The Impact of Genuine Leadership Dimensions on Auditors' Ineffective Behaviors Through Ethical Culture in Audit Institutions

Subject Areas : مدیریت

Fareshte FeyzAbadi ¹ (Assistant Professor, Department of Accounting, Campus Branch, Islamic Azad University, Campus, Iran (Correspondent))
Hbibalallah Dehqan ² (Instructor, Department of Accounting, Mallard Branch, Islamic Azad University, Tehran, Iran)

Received: 2020-12-07 Accepted : 2020-12-07 Published : 2020-11-21

Keywords: authentic leadership, ethical culture, dysfunctional behaviors of auditors,

Abstract :

Many have blamed independent auditors for their immoral behavior. But much research has been done on the factors that influence these behaviors. One of the effective factors is the leadership style of audit firms. This study investigates the impact of genuine leadership dimensions on auditors' culture and behavior and its data collection tool was a questionnaire. The statistical population of this study consists of senior auditors in auditing institutes member of Iranian Society of Certified Public Accountants. To analyze the conceptual model and research hypotheses, structural equation analysis with least squares approach and PLS software was performed.Findings from the research findings show that not only genuine leadership dimensions (relationship transparency, institutionalized ethics, comprehensive information analysis and self-awareness) and ethical culture influence audit dysfunctional behaviors, but also genuine leadership dimensions indirectly through the institution's ethical culture. Influences audit dysfunctional behaviors. Therefore, the present study indicates that the leadership style and characteristics of managers and the culture of the firm influence the performance of audit ineffective behaviors. As a result, it is recommended that authorities pay more attention to corporate ethics and ethics in order to reduce and control ineffective audit behaviors.