Analysis of the role of emotional intelligence, social intelligence and social responsibility of auditors on the audit report readability

asadiyan owghani, Asghar; karimi shalghooni, mansooreh

doi:10.61186/aapc.8.15.297

[Home ] [Archive]

[ فارسی ]

journal of Value & Behavioral Accounting

Main Menu

Home

Journal Information

Editorial Board

Articles archive

Publication Ethics

For Authors

Peer Review Process

Registration

Site Facilities

Contact us

Search in website

Receive site information

Volume 8, Issue 15 (9-2023)

aapc 2023, 8(15): 297-337

Back to browse issues page

Analysis of the role of emotional intelligence, social intelligence and social responsibility of auditors on the audit report readability

Asghar Asadiyan owghani

¹, Mansooreh Karimi shalghooni²

1- Assistant Professor, Department of Accounting, Islamic Azad University, Sarab Branch, Sarab, Iran.(corresponding Author) , as.asadiyan@gmail.com
2- MSc in Accounting, Islamic Azad University, Sarab branch, Sarab, Iran (karimishaalgooni@gmail.com)

Abstract: (433 Views)

The audit report as the result of the auditor's work should be understandable for users. Therefore, the main problem of this research is to investigate the impact of the auditor's personal characteristics, including emotional intelligence, social intelligence, and social responsibility, which are behavioral factors involved in the auditor's personality and lead to the way of writing the audit report, on the readability of this report. This research is applied in terms of purpose and in terms of methodology, it is descriptive-correlation of the type of structural equations, which was used to collect data from standard questionnaires. Using the random sampling method, the research sample includes 91 partners of audit institutions and managers of audit organizations, members of the Certified Public Accountants Society of Iran, who have audited 131 audit reports of selected companies admitted to the Tehran Stock Exchange in 2022. Structural equation model and partial least square method (PLS) have been used to test the hypotheses. The findings show that auditors' emotional intelligence, social intelligence and social responsibility have a positive and significant effect on the readability of the audit report. Therefore, based on the theory of communication and the theory of social identity, it can be stated that the higher the auditors' skills in the field of emotional intelligence, social intelligence and responsibility, the more readable they write in the audit report, which leads to better communication with the users of these reports. The arrangement of the readable writing context of the said report is provided.

Keywords: Emotional Intelligence, Social Intelligence, Social Responsibility, Auditor's Report Readability

Full-Text [PDF 387 kb] (137 Downloads)

Type of Study: Research | Subject: Special
Received: 2023/07/26 | Accepted: 2023/09/22 | Published: 2023/09/22

References

1. Albrecht, K. 2003, The power of minds at work: social intelligence in action”, Amacom BooksBar-On, R.2006. The Bar-On model of emotional-social intelligence (ESI). ArticleRetrieved August 21, 2018, Available at:http://www.eiconsortium.org.

2. Asay, S., E, Brooke., K.Rennekamp, 2017. Disclosure Readability and the Sensitivity of Investors' Valuation Judgments to Outside Information, The Accounting Review, 92 )4(: 1-25.

3. Aymen, A., , B. S., Sourour & M. Badreddine, 2018. The effect of annual report readability on financial analysts’ behavior. Journal of Economics Finance and Accounting, 5(1): 26–37.

4. Bar-on.r. ,2006, The Bar-On Model of Emotional-Social Intelligence، Consortium for Research on Emotional Intelligence in Organizations – Issues in Emotional Intelligence، 13(2): 13-25.

5. Barnett, A., K. Leoffler, 1979. Readability of accounting and auditing messages. The Journal of Business Communication, 16(3): 49–59.

6. Bedard, J.P and R، Coram,. Espahbodi,andT. Mock. 2016. Does recent academic research supportchanges to audit reporting standards? Accounting Horizons, 30(2): 255–275.

7. Beheshtifar,M and F, Roasaei.2012. Role of Social Intelligence inOrganizational Leadership, European Journal of Social Sciences,.28(2): 200-206.

8. Bonsall, S. B., and B. P Miller. 2017. The impact of narrative disclosure readability on bond ratings and the cost of debt. Review of Accounting Studies, 22(2): 608–643.

9. Boritz, J. E., L, Hayes and , L. M. Timoshenko. 2016. Determinants of the readability of SOX 404 reports. Journal of Emerging Technologies in Accounting, 13(2): 145–168.

10. Bozzolan, S، M. Fabrizi ، C.A. Mallinand and G. Michelon. 2015. Corporate Social Responsibility and earnings quality: International evidence. The International Journal of Accounting, 50 (4) : 361–396.

11. Buzan, T. 2002.The power of social intelligence. New York: Perfect Pound Publisher.

12. Cote, S، P. Lopes, P. Salovey and C. .Miners. 2010. Emotional intelligence and leadership emergence in Small groups. The Leadership Suarterly, 21(2): 496-508.

13. Dalwai, T. G, Chinnasamy,and S. Mohammadi Syeeda. 2021. Annual report readability, agency costs, firm performance: An investigation of Oman’s financial sector. Journal of Accounting in Emerging Economies, 11(2): 247–277.

14. Dong, O، R.G، Koper and C.M، Collaço. 2013. Social Intelligence, Selfesteem, and Intercultural Communication Sensitivity. Intercultural Communication Studies.17 (2): 162-165.

15. Fakhfakh, M. 2016. Linguistic performance and legibility of auditors’ reports with modified opinions: An advanced investigation based on the ISAs on audit reports. Asian Review of Accounting. 24(1): 105-130.

16. Ford, M. M.S ،Tisak.1983. A further search for socialintelligence, Journal of Educational Psychology. 75(2): 197.

17. Goleman, D. R, Boyatzis, and A. McKee.2006. Primal Leadership: Realizing the Power of Emotional Intelligence. Boston, MA: Harvard Business School Press6 :122-128.

18. Goleman, D.1998 .Emotional intelligent, New York, Bantam Books: 95-98.

19. Green, S. B. 1991. How many subjects does it take to do a regression analysis. Multivariate Behavioral Research, 26(3): 499-510

20. Grzegorz,Z. M, Salehi, and M. Seifzadeh. 2022. The Effect of Management Characteristics on Audit Report Readability. Economies 10(1):1-23.

21. Hoi, C. K. , Q. Wu and H، Zhang. 2013. Is corporate social responsibility (CSR) associated with tax avoidance? Evidence from irresponsible CSR activities. Accounting Review, 88 (6):2025–2059.

22. Hulland, J. 1999. Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20 ( 2): 195 -204 .

23. Lathesh, K. R, Avadhani. 2018. A Study On Social Intelligence And Its Impact OnEmployee Performance Of Insurance Sectors In Mysuru City. International Journal ofMechanical Engineering and Technology (IJMET) , 9 (1): 530–537.

24. Li, F .2008 .Annual Report Readability, Current Earnings, and Earnings Persistence. Journal of Accounting and Economics, 45)2:(221-247.

25. Libby, R. 1979. Bankers’ and auditors’ perceptions of the message communicated by the audit report. Journal of Accounting Research, 17(1): 99–122.

26. Loughran, T and B, McDonald. 2014. Measuring Readability in Financial Disclosures, the journal of finance, lxix .67 )4:(248- 273.

27. Mayer, J. D, Caruso and P. Salovey. 1999. Emotional intelligence meets traditional standards for an intelligence. Intelligence, Issue, 27)4:(267–298.

28. Minyoung، N. 2021. Culture and annual report readability. International Journal of Accounting & Information Management, 29(4): 583–602.

29. Nijholt. A. O، Stock and T، Nishida. 2009. Social intelligence design in ambient intelligence; AI & Soc; 24(4): 22-43.

30. Nor, M. N, M, Smith ang Z، Ismail. 2009. Auditors' perception of time budget pressure and reduced audit quality practices: A preliminary study from Malaysian context. Journal of Edith Cowan University,97(1): 1–11.

31. Orlitzky, M. , F.L، Schmidt and S.L، Rynes. 2003. Corporate social and financial performance: A meta analysis. Organization Studies, 24 (3): 403– 441.

32. Quirk, S. 2015. Personality Disorder and Population Mental Health. The Lancet Psychiatry, 9(9): 921-919

33. Salovey, P. 1990. Emotional intelligence. Imagination, Cognition andPersonality, 9(4):185–211.

34. Sarstedt, M., J. F. Hair Jr, C. Nitzl, C. M. Ringle, and M. C. Howard. 2020. Beyond a tandem analysis of SEM and PROCESS: Use of PLS -SEM for mediation analyses!. International Journal of Market Research, 62 ) 3(: 288 -299 .

35. Silvera, D .H, Martinussen, and M. Dahl. 2001. The Tromso Social Intelligence Scale, a self-report measure of social intelligence. Scand J Psychol, 42(4):313.

36. Smith, J. E., N.P Smith. 2021. Readability: A measure of the performance of the communication function of financial reporting. The Accounting Review, 46(3): 552–561.

37. Smith, W. 2023. Tell Me More: A content analysis of expanded auditor reporting in the United Kingdom. Journal of Accounting, Organizations and Society, 28(2): 391- 408.

38. Suttipun, M. 2022. External auditor and KAMs reporting in alternative capital market of Thailand. Meditari Accountancy Research, 30(1): 74–93.

39. Tajfel, H., J. Turner. 1979. An integrative theory of intergroup conflict. In W. G. Austin, & S. Worchel (Eds), The social psychology of intergroup relations :33–47.

40. Velte, P. 2018. Does gender diversity in the audit committee influence key audit matters’ readability in the audit report? UK evidence. Corporate Social Responsibility and Environmental Management, 25(5): 748–755.

41. Velte, P. 2020. Associations between the financial and industryexpertise of audit committee members and key audit matters within related audit reports. Journal of Applied Accounting Research, 21(1): 185–200

42. Wang, Q. , J. Dou, J and S. Jia. 2016. A meta‐analytic review of corporate social responsibility and corporate financial performance: The moderating effect of contextual factors. Business and Society, 55 (8): 1083–1121.

43. Wenzhang, S.Z, W. Jiawei and W , Xuhui. 2022. Do board secretaries influenceannual report readability?Pacific Accounting Review. )35:( 126-160.

44. Zhao. Mingyuan، B. L، Yuyue. L، Jie. 2022. The effect of audit team's emotional intelligence on reduced audit quality behavior in audit firms.National Libraryof medicine,1(4):232–242.

Add your comments about this article

‎ 10.61186/aapc.8.15.297

Mendeley

Zotero

RefWorks

asadiyan owghani A, karimi shalghooni M. Analysis of the role of emotional intelligence, social intelligence and social responsibility of auditors on the audit report readability. aapc 2023; 8 (15) :297-337
URL: http://aapc.khu.ac.ir/article-1-1176-en.html

Rights and permissions
	This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Volume 8, Issue 15 (9-2023)

Back to browse issues page

Persian site map - English site map - Created in 0.09 seconds with 37 queries by YEKTAWEB 4645