The Impact of Professional Ethics, Social Structure, and Religious Attitude on Auditors’ Judgments: A Comparison of the Environments in India and Iran

Iranian Journal of Accounting, Auditing and Finance

دوره 8، شماره 4 - شماره پیاپی 29، اسفند 2024، صفحه 51-69   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2024.45130.1425

نویسندگان

Mahdi Filsaraei^* ؛ Mohammad Sadegh Sadeghi

Department of Accounting, Hakim Toos Higher Education Institute, Mashhad, Iran

چکیده

This paper proposes a hybrid approach that integrates fuzzy multi-criteria decision-making with multi-objective mathematical optimization to address the investment management problem in the Iranian capital market under interval uncertainty. To achieve this, we first employ the fuzzy SWARA method to assess the global importance of the criteria weights. Subsequently, we develop a fuzzy EDAS method to rank the active industries in the Iranian capital market, including basic metals, chemical products, investment services, metal ore mining, financing, insurance, pension funds, and social security. Next, we present a mathematical model to determine the optimal investment amount for each ranked alternative. According to the numerical results, the most critical criteria for evaluating different investment areas are access to financial resources, distribution networks, and raw materials. The highest optimal share of investment is associated with Fars 1, while the lowest value pertains to Gharn 1. When solving the model under conditions of uncertainty, we observe that increasing parameter  from small to large values decreases the value of the first objective function for the most efficient Pareto member. However, when exceeds 10, the value of the first objective function stabilizes. Additionally, the third objective function shows an increasing trend as the parameter  decreases. The results obtained can serve as a managerial tool for stakeholders involved in research participation.

کلیدواژه‌ها

Auditors' Judgments؛ Professional Ethics؛ Religious Attitude؛ Social Structure

مراجع

1. Adeel, N., Patel, C., Martinov-Bennie, N., and Ying, S. X. (2022). Islamic religiosity and auditors’ judgments: Evidence from Pakistan. Journal of Business Ethics, 179(2), pp. 551-572. https://link.springer.com/article/10.1007/s10551-021-04829-w.
2. Alizadegan, L., SamadiLargani, M., and Imeni, M. (2022). The Effect of Personality Type and Professional ethics on Auditors' Ability to Detect Fraud Using the Theory of Planned Behavior by the role of Professional Skepticism. Financial Accounting and Auditing Research, 14(54), pp. 49-78. (In Persian). 10.30495/faar.2023.699788.
3. Aras, G. and Muslumov, A. (2001). The analysis of factors affecting ethical judgments: The Turkish evidence, Department of Business Administration, 1(1), pp. 1-12. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=890075.
4. Bahari Sejahrood, M. A., Khozain, A., Gorganli Doji, J., and Naderian, A. (2023). Provide a model of auditors' professional ethics behaviour with emphasis on ethical climate using interpretive structural modelling from the professional experts’ perspective. International Journal of Nonlinear Analysis and Applications, 14(1), pp. 1509-1523. (In Persian). 10.22075/IJNAA.2022.26804.3414
5. Barrier, M. (2003). One right path: Cynthia Cooper: MCI vice president of internal audit Cynthia Cooper believes that where ethics are concerned, you have to obey your conscience and accept the consequences. Internal Auditor, 6(6), pp. 52-57.
6. Craft, J. (2013). A review of the empirical ethical decision-making-literature: 2004-2011. Journal of Business Ethics, 117(2), pp. 221-259. https://link.springer.com/article/10.1007/s10551-012-15189
7. Etzioni, O. (1989). Tractable Decision-Analytic Control. KR, 89, 114-125.
8. Flanagan, J. and Clarke, K. (2007). Beyond a code of professional ethics: A holistic model of ethical decision‐making for accountants. Abacus, 43(4), 488-518.
9. Heirani, F., Vakili Fard, H.R., Bani Mahd, B. and Rahnama Rudpashti, F. (2018). The influence of social characteristics of auditors on their judgment in resolving conflict between the auditor and the management of selected characteristics: Overconfidence and Machiavellian personality, Audit knowledge, 17(67), pp. 71-98. (In Persian). http://danesh.dmk.ir/article-1572-1-fa.html
10. Jones, T. (1991). Ethical decision making by individuals in organizations: An issue-contingent model. Academy of Management Review, 16(2), pp. 231-248. https://doi.org/10.5465/amr.1991.4278958
11. Kargarkamvar, N., Khanmohammadi, M. H., yazdani, S., and Moradi, Z. (2020). Investigating the Effect Of Orientation Of Religion On Financial Decision Makers' Ethical Approaches, Journal of Investment Knowledge, 9(34), pp. 127-147. (In Persian).http://www.jik-ifea.ir/article_16202_en.html
12. Khodayari Fard, Mohammad, Mansouri, Ahmad, Basharat, Mohammad Ali, ... and Massoud. (2017). Religiously and spiritually integrated treatments and generalized anxiety disorder. Journal of Research in Behavioural Sciences, 15(1), pp. 126-134.
13. Matson, J. L., Carlisle, C. B. and Bamburg, J. W. (1998). The convergent validity of the Matson evaluation of social skills for individuals with severe retardation (MESSIER). Research in Developmental Disabilities, 19(6), pp. 493-500. https://doi.org/10.1016/S0891-4222(98)00020-1
14. Onumah, R. M., Simpson, S. N. Y., and Kwarteng, A. (2022). The effects of personal and organizational attributes on ethical attitudes of professional accountants: evidence from Ghana. Journal of Global Responsibility, 13(3), pp. 245-267. https://doi.org/10.1108/JGR-04-2021-0041
15. Rest, J. R. (1986). Moral development: Advances in research and theory. New York:Praeger
16. Salehi Kamamardakhi, S. S., Azadi, K., and Vatanparast, M. (2023). The Impact of Organizational Ethics and Culture on the Auditor's Professional Judgment with respect to Corporate Social Responsibility Using Structural Equation Modeling. International Journal of Finance & Managerial Accounting, 8(30), pp. 259-274. (In Persian).
10.30495/IJFMA.2022.64510.1761
17. Sarlak, N. (2007) Accounting Ethics, Ethics in Science and Technology, 3(1,2), pp. 35-62. (In Persian). https://ethicsjournal.ir/search.php?slc_lang=fa&sid=1
18. Scott Asay, H., Brown, T., Nelson, M. W. and Jeffrey Wilks, T. (2017). The effects of out‐of‐ regime guidance on auditor judgments about appropriate application of accounting standards. Contemporary Accounting Research, 34(2), pp. 1026-1047.
19. Sweeney, B. and Costello, F. (2015). (2009). Moral Intensity and Ethical Decision-making: An Empirical Examination of Undergraduate Accounting and Business Students. In Accounting Education Research (pp. 443-465). Routledge.
20. Zairi, M., and Peters, J. (2012). The impact of social responsibility on business performance, Managerial auditing Journal, 17(4), pp. 422-456. https://doi.org/10.1108/02686900210424312