Moderation testing of dysfunctional audit behavior: internal auditor factors on audit quality

Yulianti Yulianti, Saifudin Saifudin, Ratna Novita Sari

Abstract


Research aims: The objective of this study is to examine the impact of auditor ethics, auditor professionalism, and dysfunctional audit behavior on the quality of audits, considering dysfunctional audit behavior as a potential moderating factor.
Design/Methodology/Approach: The research utilized a sample of auditors from public accounting firms across Java, employing convenience sampling through smartPLS 3 software, with a total of 256 auditors participating.
Research findings: The findings revealed that both auditor ethics and professionalism positively contribute to audit quality. In contrast, dysfunctional audit behavior shows no significant effect on audit quality, nor does it moderate the beneficial effects of auditor ethics and professionalism on audit quality. These results underscore the significance of auditor ethics and professionalism in enhancing the quality of financial report audits.
Theoretical contribution/ Originality: The research outlined herein seeks to explore the impact of auditor ethics and professionalism on audit quality, considering the potential moderating effect of dysfunctional audit behavior.
Practitioner/Policy implication: The study's implications are straightforward: Auditor ethics and professionalism are vital for the production of high-quality financial statement audits.
Research limitation/Implication: While dysfunctional audit behavior appears to have no significant effect, it remains crucial for public accounting firms to monitor such behaviors. As a result, there is a need for public accounting firms to prioritize ongoing professional education to uphold and reinforce the standards of ethics and professionalism among auditors.


Keywords


Audit Quality; Dysfunctional Audit Behavior; Ethics; Professionalism

Full Text:

PDF

References


Alsughayer, S. A. (2021). Impact of Auditor Competence, Integrity, and Ethics on Audit Quality in Saudi Arabia. Open Journal of Accounting, 10(04), 125–140. https://doi.org/10.4236/ojacct.2021.104011

Arens, Elder, R. J., Beasley, M. S., & Hogan, C. E. (2017). Summary of the Audit Process.

Asriningpuri, G. P., & Gruben, F. (2021). The Effect of Time Budget Pressure and Dysfunctional Auditor Behavior on Audit Quality: A Case Study in An Audit Firm in Indonesia. Diponegoro Journal of Accounting, 10(4), 1–12. https://ejournal3.undip.ac.id/index.php/accounting/article/view/32968

Astuty, W., Anindya, D. A., Ovami, D. C., & Pasaribu, F. (2022). The Impact of Due Professional Care, Time Budget Pressure and Dysfunctional Behavior on Audit Quality. Academy of Entrepreneurship Journal, 28(1), 2686.

Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173

Dewi, I. G. A. R. P., & Dewi, C. I. R. S. (2022). Factors Affecting Acceptance of Auditor’s Dysfunctional Behavior and Consequences on the Quality of Audit Results At Public Accounting Offices in Bali. International Journal of Social Science, 2(3), 1603–1616. https://doi.org/10.53625/ijss.v2i3.3624

Bryan, D. O., Quirin, J. J., & Donnelly, D. P. (2005). Locus of control and dysfunctional audit behavior. Journal of Business & Economics Research, 3(10), 9-14. 1399589de54ab9ac45eb340ec67ce09ea9f1-libre.pdf

Donnelly, D. P., Quirin, J. J., & O’Bryan, D. (2003a). Attitudes Toward Dysfunctional Audit Behavior: The Effects Of Locus Of Control, Organizational Commitment, and Position. Journal of Applied Business Research (JABR), 19(1). https://doi.org/10.19030/jabr.v19i1.2151

Donnelly, D. P., Quirin, J. J., & O’Bryan, D. (2003b). Auditor Acceptance of Dysfunctional Audit Behavior: An Explanatory Model Using Auditors’ Personal Characteristics. Behavioral Research in Accounting, 15(1), 87–110. https://doi.org/10.2308/bria.2003.15.1.87

Ghozali, I. (2021). Aplikasi Analisis Multivariate Dengan Program IBM SPSS 26 Edisi 10. Universitas Diponegoro.

Ghozali, I., & Latan, H. (2016). Partial Least Squares Konsep, Teknik dan Aplikasi Menggunakan SmartPLS 3.0. Universitas Diponegoro.

Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Evaluation of formative measurement models. Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook, 91-113. https://doi.org/10.1007/978-3-030-80519-7_5

Hair, J. F. J., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Neuromarketing in India: Understanding the Indian consumer. In Neuromarketing in India: Understanding the Indian Consumer (Seventh). Pearson Education Limited.

Hall, R. H. (1968). Professionalizattion and Bureaucratization. American Sociological Review, 33(1), 92–104.

Hamdani, R., Rahimah, I., & Hafiz, M. S. (2020). Exploring the Professionalism and Dysfunctional Behavior of Public Accountants on Audit Quality. Review of Integrative Business and Economics Research, 9(3), 9–19. https://buscompress.com/uploads/3/4/9/8/34980536/riber_9-s3_02_h19-096_9-19.pdf

Hau, N. Van, Hai, P. T., Diep, N. N., & Giang, H. H. (2023). Determining factors and the mediating effects of work stress to dysfunctional audit behaviors among Vietnamese auditors. Quality - Access to Success, 24(193), 164–175. https://doi.org/10.47750/QAS/24.193.18

IAI. (2020). Kode Etik Akuntan Indonesia Efektif 1 Juli 2020. http://www.iaiglobal.or.id/v03/files/file_berita/Kode Etik Akuntan Indonesia - 2020.pdf

Kartika, D., & Pramuka, B. A. (2019). The Influence of Competency, Independency, and Professionalism on Audit Quality. Journal of Accounting and Strategic Finance, 2(2), 157–169. https://doi.org/10.33005/jasf.v2i2.58

Lamba, R. A., Seralurin, Y. C., Lamba, A., & Pattiasina, V. (2020). The effect of auditor independence and ethics on auditor professional scepticism: Its implications for audit quality in Indonesia. International Journal of Innovation, Creativity and Change, 12(8), 383–396. https://www.ijicc.net/images/vol12/iss8/12838_Lamba_2020_E_R.pdf

Mardiati, D., & Pratiwi, K. J. (2019). Profesionalisme auditor terhadap kualitas audit. Jurnal Sekuritas, 2(3), 20–33. https://doi.org/10.32493/skt.v2i3.2763

Majidah, Isynuwardhana, D., & Anna, Y. D. (2016). Audit quality: time budget pressure, dysfunctional audit behavior and the understanding of information technology as moderator. The 7 Smart Collaboration for Business in Technology and Information Industries 2016. https://www.researchgate.net/publication/320683856

Meidawati, N., & Assidiqi, A. (2019). The influences of audit fees, competence, independence, auditor ethics, and time budget pressure on audit quality. Jurnal Akuntansi & Auditing Indonesia, 23(2), 117–128. https://doi.org/10.20885/jaai.vol23.iss2.art6

Nguyen, T. M. H., To, Y. N., & Nguyen, T. L. H. (2020). Auditing quality from perspective of auditing firms in Vietnam. Accounting, 6(5), 763–772. https://doi.org/10.5267/j.ac.2020.6.007

Noverini, C., Hutahaean, T. F., Gustylia, A., Veronica, A., & Gunawan, E. (2020). Effect of independence, professionalism and experience on audit quality. Journal of Business, Management, & Accounting, 2(2), 272–280. https://e-journal.stiekusumanegara.ac.id/index.php/jobma/article/view/148

Ong, T. S., Teh, B. H., Sim, G. K., Ng, S. H., & Hossan, M. I. (2022). Does Dysfunctional Behavior Matter When it Comes to Audit Quality in Malaysia? Asian Journal of Accounting and Governance, 12(17), 1–12. http://dx.doi.org/10.17576/AJAG-2022-17-01

Otley, D. T., & Pierce, B. J. (1996). Auditor time budget pressure: Consequences and antecedents. Accounting, Auditing & Accountability Journal, 9(1), 31–58. https://doi.org/10.1108/09513579610109969

Putu, I. K. S., Rasmini, N. K., Budiartha, I. K., & Widanaputra, A. A. G. P. (2020). The mediating effect of auditor dysfunctional behavior on machiavellian character and time budget pressure of audit quality. Accounting, 6(6), 1093–1102. https://doi.org/10.5267/j.ac.2020.7.009

Rivaldi, A., Aswar, K., Taufik, T., Andreas, A., & Hariyani, E. (2022). Factors Affecting Audit Quality: The Moderating Effect of Dysfunctional Behavior. Universal Journal of Accounting and Finance, 10(1), 358–366. https://doi.org/10.13189/ujaf.2022.100136

Rosliana. (2019). Pengaruh Akuntabilitas, Profesionalisme Auditor Dan Etika Auditor Terhadap Kualitas Audit Pada Kantor Akuntan Publik Di Pekanbaru. Jurnal Akuntansi Dan Keuangan, 8(1), 63–78. https://ejournal.unisi.ac.id/index.php/jak/article/view/712

Saeed, A. M. M., Widyaningsih, A., & Arief, M. (2023). Does Gender Affect Audit Quality : A Literature Review. International Journal Management Science and Business, 5(1), 29–36. https://ejournal.upi.edu/index.php/msb/article/view/59862/23210

Suryaningsih, E., & Khabibah, N. A. (2022). Peran etika auditor, pengalaman auditor, kompetensi auditor dan perilaku audit disfungsional terhadap kualitas audit. Journal of Educational and Language Research, 1(6), 631–636. https://doi.org/10.53625/joel.v1i6.1223

Tianingsih, P., Rustiana, S. H., & Sarwoko, H. (2022). Pengaruh Kompetensi, Independensi Dan Perilaku Disfungsional Auditor Terhadap Kualitas Audit Di Moderasi Oleh Religiusitas. JEMBA : Jurnal Ekonomi Pembangunan, Manajemen Dan Bisnis, Akuntansi, 2(1), 40–52. https://doi.org/10.52300/jemba.v2i1.3362

Untari, P. H. (2023). Ini Daftar Hitam AP dan KAP dari OJK & Menkeu! Partner Crowe, EY hingga Deloitte. Finansial.Bisnis.Com. https://finansial.bisnis.com/read/20230228/215/1632435/ini-daftar-hitam-ap-dan-kap-dari-ojk-menkeu-partner-crowe-ey-hingga-deloitte

Watkins, A. L., Hillison, W., & Morecroft, S. E. (2004). Audit quality: A synthesis of theory and empirical evidence. Journal of Accounting Literature, 23, 153–193. http://dx.doi.org/10.1016/j.jaci.2012.05.050

Yulianti, Chandrarin, G., & Supanto, F. (2022). Effect of ethics and professionalism on audit quality: A moderating role of dysfunctional audit behavior. Problems and Perspectives in Management, 20(3), 529–539. https://doi.org/10.21511/ppm.20(3).2022.42

Yuniarti, R. (2012). The effect of tenure audit and dysfunctional behavior on audit quality. International Conference of Economics, Business and Marketing Management, 29, 18–22.




DOI: https://doi.org/10.18196/jai.v25i3.21944

Refbacks

  • There are currently no refbacks.




Office:
Ruang Jurnal Fakultas Ekonomi dan Bisnis UMY
Gedung Ki Bagus Hadikusuma (E4) Lantai 2, Kampus Terpadu Universitas Muhammadiyah Yogyakarta,
Jalan Brawijaya (Lingkar Selatan), Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia, 55183
Website: journal.umy.ac.id/index.php/ai - E-mail: jai@umy.ac.id

Journal of Accounting and Investment is licensed under Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License

View My Stats