Modeling the Relationship between Organizational Characteristics, Ethical Orientation, and the Threat to Auditors' Independence

The importance of the concept of independence in independent auditing is such that it needs little justification to prove it as one of the foundations in the structure of any audit theory. Numerous factors such as financial interests, mental attitude, freedom of action and organizational status, moral attitude, etc. can affect the independence of the auditor. Therefore, the present study examines and models the relationship between organizational characteristics, ethical orientation, and the threat to auditors' independence. 

This applied research is descriptive-survey in nature, in terms of method, correlation. The statistical population was all members of the Society of Certified Public Accountants and 338 people were selected as a statistical sample through random sampling. Data collection tool was a questionnaire and after collecting information from the distribution of questionnaires, the data were analyzed by factor analysis and path analysis using Excel and Smart PLS software.

  The findings showed that organizational characteristics have a positive and significant relationship with auditors' independence and auditors' ethical orientation (experience and objectivity (neutrality) and idealism) has a significant relationship with auditors' independence, but competence has a relationship with auditor independence did not have.   

The promotion of the auditing profession depends on maintaining the independence of the auditor (apparent and real independence), therefore, in order to gain public trust in the reports issued by auditors, serious efforts are needed to maintain both aspects of independence. Are important to the organization. The auditor's ethics are important in the degree of trust in his report and to a large extent the ethical orientation affects his independence.