Auditors’ Behavioral Intention Towards Dysfunctional Audit Behavior Applying Theory of Reasoned Action (original) (raw)
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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.
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Dysfunctional auditor behavior becomes a driving variable for audit quality when an auditor has good ethics and professionalism. This study examines whether the ethics and professionalism of auditors can affect audit quality; dysfunctional audit behavior is used as a moderating variable. The study sample includes 348 auditors employed at public accounting companies throughout Indonesia and enlisted by the Indonesian Institute of Certified Public Accountants Directory. This paper used the SEM approach with WarpPLS software to analyze the respective data. Thus, it was found that auditors’ ethics and professionalism significantly and positively influence audit quality.Meanwhile, dysfunctional audit behavior significantly moderated the relationship between professionalism and audit quality. In contrast, this behavior was not a moderating variable for auditors’ ethics and audit quality association. An interesting finding is the indicators of auditors’ ethical behavior in accepting audit ...
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Rapid business competition causes companies to improve the quality of products and services produced. In addition to improving the quality of its output, companies also need the services of a reliable auditor to examine financial statements so that they can be trusted with fairness. However, there is a phenomenon that the Public Accountant has not fully obtained sufficient and appropriate audit evidence and has not fully complied with the professional code of ethics in accepting and carrying out audit engagements. The purpose of this study is to find empirical evidence about the effect of audit evidence and enforcement of the code of ethics on audit quality, and to know the impact simultaneously, as well as partially. The research sample was taken using a purposive sampling technique that is as many as 54 public accountants in the city of Bandung, West Java-Indonesia. The statistical method used to test the hypothesis is multiple regression. The results of this study by using the test of the coefficient of determination obtained the value of the coefficient of determination or R-square of 23.8%, which shows the variable that the audit evidence and ethics code enforcement variables simultaneously influence the audit quality variable. Furthermore, a partial test of audit evidence has a significant positive effect on audit quality, but the enforcement of a code of ethics does not affect audit quality.