Auditors' Internal Locus of Control and Professional Commitment: Does Psychological Well-being Matter?

Objective The auditors' professional commitment has always been one of the most critical factors in introducing the vital position of auditing in society and promoting the growth and development of the auditing profession. Due to the numerous financial scandals worldwide, auditors' professional commitment has become more important. One factor affecting auditors' professional commitment is their differences, such as internal locus of control. Also, psychological factors, one of which is psychological well-being, play an important role in this issue. This study aims to investigate the mediating role of auditors' psychological well-being in the relationship between the internal locus of control and their professional commitment. Methods This research is applied research, and in terms of method, it is a descriptive survey. Since it was conducted in a real environment, i.e., audit organizations and audit firms, it is considered a field research type. Multiple regression models were used to test the research hypotheses, and the Sobel test was used to examine the role of the mediator variable (psychological well-being). The statistical population of this research consists of certified public accountants who are self-employed or employed in audit organizations and audit firms. Based on the latest data from the Iranian Association of Certified Public Accountants (IACPA) website, the total population was 1,984 individuals. Data were collected using a questionnaire, resulting in 247 completed responses. Results The results show that auditors' internal locus of control positively and significantly affects their professional commitment. Psychological well-being, as a mediating variable, strengthens the positive relationship between auditors' internal locus of control and their professional commitment. In other words, the research showed that in addition to the direct effect that auditors' internal locus of control has on their professional commitment, they also have an indirect effect on professional commitment through psychological well-being. Conclusion The research results indicate a positive effect of auditors' internal locus of control on their professional commitment. Moreover, the positive role of psychological well-being in strengthening this relationship has been confirmed. These findings suggest that auditors with an internal locus of control experience a higher degree of psychological well-being. This internal positive feeling, in turn, leads to greater professional commitment. The research emphasizes the importance of considering psychological factors and individual differences when hiring auditors or granting licenses to certified public accountants. Job applicants in the auditing profession should be carefully evaluated in terms of their personal and psychological characteristics at the beginning of their employment. Such evaluations at the entry stage can foster professional commitment, support the growth and development of the auditing profession, and help prevent potential future problems. Given that the professional commitment of auditors is one of the critical challenges facing the auditing profession, the findings of this research can be valuable to policymakers, as well as organizations involved in auditing financial statements in the country, namely, the Audit Organization and audit firms that are members of the IACPA.