Professional Auditing Research

Professional Auditing Research

Investigation the effect of subjective distance and communication distance on audit quality threatening behavior

Document Type : Original Article

Authors
1 Associate Professor. Department of Accounting, Faculty of Financial Sciences, Kharazmi University .Tehran. Iran.
2 Msc. Student. Department of Accounting, Kharazmi University. Tehran, Iran.
Abstract
The purpose of the present study is to investigate the effect of subjective distance and communication distance on audit quality threatening behavior.The research is applied and descriptive-correlational in nature, with data collected through field surveys using structured questionnaires. The statistical population consists of 270 certified public accountants working in "A-grade" audit firms and the Supreme Audit Organization of Iran in 2025. Based on the Cochran formula, a sample of 158 auditors was selected. Data analysis was conducted using Structural Equation Modeling (SEM) via PLS software.The results reveal that increased mental distance among auditors significantly heightens audit quality-threatening behaviors (P=0.001). Furthermore, communication distance, particularly when digital communication tools are poorly managed, leads to greater misunderstandings, reduced trust, and weakened information exchange, thereby increasing the likelihood of quality-threatening actions. Conversely, the use of advanced and transparent digital communication platforms can mitigate these negative effects.The findings highlight the critical role of effective relationship management within audit teams. To enhance audit quality, audit firms should focus on reducing mental distance through fostering team identity and cohesion while simultaneously improving digital communication infrastructure. These measures are essential not only for strengthening audit quality but also for preserving public trust and supporting the integrity of capital markets in Iran.
Keywords

Subjects


احمدی، محسن و ملک زاده، روح انگیز. (1401). بررسی عوامل فاصله انتظارات بین حسابرسان و استفاده کنندگان گزارش حسابرسی در شرکت های پذیرفته شده در بورس اوراق بهادار تهران، اولین همایش بین المللی پژوهش های شاخص در مدیریت، حسابداری، بانکداری و اقتصاد، مشهد.
اسناد، فاطمه؛ داغانی، رضا؛ یوسفی زاده؛ سحر. (1401). تأثیر ارتباطات اجتماعی حسابرسان بر کیفیت حسابرسی. تحقیقات حسابداری و حسابرسی، 5(19): 101-129.
اشرفی، بختیار؛ حاجیها، زهره؛ تهرانی، رضا. (1402). طراحی مدل تورش رفتاری حسابرسان با تاکید بر ویژگی های فردی و عمومی حسابرس به روش داده بنیاد. دانش حسابداری و حسابرسی مدیریت، 12(45): 483-498.
ایوانی، فرزاد؛ عبدی، حدیث؛ خیراللهی، فرشید و علیمرادی، مهری. (1401). بررسی رابطه بین شکاف انتظار حسابرسی و اطمینان سرمایه­گذاران: بررسی نقش بهبود سطح ارتباطات حسابرسان. مطالعات تجربی حسابداری مالی، 5(19): 117-149.
حسنی، محمد؛ محمدی، مهسا. (1399). تأخیر زمانی در ارائه گزارش حسابرسی و نزدیکی فاصله جغرافیایی دفتر مؤسسه حسابرسی به دفتر مرکزی صاحبکار: شواهدی از مزیت اطلاعاتی ناشی از تعامل مشترک و بهبود کارایی حسابرسی. پژوهش‌های حسابرسی حرفه‌ای، 1(1): 114-137.
لیثی، علیزضا؛ نونهال نهر، علی اکبر؛ محمدزاده سالطه، حیدر و زینالی مهدی.  (1400). ارائه الگوی نقشه‌پردازی ذهنی در بهبود گزارش‌گری حسابرسی. دو فصلنامه حسابداری ارزشی و رفتاری، ۶ (۱۱) :۱۵۹-۱۸۶
محمدی، محمد؛ محمدی، سامان؛ الیاسی، یاسر. (1402). اثرتعدیل‌کننده شورای گزارشگری مالی بررابطه بین فاصله انتظارات حسابرسی و میزان اعتماد سهامداران در سازمان امور مالیاتی و جامعه حسابداران رسمی. پژوهش‌های حسابرسی حرفه‌ای، 3(10): 28-55.
 
Ahmadi, Mohsen and Malekzadeh, Rooh-e-Zainiz. (2022). Investigating the factors of the gap in expectations between auditors and users of audit reports in companies listed on the Tehran Stock Exchange, First International Conference on Key Research in Management, Accounting, Banking and Economics, Mashhad. (in persian)
Esnad, Fatemeh; Daghani, Reza; Yousefizadeh; Sahar. (2013). The effect of auditors' social communication on audit quality. Accounting and Auditing Research, 5(19): 101-129. (in persian)
Ashrafi, Bakhtiar; Hajiha, Zohreh; Tehrani, Reza. (2010). Designing a model of auditors’ behavioral bias with an emphasis on individual and general characteristics of the auditor using a data-driven approach. Accounting and Management Auditing Knowledge, 12(45): 483-498. (in persian)
Ivani, Farzad; Abdi, Hadith; Khairollahi, Farshid and Alimoradi, Mehri. (2013). Investigating the relationship between the audit expectation gap and investor confidence: Investigating the role of improving auditor communication. Empirical Studies in Financial Accounting, 5(19): 117-149. (in persian)
Hassani, Mohammad; Mohammadi, Mahsa. (2019). Time delay in presenting the audit report and the proximity of the audit firm's office to the client's head office: Evidence of information advantage resulting from joint interaction and improving audit efficiency. Professional Auditing Research, 1(1): 114-137. (in persian)
Leithi, Aliza; Nunhal Nahr, Ali Akbar; Mohammadzadeh Salteh, Heydar and Zeinali Mehdi. (2012). Presenting a Mind Mapping Model in Improving Audit Reporting. Bi-Quarterly Journal of Value and Behavioral Accounting, 6(11):159-186. (in persian)
Mohammadi, Mohammad; Mohammadi, Saman; Eliasi, Yasser. (2013). The moderating effect of the Financial Reporting Council on the relationship between audit expectation gap and shareholder trust in the Tax Affairs Organization and the Certified Public Accountants Association. Professional Auditing Research, 3(10): 28-55. (in persian)
Annelin, A. (2022). Audit team equality and audit quality threatening behaviour. Managerial Auditing Journal38(2), 158-185. DOI: 10.1108/MAJ-12-2021-3417
Annelin, A. (2024). Audit team competence, auditor motivation and audit quality threatening behaviour. International Journal of Accounting, Auditing and Performance Evaluation20(3-4), 368-398. DOI: 10.1504/IJAAPE.2024.138398 
Annelin, A., & Che, L. (2023). Audit Team Distance and Audit Quality Threatening Behavior. Auditing: A Journal of Practice & Theory43(1), 27-49. DOI: 10.2308/AJPT-2021-035 
Baltes, B. B., Dickson, M. W., Sherman, M. P., Bauer, C. C., & LaGanke, J. S. (2022). Virtual teams: Evolution and insights for the future. Small Group Research, 53(1), 3-25. DOI: 10.1177/10464964211053886
Bauer, T. D., Humphreys, K. A., & Trotman, K. T. (2022). Group judgment and decision making in auditing: Research in the time of COVID-19 and beyond. Auditing: A Journal of Practice & Theory41(1), 3-23. DOI: 10.2308/AJPT-2021-033
Bennett, G. B., & Hatfield, R. C. (2013). The effect of the social mismatch between staff auditors and client management on the collection of audit evidence. The Accounting Review88(1), 31-50. DOI: 10.2308/accr-50282
 Carlisle, M., Gimbar, C., & Jenkins, J. G. (2023). Auditor-Client interactions—An exploration of power dynamics during audit evidence collection. Auditing: A Journal of Practice & Theory42(1), 27-51. DOI: 10.2308/AJPT-2021-025
 Doan, T. N., Ta, T. T., Le, T. K. H., & Tran, V. A. (2025). the impact of auditors’ emotional intelligence (EI) and leadership styles in the audit team on audit quality: A study of audit Team Governance. Journal of Governance and Regulation/Volume14(1). DOI: 10.22495/jgrv14i1art3
 Downey, D. H., Obermire, K. M., & Zehms, K. M. (2020). Toward an understanding of audit team distribution and performance quality. Auditing: A Journal of Practice & Theory39(4), 87-112. DOI: 10.2308/ajpt-18-022
Foster, M. K., Abbey, A., Callow, M. A., Zu, X., & Wilbon, A. D. (2015). Rethinking virtuality and its impact on teams. Small Group Research46(3), 267-299. DOI: 10.1177/1046496415573795
Frink, D. D., Hall, A. T., Perryman, A. A., Ranft, A. L., Hochwarter, W. A., Ferris, G. R., & Todd Royle, M. (2008). Meso-level theory of accountability in organizations. In Research in personnel and human resources management (pp. 177-245). Emerald Group Publishing Limited. DOI: 10.1016/S0742-7301(08)27005-7
 Hanes, D. R. (2013). Geographically distributed audit work: Theoretical considerations and future directions. Journal of Accounting Literature32(1), 1-29. DOI: 10.1016/j.acclit.2013.10.001
 Hay, D., Knechel, W. R., & Willekens, M. (Eds.). (2014). The Routledge companion to auditing. Abingdon, Oxon: Routledge.
 Herda, D. N., Cannon, N. H., & Young, R. F. (2019). Workplace mindfulness and its effect on staff auditors' audit quality-threatening behavior. Behavioral Research in Accounting31(1), 55-64. DOI: 10.2308/bria-52354
Hertel, G., Konradt, U., & Orlikowski, B. (2004). Managing distance by interdependence: Goal setting, task interdependence, and team-based rewards in virtual teams. European Journal of work and organizational psychology13(1), 1-28. DOI: 10.1080/13594320344000228 
Jung, M. F. (2016). Coupling interactions and performance: Predicting team performance from thin slices of conflict. ACM Transactions on Computer-Human Interaction (TOCHI)23(3), 1-32. DOI: 10.1145/2928269 
Kuselias, S., Agoglia, C. P., & Wang, E. Y. (2023). The effect of team member proximity and assignment length on audit staff reliance on a supervisor's preferences. Accounting, Organizations and Society105, 101391. DOI: 10.1016/j.aos.2022.101391
Nurhidayah, N., Sudarma, M., Djamhuri, A., & Atmini, S. (2024). Audit opinion research: overview and research agenda. Cogent Business & Management11(1), 2301134. DOI: 10.1080/23311975.2024.2301134
Okabe-Miyamoto, K., Folk, D., Lyubomirsky, S., & Dunn, E. W. (2021). Changes in social connection during COVID-19 social distancing: It’s not (household) size that matters, it’s who you’re with. Plos one16(1), e0245009. DOI: 10.1371/journal.pone.0245009
Proell, C. A., Ricci, M. A., Trotman, K. T., & Zhou, Y. (2024). How workplace identities and team management practices affect distributed team auditors' willingness to speak up. Contemporary Accounting Research, 41(1), 562-590. DOI: 10.1111/1911-3846.12917
Sweeney, B., & Pierce, B. (2015). Audit quality threatening behaviours: Perceptions of auditees. Accounting, Finance & Governance Review22(2). DOI: 10.52399/001c.11713
Trope, Y., & Liberman, N. (2010). Construal-level theory of psychological distance. Psychological review117(2), 440. DOI: 10.1037/a0018963
Weisner, M. M. (2015). Using construal level theory to motivate accounting research: A literature review. Behavioral Research in Accounting27(1), 137-180. DOI: 10.2308/bria-50924
Wen, T. (2020). How Coronavirus Has Transformed the Way We Communicate. BBC. 2020. Available at: https://www.bbc.com/worklife/article/20200408-coronavirus-how-lockdown-helps-those-who-fear-the- phone.
Wilson, J. M., Boyer O'Leary, M., Metiu, A., & Jett, Q. R. (2008). Perceived proximity in virtual work: Explaining the paradox of far-but-close. Organization studies29(7), 979-1002. DOI: 10.1177/0170840607083105
Zhang, D. J., Veltrop, D. B., Hooghiemstra, R. B., & Rink, F. (2023). Does auditor resilience mitigate the effects of multiple team memberships on quality threatening behaviors? Auditing: A Journal of Practice & Theory42(4), 179-203. DOI: 10.2308/AJPT-2021-037