The impact of partner perfectionism on audit quality: the mediating role of professional skepticism in the Egyptian context

Abstract

Purpose

This paper aims to investigate the relationship between audit partner perfectionism traits and audit quality in Egypt, emphasizing the mediating role of professional skepticism.

Design/methodology/approach

A mixed-methods approach was used, combining a questionnaire and scenario-based questions for audit partners with secondary data from audited financial statements. The relationships between study variables were tested using structural equation modeling.

Findings

Results denote a significant indirect effect between partner perfectionism traits and audit quality through their professional skepticism. Perfectionism has a significant positive impact on partner professional skepticism, and skepticism influences audit quality.

Practical implications

This study offers opportunities to enhance financial reporting quality, allowing investors to confidently allocate financial market resources. Audit firms can consider the personality traits of auditors in the selection process, team formation and designing training programs. Regulators can use these findings to consider the role of personality traits and attitudes in audit quality when developing regulations and quality assurance systems in Egypt.

Originality/value

To the best of the authors’ knowledge, no studies have examined the effect of partners’ perfectionism traits on professional skepticism and audit quality, especially in Egypt. By examining audit partners, who shape the tone at the top and are accountable for reputation, this study adds a novel dimension to understanding the impact of their qualities on audit outcomes. Moreover, combining survey and secondary data allows us to link these qualities with audit quality, objectively testing our hypotheses.

Citation

Balboula, M.Z. and Elfar, E.E. (2023), "The impact of partner perfectionism on audit quality: the mediating role of professional skepticism in the Egyptian context", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-06-2023-0296