Analysis of the Influence of Role Stress on Reduced Audit Quality

Angela Isabel Elinda, Sri Iswati, Pikar Setiawan

doi:10.24912/ja.v23i2.593

Abstract

Reduced Audit Quality is an act of decreasing audit quality that is considered to be a deliberate practice because it reduces the quality of audit work and thereby increasing the possibility of opinion on inappropriate financial statements. Factors affecting reduced audit quality actions arise due to the presence of role conflict, role ambiguity and role overload. This study was conducted to find out the effect of role conflict, role ambiguity, and role overload on reduced audit quality. The sampling was conducted using purposive sampling technique. The number of samples obtained was 44 samples. Data were collected using a questionnaire method via Google Forms on auditors working at public accounting firms in the city of Surabaya and Sidoarjo. Data analysis technique used for hypothesis testing was multiple linear regression analysis. The results of hypothesis testing show that role conflict and role ambiguity have no significant effect on reduced audit quality, but role overload has a significant effect on reduced audit quality.

Highlights

Audit quality can be seen when auditors carry out audit procedures in accordance with audit standards and provide an appropriate opinion on the company's financial statements
Based on the background above, the problem in this study is “Do role conflict, role ambiguity, and role overload have an effect on reduced audit quality?” The purpose of this study is to find out and obtain empirical evidence about the effect of role conflict, role ambiguity, and role overload on reduced audit quality
In accordance with the test results in this study, it can be concluded that role conflict has no significant effect on reduced audit quality

Summary

Introduction

Audit quality can be seen when auditors carry out audit procedures in accordance with audit standards and provide an appropriate opinion on the company's financial statements. Independent auditors are required to produce qualified audit in accordance with audit standards and not to perform dysfunctional behavior because the independent auditors are the guarantors in the company's business. Independent auditors play a role as guarantor for the company's business activities (Smith and Emerson, 2017) because they are an independent party trusted by investors when investors want to invest their capital in these companies. The opinion given by independent auditors can improve or decrease the quality of the credibility of the company's financial statements, because it provides information on the company's current condition. Independent auditors are required to carry out audit procedures in accordance with audit standards and not to perform dysfunctional behavior. Dysfunctional behavior conducted by an independent auditor can be in the Jurnal Akuntansi/Volume XXIII, No 02 May 2019: 301-315

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