TY  - JOUR
AB  - Purpose The purpose of this paper is to study whether diverting auditors to erroneous accounts leads to higher effectiveness and detection of errors. Also, this paper investigates the effect of the need for cognitive closure of auditors on audit effectiveness and detection of errors in the presence of audit management.Design/methodology/approach The authors used a financial statement containing a diverting statement and several errors for measuring audit management and used a survey to measure auditors’ need for closure. Research sample consisted of 79 independent auditors having above three years of audit experience. The set of financial statement and questionnaire (measuring the need for closure of auditors) was given to auditors and they had enough time to fill them.Findings Results show that diverting auditors to accounts containing error does not lead to higher effectiveness and detection of errors. Also, auditors need for closure character does not affect their effectiveness and detection of errors in the financial statements.Practical implications Diverting auditors to erroneous accounts leads to higher detection of earning management. With this regard, the results increase the awareness of auditors that diverting auditors away from important errors to easy-to-detect erroneous accounts leads to their belief of achieving the audit objectives by detecting phony errors and misstatements. In other words, the results alert auditors of managers’ techniques of audit management.Originality/value This study contributes to the literature on audit management and need for cognitive closure of auditors in Iran’s audit environment and introduces these concepts to this environment. The paper will be of value to Association of Iranian Certified Public accountants to include stricter measure in appraisal of audit firms’ quality and educate its participants about audit management and mediating effect of the need for closure of auditors on the detection of errors and misstatements in financial statements.
VL  - 9
IS  - 2
SN  - 2042-1168
DO  - 10.1108/JAEE-08-2018-0092
UR  - https://doi.org/10.1108/JAEE-08-2018-0092
AU  - Safipour Afshar Mojtaba
AU  - Pourheidari Omid
AU  - Al-Gamrh Bakr
AU  - Afshar Jahanshahi Asghar
PY  - 2019
Y1  - 2019/01/01
TI  - Audit management, need for closure and detection of misstatements
T2  - Journal of Accounting in Emerging Economies
PB  - Emerald Publishing Limited
SP  - 237
EP  - 250
Y2  - 2024/04/25
ER  -