Organizational and professional commitment on dysfunctional audit behaviour (original) (raw)
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Asia-Pacific Management Accounting Journal, 2018
Public accounting firms are expected to increase audit quality with mitigating dysfunctional behavior. Understanding what causes dysfunctional audit behavior is critical for public accounting firms. The purposes of this study are to investigate the effects of organizational commitment on auditor acceptance of dysfunctional audit behavior through turnover intention and auditor performance. The Partial Least Square analysis was applied to a questionnaire survey data from 129 auditors working in public accounting firms in Sumatera Island (Indonesia). results indicate that auditors who are more accepting of dysfunctional audit behavior tend to possess an exhibit higher turnover intention, report lower level of auditor performance and weak organizational commitment. Further analysis found that turnover intention and auditor performance mediate the effect of organizational commitment on auditor acceptance of dysfunctional audit behavior.
2018
Public accounting firms are expected to increase audit quality with mitigating dysfunctional behavior. Understanding what causes dysfunctional audit behavior is critical for public accounting firms. The purposes of this study are to investigate the effects of organizational commitment on auditor acceptance of dysfunctional audit behavior through turnover intention and auditor performance. The Partial Least Square analysis was applied to a questionnaire survey data from 129 auditors working in public accounting firms in Sumatera Island (Indonesia). results indicate that auditors who are more accepting of dysfunctional audit behavior tend to possess an exhibit higher turnover intention, report lower level of auditor performance and weak organizational commitment. Further analysis found that turnover intention and auditor performance mediate the effect of organizational commitment on auditor acceptance of dysfunctional audit behavior.
Dysfunctional audit behavior (DAB) is associated with decreased audit quality (Public Oversight Board 2000). While recent studies suggest that dysfunctional audit behavior is a widespread problem (Smith 1995; Otley and Pierce 1995), extant research fails to adequately explain the causes or determinants of this form of deviant behavior. This study develops and tests a theoretical model that identifies locus of control, position, and organizational commitment as antecedents of attitudes toward DAB. Using a cross-organizational design and a path analysis technique, survey results from 113 auditors support the theoretical model.
Dysfunctional audit behaviour: an exploratory study in Malaysia
Asian Review of Accounting, 2010
Purpose The quality of the opinion provided by audit firms is an important determinant of their long-term survival, but audit quality is difficult to gauge, which makes it particularly sensitive to the behaviour of the individuals who carry on audit work. This study seeks to identify the incidence of Dysfunctional Audit Behaviours and Audit Quality Reduction Behaviours, actions taken by an auditor during engagement that reduce evidence-gathering effectiveness.
Does Dysfunctional Behavior Matter When it comes to Audit Quality in Malaysia
Audit quality is becoming a concern and a problematic issue due to corporate scandals in the business sector. The auditors were accused of incompetence and lack of independence in detecting fake financial reporting, which led to the company's failure. The dysfunctional auditors' behaviour has an impact on audit quality. As a result, this study aims to scientifically investigate and analyse the elements that may lead to dysfunctional auditor conduct and decreased audit quality. The factors addressed include time constraints, task complexity, and client importance on dysfunctional auditor behaviour and audit quality in the Malaysian setting. A total of 133 respondents were involved in this survey, selected by the snowball sampling method. The results reveal the propensity of individual auditors to accept dysfunctional behaviour due to time, budget pressure, and task complexity. Surprisingly, client importance does not impair auditors' independence. Auditors play an essential role in maintaining the quality of audit reports and restoring public trust in the audit profession since auditors are granted credibility to assure financial accounts. As a result, this paper has important implications. It provides valuable insight for Malaysian regulators and audit firms to identify factors influencing dysfunctional auditor behaviour and deterioration of audit quality and develop various approaches to address these issues while maintaining the value of an audit for external users.
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2020
The population in this study is Badan Pengawasan Keuangan dan Pembangunan (BPKP) of DKI Jakarta Province. Sampling is done by purposive sampling method with the criteria of government internal auditors who have taken study and training the JFA (Functional Auditor Functional) and has a minimum of 2 years work experience. The number of samples used in this study amounted to 62 samples of auditors working in Badan Pengawasan Keuangan dan Pembangunan (BPKP) of DKI Jakarta Province. The analysis technique used is Structural Equation Modeling (SEM) using the application Smart Partial Least Square version 3.0. The results of this study indicate that professional accounting ethics and integrity have a significant effect on audit quality. Auditor competency and professional commitment are not significant to audit quality. Professional commitment moderates the influence of the relationship between integrity and audit quality and influences the negative effect. Professional commitment does not moderate the effect of the relationship between auditor competence and audit quality. The contribution given to the BPKP of DKI Jakarta Province is that there is a need for an authoritative, orderly and wellregulated supervisory apparatus in carrying out the duties and functions of the government's internal auditors in accordance with the APIP code of ethics and APIP audit standards.
2018
Pressure of work, especially for an external auditor can lead to dysfunctional behavior. If dysfunctional behavior happen to employees, it could cause some damages to the company. This also applies to auditors who working in the public accounting firm. Auditors could have had dysfunctional behavior because of work or external factors as well as their own personal factors. Dysfunctional audit behavior may cause a decline in the quality of the audit results. Declining in the quality of audit result, can be harm for the user and other stakeholders. Based on that phenomenon, the aim of this study is to see whether there is influence of personal characteristic that consists of Intelligent Quotient (IQ), Emotion Quotient (EQ) and Spiritual Quotient (SQ) with the moderating role of organization commitment. The sample size is 100 respondents and data processed using Partial Least Squares (PLS). The results show that the personal characteristic does not affect on dysfunctional audit behavior...
2011 IEEE Symposium on Industrial Electronics and Applications, 2011
Dysfunctional Audit Behaviour (DAB) is an accepted problem, associated with decreased audit quality. This study develops and tests a theoretical model that identifies factors contributing to DAB. Budget emphasis, leadership behaviour structure and consideration, and effectiveness of audit review were examined as antecedents of attitudes toward DAB. A path analysis from a partial least square (PLS) approach was employed based on survey results from 225 Audit Managers in Malaysia. The findings produced consistent evidence in support of the theoretical model. It is not an emphasis on meeting budgets that leads to undesirable behaviour, but contextual variables, such as leadership behaviour structure and effectiveness of audit review. The study is confined to the auditing environment, and is subject to the normal limitations of survey based research. The results of the study should impact auditing procedures, hiring, training and promotion decisions, and help to minimise the occurrence and acceptance of DAB. The study was significant for the reason that there is an increased awareness by the Malaysian Institute of Accountants (MIA) as the policy makers and the Practice Review Committee (PRC) concerning the impairment of the audit quality and DAB resulting from the first PRC report.
Journal of Southwest Jiaotong University, 2021
This study examines the effect of audit quality, good corporate governance, and transformational leadership on auditor performance with organizational commitment and organizational culture as mediation in public accounting firms in Malang and Surabaya, East Java, Indonesia. This research model is quantitative with a population of 660 public accounting firms in Indonesia, with a sample of 150 active auditors in East Java. Data analysis techniques were performed with documentation from questionnaires and Structural Equation Modeling. The results found that audit quality, good corporate governance, and transformational leadership affect organizational commitment, organizational culture, and auditor performance. Organizational commitment and culture affect auditor performance. Audit quality, good corporate governance, and transformational leadership affect auditor performance through organizational commitment and organizational culture.
The Analysis of Reduced Audit Quality Behavior : The Intervening Role of Turnover Intention
International Journal of Economics and Management, 2016
Reduced audit quality behavior is an important issue for public accounting firms. Reduced audit quality behavior is a form of dysfunctional audit behavior that has a negative effect on users' confidence in financial statements. This study aims to examine the antecedents of turnover intention on reduced audit quality behavior. Specifically, this study investigates the effects of locus of control and organizational commitment on reduced audit quality behavior through turnover intention. Data is analyzed based on 97 responses from auditors who work for public accounting firms in Sumatera Island, Indonesia. The results from the PLS analysis reveal that the external locus of control, weak organizational commitment, and a high turnover intention lead to reduced audit quality behavior. In addition, the result also suggests that the effect of locus of control and organizational commitment on reduced audit quality behavior is indirectly influenced by turnover intention.