Audit Quality: Does Time Pressure Influence Independence and Audit Procedure Compliance of Auditor?

Firda Ayu Amalia, Sutrisno Sutrisno, Zaki Baridwan

Abstract


This research was aimed to empirically examine the effect of independence and audit procedure on audit quality with time budget pressure as moderator variable. The population comprised auditors working on Public Accountant Office (KAP) in East Java, while the samples consisted of 45 respondents. This study used a survey technique is by questionnaire as data collection techniques. The PLS was used for data analysis. The result showed that the independence and audit procedure positively affected the audit quality. The variable of time budget pressure as moderator was capable to enfeeble the relation between the independence and audit quality, and also to reinforce the relation between audit procedure and audit quality. The results of this study have provided support for Agency theory. A quality audit can reduce information asymmetry so as to minimize moral hazard actions by management.

Keywords


independence; audit procedure; time pressure; audit quality

Full Text:

Download Article

References


AICPA. (2014). Error Corrections: Accounting and Reporting Issues. Retrieved from https://www.aicpa.org/search.html?source=AICPA&q=Auditor+is+responsible+for+planning+and+carrying+out+audits+to+obtain+sufficient+confidence+whether+the+financial+statements+are+free+from+material+errors+and+whether+there+are+intentional+or+not+errors+in+2002

Pusat Pembinaan Profesi Keuangan Sekretariat Jenderal – Kementrian Keuangan. Akuntan Publik yang Dikenakan Sanki Pembekuan Izin. Retrieved from http://pppk.kemenkeu.go.id/Publikasi/Index/11

Amrulloh, A., & Putra, Y. H. S. (2014). Pengaruh Independensi Dan Pengalaman Auditor Terhadap Kualitas Audit Pada Kantor Akuntan Publik. El Muhasaba: Jurnal Akuntansi, 5(2), 240-258. https://doi.org/10.18860/em.v5i2.2862

Andreas. (2016). Intercation between Time Budget Pressure and Professional Commitment toward Underreporting and Time Behaviour. Procedia - Social and Behavioral Sciences, 219, 91-98. https://doi.org/10.1016/j.sbspro.2016.04.047

Ashari, H. (2017). Mitra Ernst & Young Indonesia didenda US$ 1 juta. Kontan. Retrieved from https://nasional.kontan.co.id/news/mitra-ernst-young-indonesia-didenda-us-1-juta

Bachroni, M., & Asnawi, S. (1999). Stres kerja. Buletin Psikologi, 7(2).

Beattie, V., Brandt, R., & Fearnley, S. (1999). Perceptions of auditor independence: UK evidence. Journal of international accounting, auditing and taxation, 8(1), 67-107. https://doi.org/10.1016/s1061-9518(99)00005-1

Broadhurst, P. (1959). The interaction of task difficulty and motivation: The Yerkes Dodson law revived. Acta Psychologica, 16, 321-338. https://doi.org/10.1016/0001-6918(59)90105-2

Carpenter, T. D. (2007). Audit team brainstorming, fraud risk identification, and fraud risk assessment: Implications of SAS No. 99. The Accounting Review, 82(5), 1119-1140. https://doi.org/10.2308/accr.2007.82.5.1119

Coram, P., Ng, J., & Woodliff, D. R. (2004). The effect of risk of misstatement on the propensity to commit reduced audit quality acts under time budget pressure. Auditing: A Journal of Practice & Theory, 23(2), 159-167. https://doi.org/10.2308/aud.2004.23.2.159

DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of accounting and economics, 3(3), 183-199. https://doi.org/10.1016/0165-4101(81)90002-1

Garcia-Blandon, J., & Argiles, J. M. (2015). Audit firm tenure and independence: A comprehensive investigation of audit qualifications in Spain. Journal of international accounting, auditing and taxation, 24, 82-93. https://doi.org/10.1016/j.intaccaudtax.2015.02.001

Gasperz, J. (2014). Pengaruh Tekanan Anggaran Waktu Sebagai Variabel Moderasi terhadap Hubungan antara Faktor Individu dan Kualitas Audit. Dinamika Akuntansi, Keuangan dan Perbankan, 3, 33-45.

Halim, A. (2014). Anggaran Waktu Audit dan Komitmen Profesional Sebagai Variabel Moderasi Pengaruh Kompetensi dan Independensi Auditor Terhadap Kualitas Audit. Paper was presented at Simposium Nasional Akuntansi XVII, Mataram.

IAPI. (2016). Draf Panduan Indikator Kualitas Audit oada Kantor Akuntan Publik. Jakarta Retrieved from http://iapi.or.id/uploads/article/exposure-draft-panduan-indikator-kualitas-audit-5804a2d00298b.pdf.

Isrowiyah, A. (2011). Pengaruh Locus of Control dan Dimensi Komitmen Profesional terhadap Perilaku Audit Disfungsional dengan Tekanan Anggaran Waktu yang Dirasakan sebagai Variabel Intervening.(Studi Empiris pada Auditor. Thesis, Universitas Brawijaya.

Jogiyanto, H., & Abdillah, W. (2009). Konsep dan aplikasi PLS (Partial Least Square) untuk penelitian empiris. Yogyakarta: BPFE.

Jum’ati, N., & Wuswa, H. (2013). Stres Kerja (Occupational Stres) yang Mempengaruhi Kinerja Individu pada Dinas Kesehatan Bidang Pencegahan Pemberantasan Penyakit dan Penyehatan Lingkungan (P2P-PL) di Kabupaten Bangkalan. Neo-Bis, 7(2), 195-211.

Kassem, R., & Higson, A. (2012). Financial reporting fraud: are standards' setters and external auditors doing enough?. International Journal of Business and Social Science, 3(19), 283-290. https://doi.org/10.11634/21679606170646

Koroy, T. R. (2009). Pendeteksian Kecurangan (Fraud) Laporan Keuangan oleh Auditor Eksternal. Jurnal Akuntansi dan Keuangan, 10(1), 22-23.

Margheim, L., Kelley, T., & Pattison, D. (2005). An empirical analysis of the effects of auditor time budget pressure and time deadline pressure. The Journal of Applied Business Research, 21(1), 23-36. https://doi.org/10.19030/jabr.v21i1.1497

McNamara, S. M., & Liyanarachchi, G. A. (2008). Time budget pressure and auditor dysfunctional behaviour within an occupational stress model. Accountancy Business and the Public Interest, 7(1), 1-43.

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

Pierce, B., & Sweeney, B. (2004). Cost–quality conflict in audit firms: an empirical investigation. European Accounting Review, 13(3), 415-441. https://doi.org/10.1080/0963818042000216794

Pradipta, G. K., & Budiartha, I. K. (2016). Tekanan Anggaran Waktu Sebagai Pemoderasi Pengaruh Profesionalisme Dan Pengalaman Audit Pada Kualitas Audit. E-Jurnal Akuntansi, 1740-1766.

Priantara, D. (2017). Sudah Ada Auditor, Kenapa Terjadi Fraud? Warta Ekonomi. Retrieved from https://www.wartaekonomi.co.id/read144260/sudah-ada-auditor-kenapa-terjadi-fraud.html

Rahmina, L. Y., & Agoes, S. (2014). Influence of auditor independence, audit tenure, and audit fee on audit quality of members of capital market accountant forum in Indonesia. Procedia-Social and Behavioral Sciences, 164, 324-331. https://doi.org/10.1016/j.sbspro.2014.11.083

Sarwoko, I. (2014). Pengaruh Ukuran Kap Dan Masa Perikatan Audit Terhadap Penerapan Prosedur Audit Untuk Mendeteksi Risiko Kecurangan Dalam Laporan Keuangan, Serta Implikasinya Terhadap Kualitas Audit (Survei Pada Kantor Akuntan Publik Anggota Forum Akuntan Pasar Modal). Jurnal Akuntansi, 18(1).

Sarwoko, I., & Agoes, S. (2014). An empirical analysis of auditor's industry specialization, auditor's independence and audit procedures on audit quality: evidence from indonesia. Procedia-Social and Behavioral Sciences, 164, 271-281. https://doi.org/10.1016/j.sbspro.2014.11.077

Septriani, Y. (2012). Pengaruh Independensi Dan Kompetensi Auditor Terhadap Kualitas Audit, Studi Kasus Auditor Kap Di Sumatera Barat. Jurnal Akuntansi & Manajemen, 7(2), 78-100.

Shapeero, M., Chye Koh, H., & Killough, L. N. (2003). Underreporting and premature sign-off in public accounting. Managerial auditing journal, 18(6/7), 478-489.

Sholihin, M., & Ratmono, D. (2013). Analisis SEM-PLS dengan WarpPLS 3.0 untuk Hubungan Nonlinier dalam Penelitian Sosial dan Bisnis. Yogyakarta: Penerbit Andi.

Simanjuntak, P. (2008). Pengaruh Time Budget Pressure Dan Resiko Kesalahan Terhadap Penurunan Kualitas Audit (Reduced Audit Qaulity)(Studi Empiris Pada Auditor Kap Di Jakarta). Thesis, Universitas Diponegoro.

Soobaroyen, T., & Chengabroyan, C. (2006). Auditors' Perceptions of Time Budget Pressure, Premature Sign Offs and Under‐Reporting of Chargeable Time: Evidence from a Developing Country. International Journal of Auditing, 10(3), 201-218. https://doi.org/10.1111/j.1099-1123.2006.0350.x

Sudarna, M., & Ludigdo, U. (2014). Pengaruh Kompetensi, Independensi Dan Ukuran Auditee Terhadap Kualitas Audit. El Muhasaba: Jurnal Akuntansi, 5(2), 226-239. https://doi.org/10.18860/em.v5i2.2861

Tepalagul, N., & Lin, L. (2015). Auditor independence and audit quality: A literature review. Journal of Accounting, Auditing & Finance, 30(1), 101-121. https://doi.org/10.1177/0148558x14544505

Trongmateerut, P. (2011). The Impact of Assessment Procedures and Need for Cognition on Fraud Risk Assessments. Retrieved from https://research.libraries.wsu.edu/xmlui/handle/2376/2847

Umar, A., & Anandarajan, A. (2004). Dimensions of pressures faced by auditors and its impact on auditors’ independence: a comparative study of the USA and Australia. Managerial auditing journal, 19(1), 99-116. https://doi.org/10.1108/02686900410509848

Wijono, S. (2010). Psikologi industri dan organisasi: dalam suatu bidang gerak psikologi sumber daya manusia. Jakarta: Kencana.

Zakaria, N. B., Yahya, N., & Salleh, K. (2013). Dysfunctional Behavior among Auditors: The Application of Occupational Theory. Journal of Basic and Applied Scientific Research, 3(9), 495-503.




DOI: https://doi.org/10.18196/jai.2001112

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