The Influence of Auditor Identity on Auditor Decision-Making and Audit Quality With a Literature Review Approach

This paper examines the influence of identity on decision-making and audit quality with a literature review approach, as well as integrating agency theory as the main analytical framework. Agency theory explains the relationship between the principal and the agent, where the auditor acts as an agent representing the interests of the stakeholders in the financial statements. This study identifies that aspects of auditor professional identity, such as competence, independence, ethics, and motivation, play an important role in influencing auditors' decisions during the audit process. In the context of agency theory, the identity of the auditor can be seen as a factor that affects the reliability and objectivity of the information conveyed to the principal. In addition, work environment and time pressures are also reviewed as external factors that can affect audit quality. The results of the study show that improving understanding of auditors' professional identities and the interaction between these variables can help improve audit quality, as well as build public trust in financial statements. Thus, this paper recommends strengthening the professional identity of auditors through continuing education and policies that support integrity, for the creation of accountable and trusted audit practices.