Qualitative modeling of factors affecting auditor’s judgment and decision-making

Purpose - The purpose of this paper is to provide a qualitative model in the field of factors affecting auditors’ judgment and decision-making. The current research follows a descriptive survey method. Design/methodology/approach - A survey method was used to conduct this research, with a questionnaire as the primary tool. The statistical population consists of auditors with extensive knowledge and opinions on the research problem and its theoretical foundations. A sample of eight auditors was selected using the snowball sampling method. Findings - The research results indicated that factors influencing auditors’ judgment and decision-making include reviewing audit reports from past periods, the knowledge and expertise of audit partners, input from the audit team, understanding social, cultural, political and economic environmental issues, auditor independence, technical and specialized skills of auditors, increasing experience, knowledge of business owners’ activities, rising audit fees and inhibiting forces in auditors’ judgment and decision-making. These inhibiting forces include lack of client knowledge, emotions, mental states, ethical considerations, business unit ownership structure, complexity of reviewed unit activities, state-owned business unit ownership, lack of understanding of employer activities and lack of expertise in the employer’s industry. Practical implications - The model presented in this research aids in enhancing and refining the judgment and decision-making of independent auditors, resulting in more favorable financial reports for report users. Additionally, the theory developed through this research method can lead to the formulation of hypotheses that future researchers can test. Originality/value - Auditor judgment is a vital aspect of independent audits, emphasized in auditing standards and professional codes of conduct.