Dysfunctional Audit Behavior and Sign Off Premature Audit Procedures: Case Study of Jakarta Public Accounting Firm

Trinandari Prasetya Nugrahanti ,Nurfaidzah

doi:10.7176/rjfa/11-6-03

Abstract

This study aims to analyze the influence of factors that could result in high termination of audit procedures for premature signing and dysfunctional audit behavior on auditors working in public accounting firms. Factors considered include time pressure, locus of control and turnover intentions for terminating premature sign off audit procedures and how they affect the dysfunctional audit behavior of auditors working in the public accounting firms in Jakarta City Indonesia. Data obtained from the questionnaire to the external auditor were distributed to 85 respondents. The analysis technique uses path analysis with the SmartPLS program. The results showed that locus of control was positively related to premature signs of audit procedures while time pressure and turnover intention do not affect. Time pressure is positively related to dysfunctional audit behavior while locus of control, turnover intention and premature signs of audit procedures do not affect. The premature signing audit procedure cannot mediate between the effects of time pressure, locus of control and turnover intentions to dysfunctional audit behavior. The public accounting firm may evaluate the policies undertaken to overcome the possibility of premature discontinuation of audit procedures resulting in a distortion of auditor behavior to degrade audit quality. Keywords: Dysfunctional Audit Behavior, Premature Sign off Audit Procedures, Time Pressure, Locus of Control, Turnover Intention DOI: 10.7176/RJFA/11-6-03 Publication date: March 31 st 2020

Highlights

One of the services provided by the public accounting firm (KAP) is an attestation
Juliyanty Sidik Tjan (2019), state that turns over intention proves that it can mediate the influence of task complexity on dysfunctional audit behavior
The results that the hypothesis test indicated that the locus of control was positively related to the premature sign of audit procedures while the time pressure and turnover intention did not affect

Summary

Introduction

One of the services provided by the public accounting firm (KAP) is an attestation. The examination conducted by the finance ministry to the public accounting firm located in Jakarta with a sample of 38 KAP, the result shows that many violations against Standard Professional Public Accountants (SPAP). Based on the results of the examination conducted Financial Development Professional Center (PPPK). The SPAP violations committed include SA 326 on audit evidence, SA 311 on planning and supervisor, SA 333 on management representation and SA 230 on the use of professional proficiency meticulously and thoroughly in the performance of the auditor's work. The public accounting firm (KAP) which is subject to freezing sanction in 2014 is KAP Drs Dharma Surjadi Latief, MM with the frozen period for 3 months (pppk.kemenkeu.go.id, 2014)

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Conclusion