Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing?
Many recent professional reports have reported that professional turnover is a primary concern for the audit profession. Also, based on the information received from the Securities and Exchange Organization by March 2019, the average retention period for auditors who worked in their trusted firms wa...
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| Format: | Article |
| Language: | English |
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Ferdowsi University of Mashhad
2023-01-01
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| Series: | Iranian Journal of Accounting, Auditing & Finance |
| Subjects: | |
| Online Access: | https://ijaaf.um.ac.ir/article_42678_f891dde1d2779b9e5844abe358a97cf8.pdf |
| _version_ | 1826921769109291008 |
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| author | Saeed Ghasemi Mohammadreza Mehrabanpour Ghodratillah Talebnia |
| author_facet | Saeed Ghasemi Mohammadreza Mehrabanpour Ghodratillah Talebnia |
| author_sort | Saeed Ghasemi |
| collection | DOAJ |
| description | Many recent professional reports have reported that professional turnover is a primary concern for the audit profession. Also, based on the information received from the Securities and Exchange Organization by March 2019, the average retention period for auditors who worked in their trusted firms was 574 days, which is too low compared to global statistics. This study investigates why auditors leave public accounting and the consequences of auditor departures. We find that audit competency is negatively associated with a departure decision. Specifically, audit partners, managers, and auditors generating more audit revenues and providing higher quality audits have a lower likelihood of departure. Therefore, this study examines why auditors leave the formal accounting profession and the consequences of auditors leaving the profession. In order to achieve this goal, the present study uses a data theory strategy based on interviews with 18 experts in the auditing profession in 2022 who were improbably and purposefully selected using the snowball method. Finally, the developed model includes four categories of conditions (including individual factors, job factors, internal organizational links, organizational characteristics, perceived organizational climate, organizational job attitudes, audit fees, and career advancement), context (including macro-level factors). At the professional level, actions and consequences were presented and conceptualized. Finally, it can be said that the present study can provide specific and interesting perspectives for the auditing profession, auditing firms, and legislators to use in relation to the performance analysis of the profession. |
| first_indexed | 2025-02-17T13:54:06Z |
| format | Article |
| id | doaj.art-6161233e847c423996587e517024e049 |
| institution | Directory Open Access Journal |
| issn | 2717-4131 2588-6142 |
| language | English |
| last_indexed | 2025-02-17T13:54:06Z |
| publishDate | 2023-01-01 |
| publisher | Ferdowsi University of Mashhad |
| record_format | Article |
| series | Iranian Journal of Accounting, Auditing & Finance |
| spelling | doaj.art-6161233e847c423996587e517024e0492024-12-25T06:46:17ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422023-01-0171699110.22067/ijaaf.2023.42678.116842678Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing?Saeed Ghasemi0Mohammadreza Mehrabanpour1Ghodratillah Talebnia2Department of Accounting, Kish International Campus, University of Tehran, Tehran, IranDepartment of Accounting and Finance, Faculty of management and accounting, University of Tehran, Farabi Campus, Qom, IranDepartment of Accounting, Science and Research Branch, Islamic Azad University, Tehran, IranMany recent professional reports have reported that professional turnover is a primary concern for the audit profession. Also, based on the information received from the Securities and Exchange Organization by March 2019, the average retention period for auditors who worked in their trusted firms was 574 days, which is too low compared to global statistics. This study investigates why auditors leave public accounting and the consequences of auditor departures. We find that audit competency is negatively associated with a departure decision. Specifically, audit partners, managers, and auditors generating more audit revenues and providing higher quality audits have a lower likelihood of departure. Therefore, this study examines why auditors leave the formal accounting profession and the consequences of auditors leaving the profession. In order to achieve this goal, the present study uses a data theory strategy based on interviews with 18 experts in the auditing profession in 2022 who were improbably and purposefully selected using the snowball method. Finally, the developed model includes four categories of conditions (including individual factors, job factors, internal organizational links, organizational characteristics, perceived organizational climate, organizational job attitudes, audit fees, and career advancement), context (including macro-level factors). At the professional level, actions and consequences were presented and conceptualized. Finally, it can be said that the present study can provide specific and interesting perspectives for the auditing profession, auditing firms, and legislators to use in relation to the performance analysis of the profession.https://ijaaf.um.ac.ir/article_42678_f891dde1d2779b9e5844abe358a97cf8.pdfauditor leavingleaving the profession of certified public accountantmodeling |
| spellingShingle | Saeed Ghasemi Mohammadreza Mehrabanpour Ghodratillah Talebnia Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing? Iranian Journal of Accounting, Auditing & Finance auditor leaving leaving the profession of certified public accountant modeling |
| title | Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing? |
| title_full | Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing? |
| title_fullStr | Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing? |
| title_full_unstemmed | Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing? |
| title_short | Modeling the Consequences of the Auditors' Leaving the Public Accounting Profession: Is There a Brain Drain in Auditing? |
| title_sort | modeling the consequences of the auditors leaving the public accounting profession is there a brain drain in auditing |
| topic | auditor leaving leaving the profession of certified public accountant modeling |
| url | https://ijaaf.um.ac.ir/article_42678_f891dde1d2779b9e5844abe358a97cf8.pdf |
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