Abstract
This study contributes to the psychological contracts literature by examining the consequences of ideological psychological contract (IPC) fulfilment in audit firm-auditor relationships. Drawing from psychological contract theory, we hypothesize that IPC fulfillment is positively associated with auditors’ intentions to engage in skeptical actions and organizational citizenship behaviors (OCB). Moreover, we predict work meaningfulness to mediate these relationships. We tested our theoretical model by conducting a two-wave online survey involving 250 auditors in the Philippines. Results reveal that IPC fulfillment increases auditors’ intentions to engage in skeptical action and OCBs. Work meaningfulness also acted as a significant explanatory mechanism that links these relationships. This study provides insights into how auditor–audit firm relationships anchored on ideologies reinforce aspects of auditor performance which contributes to the firms’ audit quality initiatives. Our findings have theoretical and practical implications for audit firms, regulators, standard setters, and researchers.
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