The Impact of Auditors Perception of Authentic Leadership and Ethical Organizational Culture on Reduced Audit Quality Practices

Recently, unprofessional behaviors resulted in many financial scandals and business failures. Many individuals blamed external auditors for failing to detect and report errors and fraud that led to the failures. This study examines the relationship between authentic leadership and ethical organizational culture with reduced audit quality practices. Questionnaire was distributed among all senior auditors employed in the auditing organizations and Iran Association of Certified Public Accounting. Findings of the research show that the poor authentic leadership and ethical organizational culture negatively affected audit quality practices and ethical organizational culture is affected by authentic leadership.