A new publication by Professor Erekle Pirveli of the Caucasus School of Business has been published in the British “A” level scientific journal International Journal of Auditing (Wiley, Scopus Q1, ABDC “A”).

What matters more to Georgian auditors – commercial goals or professional ethics?

The article – “Commercialization, Dedication to the Profession and Environmental Uncertainty: Georgian Auditors' Perspective” – explores the relationship between the level of commercialization and professional values among Georgian auditors, particularly under conditions of environmental uncertainty. This is the first large-scale study focusing on the behavioral characteristics of certified auditors operating in Georgia.

The research was conducted in collaboration with professors from Jönköping University, Prof. Timur Uman and Prof. Andreas Jansson. The project was funded by the Shota Rustaveli National Science Foundation under the Young Scientist Grant and was carried out over a four-year period.

 
Open access article link. 

Abstract:

This paper examines the association between commercialization in the auditing profession and auditors' dedication to the profession. The paper further explores the contingent role of environmental uncertainty in this relationship. We hypothesize that these relations are contextually situated and that in a transitional economy like Georgia, commercialization is positively associated with auditors' dedication to the profession. We furthermore hypothesize that under a high perceived level of environmental uncertainty, commercialization instead becomes negatively associated with auditors' dedication to the profession. Our study relies on the responses of 235 certified Georgian auditors. In line with our expectations, our findings indicate that increasing commercialization in the auditing profession is positively associated with increasing dedication to the profession. We further find that increasing environmental uncertainty has a negative moderating effect on the relationship between commercialization in the auditing profession and auditors' dedication to the profession, driven mainly by existential uncertainty regarding the survival of the auditing firm. Exploring these relationships, our study contributes to an emerging discussion on the role of commercialization in professionals' perceptions of and attachment to their profession. Our study further highlights the role of environmental uncertainty in affecting the work performed by auditors in emerging economies.