Generation Z and Audit Quality

Rasoul Pourfeizollah; Mahmood Samadi Largani; Morteza  Haji Abbasi; Mohammad Ali  Nasimi

Authors

Rasoul Pourfeizollah Department of Accounting, To.C., Islamic Azad University, Tonekabon, Iran Author https://orcid.org/0000-0001-7308-0812
Mahmood Samadi Largani Department of Accounting, To.C., Islamic Azad University, Tonekabon, Iran https://orcid.org/0000-0003-2661-2358
Morteza Haji Abbasi Department of Accounting, To.C., Islamic Azad University, Tonekabon, Iran Author https://orcid.org/0000-0002-3477-3824
Mohammad Ali Nasimi Department of Business Administration, To.C., Islamic Azad University, Tonekabon, Iran Author https://orcid.org/0000-0001-7498-7790

Keywords:

Generation Z, audit quality, technological empowerment, generational values, organizational requirements, risk management, structural equation modeling

Abstract

This study aimed to examine the effect of Generation Z on audit quality and to test an applied model incorporating technological empowerment, generational values and behaviors, organizational requirements, and risks and challenges. This applied, quantitative, descriptive-correlational study was conducted among 315 professionals working in audit firms, including Generation Z auditors, senior auditors and audit team managers, newly recruited auditing employees, and other practicing auditors. Data were collected using researcher-developed Generation Z and audit quality questionnaires based on themes extracted from the qualitative phase of the research. Construct validity was examined through exploratory factor analysis, while internal consistency was evaluated using Cronbach’s alpha, Guttman, and Spearman–Brown coefficients. The Kaiser–Meyer–Olkin index and Bartlett’s test were used to assess factorability. Because the study variables were non-normally distributed, the measurement and structural models were analyzed using partial least squares structural equation modeling in SmartPLS. Generation Z had a strong, positive, and statistically significant direct effect on audit quality (β = 0.824, t = 45.650, p < 0.001). Technological empowerment had the largest significant indirect effect on audit quality through Generation Z (β = 0.282, t = 22.546, p < 0.001), followed by generational values and behaviors (β = 0.252, t = 24.899, p < 0.001), risks and challenges (β = 0.216, t = 19.852, p < 0.001), and organizational requirements (β = 0.212, t = 17.559, p < 0.001). All factor loadings were statistically significant, composite reliability coefficients exceeded 0.85, average variance extracted values exceeded 0.50, and all Stone–Geisser Q² values were positive and above 0.25, indicating acceptable reliability, convergent validity, and predictive relevance. Generation Z constitutes an important determinant of audit quality, particularly when younger auditors are supported by appropriate technological infrastructure, organizational policies, professional development opportunities, and effective risk-management practices. Audit firms can improve audit outcomes by aligning managerial and technological systems with the characteristics and workplace expectations of Generation Z.

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