The Role of Accounting Standards Setting Approaches on the Psychological Characteristics of Auditors
Accounting standards are the principal factors in business environment affecting different areas, including accounting profession and auditors. In this study, the role of approaches to accounting standards setting (rule-based and principle-based standards) in the psychological characteristics of aud...
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| Autores principales: | , |
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| Formato: | article |
| Lenguaje: | FA |
| Publicado: |
Shahid Bahonar University of Kerman
2018
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| Materias: | |
| Acceso en línea: | https://doaj.org/article/c26d16e0657e4537bd7a65e1256bbfac |
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| Sumario: | Accounting standards are the principal factors in business environment affecting different areas, including accounting profession and auditors. In this study, the role of approaches to accounting standards setting (rule-based and principle-based standards) in the psychological characteristics of auditors has been investigated, using structural equation modeling, The data collection takes into account an accounting pseudo-experimental scenario that are accounting standards manipulation at two levels, rule-based and principle-based.
The results showed that principle-based standards, compared to the rule-based standards, lead to higher levels of epistemic motivation and process accountability for auditors. Also, the results indicated that types of accounting standards have no significant effects on the evidence level requested by auditors, but, the principle-based standards increase the level of evidence indirectly through mediation of process accountability. Another findings showed that the process accountability directly affects the level of evidence requested by auditors. But, the results indicated that epistemic motivation has no significant effect on the request of level of evidence. In general, findings represented positive impacts of principle-based accounting standards on the process accountability and epistemic motivation for auditors. These confirm that principle-based approach should be considered more by standard-setters and policy makers in the fields of accounting and auditing. |
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