Abstract
This research examines whether time budget pressure affect professional scepticism and if so, whether the affect is mediated by auditor independency. A web-based survey is used in deploying and delivering questionnaires to 163 auditors from big four and non-big four in Jakarta. The result shows that auditor independency (AI) is partially mediated the relationship between time budget pressure (TBP) and professional scepticism (PS). Which means, external auditor in Jakarta who experiencing high time pressure will tend to decrease their independency and resulted a low scepticism. Seeing this result, this study suggests by increasing number of audit team member, set the number of minimum supporting evidence and having supervisor to monitor auditor’s job, will help to minimize the negative effect of time pressure.
Highlights
A financial statement is crucial information that presents the condition of a business
This study examines the impact of time budget pressure (TBP) on professional skepticism (PS) and auditor independence as the mediator
The hypothesis statements have been verified with Structural Equation Modelling-Partial Least Square (SEM-Partial Least Squares (PLS))
Summary
A financial statement is crucial information that presents the condition of a business. Through this information, shareholders will be able to know the performance of a company and see its appropriateness. To plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud‖ [1] [41]. In doing their responsibility, it is crucial for auditors to maintain their professionalism. Some rules and regulations are already settled to maintain audit quality and protect shareholders, such as the ISA (International Standard Auditing) and GAAS (Generally Accepted Auditing Standard)
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