Abstract:
Audit professionals have faced fierce criticism and scrutiny due to scandals linked to corporate
failures, accounting irregularities and unethical practices, bringing to question conduct by
auditors. Prior studies conducted on professional identity in the audit profession examined the
influence of an employer firm identity on auditors’ ethical conduct, with focus on firms in Europe
and North America. Theoretical gaps from these studies were on understanding the multiplicity
of auditor identities in diverse cultures, effects of conflicting identities, with recommendations
to expand previous studies to under-researched geographical regions and inclusion of
auditors in firms other than “Big 4”. This study advances debate through perspectives from the
lived experiences of auditors working in firms of different sizes in South Africa, an emerging
market context.
Qualitative methods were used to explore how the professional identity of auditors is
influenced by personal identity, the employer firm identity and other consequential influences
on ethical behaviours. Semi-structured interviews were used to capture data from 15
participants of diverse nationalities and racial profiles with at least five years of auditing
experience.
The findings indicate that for auditors, professional identity has no exclusive and linear
relationship with the firm identity, contributing to the understanding of the interrelation between
professional identity and firm identity within the identity theory. Other social identities, namely
academic training, professional standing and background contribute to auditor identity
formation, demonstrating new insights on the influence of multiplicity of identities for auditors.
Whilst firm identity exerts notable influence on the auditors’ professional identity, factors such
as firm values and leadership have material effects. Relatedly, experiences of marginalisation
of black professionals pose a high risk for identity conflict between firm identity and the
professional identities of practitioners. The findings covered auditors from different size firms,
responding to previous studies' recommendations.
Overall, the study's findings show that professional standards have greater influence on
professional identity and the ethical conduct of auditors than the firm identity, providing a
contrasting insight to previous studies. Congruency was found between the respondents’
personal identities and professional standards rather than the firm identity. The findings
challenge the level of influence firm identity has on professional identity and ethical conduct
