The Research Department of Economics and Management of Tadbir Nikan Business, Marketing, and Finance Open 3092-6238 In Press 2026 11 01 Studying the Impact of Business Ethics on Auditors' Psychological Conditions Studying the Impact of Business Ethics on Auditors' Psychological Conditions 1 13 EN Journal Article 2026 01 01 <p>The present study aimed to investigate the effect of business ethics on the psychological conditions of auditors employed in audit firms in Iraq. This applied study employed a descriptive-survey design. The statistical population consisted of 750 auditors working at different organizational levels, including junior auditors, senior auditors, middle-level auditors, and audit managers in Iraqi audit firms. Based on Cochran’s formula, 254 participants were selected through purposive random sampling. Data were collected using standardized questionnaires measuring business ethics and auditors’ psychological conditions. The psychological variables included depression and anxiety, self-regulation, happiness, aggression, effort–reward imbalance, attitudes toward fraud, and flourishing. Content validity was confirmed through expert review, and reliability was assessed using Cronbach’s alpha coefficient. Structural equation modeling and confirmatory factor analysis were used to analyze the data. The findings demonstrated that business ethics had significant relationships with multiple psychological dimensions among auditors. Higher levels of business ethics were associated with lower levels of depression, anxiety, aggression, effort–reward imbalance, and positive attitudes toward fraud. In contrast, business ethics showed positive and significant associations with self-regulation, happiness, and flourishing among auditors. Confirmatory factor analysis indicated strong construct validity for the business ethics, aggression, and attitudes toward fraud questionnaires, with most factor loadings exceeding acceptable thresholds and all items reaching statistical significance at the 0.000 level. The results further revealed that ethical organizational environments contributed to improved emotional regulation, reduced workplace conflict, enhanced organizational justice, and greater professional well-being among auditors. The results indicate that strengthening business ethics within audit firms can substantially improve auditors’ psychological health and professional well-being. Ethical organizational climates reduce psychological distress, foster emotional stability, enhance self-regulation, and decrease destructive workplace behaviors. Furthermore, adherence to ethical principles strengthens auditors’ sense of organizational justice, professional commitment, and flourishing. The study highlights the critical role of ethics-oriented management practices in supporting the mental health and professional effectiveness of auditors in Iraq’s auditing industry.</p> https://bmfopen.com/index.php/bmfopen/article/download/453/346