures had a negative effect (with different intensity) on both groups. These results suggest that audit firms' efforts to perform activities that are appropriate to their Social base and Gain legitimacy, causes auditors to respond to these pressures in accordance with their social identities, which may affect their audit quality
Keywords
Institutional Pressures
Social Identity
Legitimacy
Audit Quality
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