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Explaining the Role of Moral Capital in Auditor Selection and Its Impact on Audit Quality
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Eisa Bakhtiari1   , Mostsfa Ghasemi2 , Abdul Reza Mohseni3 |
1- Ph. D Student, Department of Accounting, Bu.C., Islamic Azad University, Bushehr, Iran.
2- Department of Accounting, Bu.C., Islamic Azad University, Bushehr, Iran , m.ghasemi@iaubushehr.ac.ir
3- Department of Accounting, Bu.C., Islamic Azad University, Bushehr, Iran |
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Abstract: (22 Views) |
Background: Moral capital is regarded as a fundamental component of the auditing profession, influencing stakeholder trust and the credibility of financial reporting. Since the selection of an auditor can be shaped by the auditor’s ethical capacity, this study aims to explain the role of moral capital in auditor selection, examine its impact on audit quality, and develop a model for improving audit quality based on this approach.
Method: This research employed a sequential exploratory mixed-method design. In the qualitative phase, data were collected through semi-structured interviews with 27 senior auditors from firms licensed by the Iranian Association of Certified Public Accountants and university faculty members, selected using snowball sampling. The data were analyzed using Attride-Stirling’s thematic analysis. In the quantitative phase, a researcher-made questionnaire was distributed among 289 senior certified auditors through simple random sampling, of which 259 valid responses were analyzed. Data analysis was conducted using confirmatory factor analysis and structural equation modeling in SPSS 26 and AMOS 26.
Results: The qualitative findings revealed that moral capital in auditor selection consists of three overarching themes: Piety (self-restraint, God-consciousness, confidentiality), Meaningfulness (commitment, professionalism, independence, honesty), and Transparency (realism, law-abidingness, accountability). The quantitative results confirmed the validity of the model and demonstrated the significant effect of moral capital on audit quality.
Conclusion: Moral capital can serve as an effective criterion in the auditor selection process and act as a key driver in enhancing audit quality. Incorporating ethical indicators into auditor appointment policies can improve public trust and strengthen the integrity of financial reporting.
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| Keywords: Moral Capital, Auditor Selection, Audit Quality |
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Full-Text [PDF 818 kb]
(29 Downloads)
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Type of Study: Research |
Subject:
Special
Received: 2025/09/23 | Accepted: 2025/11/26 | Published: 2026/08/1
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