Designing an Auditor Competency Model Using the Discrete Consensus Support Method

Abstract

This study aimed to design and explain a structural model of auditor competencies through systematic identification of competencies, screening them using the discrete consensus support method, and determining the hierarchical relationships among the selected components. This applied study employed an exploratory mixed-method and modeling approach. In the first stage, auditor competencies were identified through a systematic review of the relevant literature. The extracted competencies were subsequently screened using the discrete consensus support method based on expert judgments. The study population consisted of practicing auditors in Iraq with at least 5 years of professional auditing experience and university academics in Iran and Iraq with at least 8 years of teaching experience. Participants were selected using non-probability snowball sampling, and 24 experts participated in the study. The content validity of the instruments was evaluated by university academics and professional experts, and the necessary revisions were subsequently made. Finally, interpretive structural modeling was employed to determine the interrelationships, driving and dependence powers, and hierarchical levels of the selected auditor competencies. The discrete consensus support analysis indicated that 15 of the 18 initially identified competencies achieved an acceptable level of expert agreement and support, whereas 3 competencies were excluded. The highest levels of consensus were obtained for professional ethics and independence, accounting and auditing knowledge, professional judgment and skepticism, and audit risk management. Interpretive structural modeling classified the retained competencies into 6 hierarchical levels. Adaptability and flexibility occupied the most fundamental level and demonstrated the highest driving power. Continuous learning and professional development and knowledge of laws and regulations were also identified as major driving competencies. In contrast, documentation and reporting demonstrated the highest dependence power and occupied the uppermost level as the final outcome of interactions among other competencies. Professional judgment and skepticism and audit risk management were also identified as highly dependent, higher-level performance competencies. The proposed model demonstrates that auditor competency is multidimensional and hierarchical, and strengthening fundamental competencies, particularly adaptability, continuous learning, and regulatory knowledge, can facilitate the development of technical, analytical, and managerial competencies and ultimately improve professional judgment, audit risk management, and reporting quality.