Auditor Behavior Research Articles

PENGARUH LOCUS OF CONTROL, KOMITMEN PROFESI, BUDAYA ORGANISASI, KEPUASAN KERJA, SISTEM KOMPENSASI SERTA SIKAP INDEPENDENSI TERHADAP PERILAKU AUDITOR DALAM MENGHADAPI KONFLIK AUDIT Studi pada Auditor yang Bekerja di KAP Daerah Istimewa Yogyakarta dan Surakarta

This research aims to determine effect of locus of control, profession commitment, organization cultural, job satisfaction, compensation system and independence attitude for auditor behavior in face on audit conflict. The analysis based on the answer of respondents who available through of questionnaire that distribute by Yogyakarta and Surakarta Public Accountant Office. Population from the auditor research who work in the Public Accountant Office were in Yogyakarta and Surakarta. The research using the purposive sampling method. Sample taken from auditor who minimal has worked during 2 years. Cronbach Alpha used to test reliability data and testdata isused kolmogorov_Smirnovnormality. Hypothesis tested by multiple regression. Result from the research revealed that there are locus of control effect, profession commitment, organization cultural, job satisfaction, compensation system, independence attitude for auditor behavior in face on audit conflict.

PROFESSIONAL COMMITMENT AND AUDITOR EXPERIENCES ON AUDITORS’S BEHAVIOR IN AN AUDIT CONFLICT SITUATION AND IMPACT ON THE IMPLEMENTATION OF AUDITORS PROFESSION ETHICS

This study attempts to assess the impact of professional commitment, experience of the audit, the auditors behavior conflict and ethicts audit profession senior auditors on the auditors and colleagues who worked on the public accountant in Bandung. The research population auditors who worked on the public accountant in Bandung, a total of 24 samples Obtained by purposive sampling method. The research using analysis lane. The results of the testing of hypotheses shows that the commitment of professional and experience the audit for the application of auditors of ethical behavior, professional and audit experience the audit for the application of auditors ethical behavior of professionals through auditors the audit of conflict Obtained by the determination of the 73, 8%. Testing professional commitment and auditing experience is a significant relation. To Significantly Affect not commit professional auditors to conduct the audit of conflict. Experience of audit there are significant impact on the behavior of auditors auditing conflict. For testing of professional commitment, there are significant impact on the audit professional ethics. Experience of audit there are significant impact on the audit professional ethics. Behavior auditors and the audit there are significant impact on the application of professional ethics of auditors.

Peran Moral Reasoning dan Skeptisisme Profesional Memoderasi Role Stress Terhadap Perilaku Disfungsional Internal Auditor

Dysfunctional behavior of the auditor should be avoided to produce quality audit findings based on the fairness of a financial statement. The purpose of this study is to analyze the role of moral reasoning and professional skepticism moderating role stress on dysfunctional behavior of auditors. 
 This research was conducted in all branch offices of PT Bank BRI Bali-Nusra Area as many as 29 offices by making the auditor as many as 107 people as sample with saturated sample method in test through regression analysis moderation technique (MRA).
 Based on the results of the analysis, role stress variables have a role in increasing dysfunctional behavior of auditors. Moral reasoning has a role in increasing dysfunctional behavior of auditors. Professional skepticism has a role in increasing dysfunctional behavior of auditors. Moral reasoning and Professional skepticism can strengthen the influence of role stress in increasing dysfunctional behavior of auditors. 
 Keywords: role stress, moral reasoning, professional skepticism, auditor dysfunctional behavior

The Importance of Reputation in the Auditing of Companies: A Game Theory Analysis

Numerous, mainly empirical, studies of auditing behaviour have recently looked at the “reputation” of the auditor and the size of fees it attracts. Our model of the auditing market advances the study of the fundamental principles involved in determining behaviour in relation to the rewards and penalties using an extensive-form game of the auditing process. We set up a two-player fraud detection game with bribes, bonuses and fines faced by an auditor. Our model yields that the auditor’s reputation, reflected in the size of bonuses, is critical to establishing a non-fraudulent behaviour by the client. Hence the model confirms expected behaviour. We further find the new insight, that while the existence of penalties deters fraud by the client, their size is not critical. This is a new understanding of what determines auditor behaviour. It is the perception of a possible penalty that moves the auditor in the direction of executing a thorough investigation using his acquired expertise.

PENGARUH TEKANAN ANGGARAN WAKTU, LOCUS OF CONTROL, KOMITMEN ORGANISASI DAN KINERJA AUDITOR TERHADAP PERILAKU DISFUNGSIONAL AUDITOR (STUDI EMPIRIS PADA AUDITOR KANTOR AKUNTAN PUBLIK DI JAKARTA PUSAT DAN JAKARTA SELATAN)

The purpose of this study was to examine the effect of time budget pressure,the locus of control, organizational commitment, and performance auditor of auditor dysfunctional behaviors (an empirical study in public accountant firm in Central Jakarta and South Jakarta). This research used primary data collected directly from respondents. Method of determining the sample in this research was purposive sampling technique based on the consideration. Population in this researchwas the auditors who work at public accountant firm in Central Jakarta and South Jakarta.The sample in this research used 50 auditors who worked at public accountant firms registered at Institut Akuntan Publik Indonesia (IAPI) Jakarta 2017. This study tested using data quality, classic assumptiontest and linear regression analysis using SPSS for windows 23. The results of this study showed that the time budget pressure was significantly positive effect toward dysfunctional audit behavior while the locus of control was positive effect unsignificantly to dysfunctional audit behavior. And variable of organizational commitment and performance auditor were significantly negative effect to dysfunctional audit behavior.

Determinants of ethical work behaviour of Malaysian public sector auditors

PurposeThe purpose of this paper is to investigate factors affecting ethical work behaviour among Malaysian public sector auditors. Based on Hunt and Vitell model, there are four research objectives for this study: to investigate the influence of ethical climate on public sector auditors ethical work behaviour; to examine the effect of professional commitment on ethical work behaviour of public sector auditors; to investigate the effect of corporate ethical values (CEV) on ethical work behaviour of public sector auditors; and to examine the effect of ethical ideology on ethical work behaviour of public sector auditors.Design/methodology/approachThe respondents of the study were public sector auditors of National Audit Department in Malaysia. Using a survey questionnaire comprising instruments about the ethical climate, CEV, professional commitment, ethical ideology and organisational misbehaviour, a total of 382 were received and usable. In achieving the research objectives, multiple regressions were performed.FindingsThe results reveal that ethical work behaviour among public sector auditors in Malaysia is influenced by law and independence ethical climate, professional commitment, CEV and both idealism and relativism ethical ideology.Originality/valueThe present study provides new additional empirical evidence on determinants of ethical work behaviour of auditors in public sector from a developing economy (i.e. Malaysia) which is currently limited.

A Discussion of the Individual Auditor Who Have Been Punished and Audit Quality

<p><em>High quality independent audit can enhance the reliability of financial statement information, reduce the cost of principal-agent and improve the efficiency of market resource allocation. In China, the audit report should be signed and sealed by </em><em>auditor</em><em>. This means that audit liability can be traced directly to signed </em><em>auditor</em><em> individuals</em><em>, it is even more important to carry out the research on individual audit behavior and audit quality of signed auditor. The research contribution of this paper is to expand the relevant research on auditor discipline, and to deduce from “prior research” through theory. It is found that the low-quality audit behavior is a special case caused by the chartered accountant</em><em>’</em><em>s personal characteristics.</em></p>

Whatts in a Name? The Impact of U.S. Audit Partner Identification on Going Concern Audit Report Modifications

After a lengthy and protracted debate, the Public Company Accounting Oversight Board (PCAOB) adopted new rules and related amendments to its auditing standards regarding the engagement partner and other accounting firms that took part in the audit (PCAOB 2015). The rules require disclosure of the engagement partner’s name and information about other accounting firms on new PCAOB Form AP, Auditor Reporting of Certain Audit Participants. We investigate the impact of this regulation on auditor behavior in the context of the auditor’s going concern report modification propensity. Consistent with a perceived increase in litigation risk, we document an increase in the propensity to issue a going concern report modification in the disclosure regime. Our results are sensitive to auditor type. Specifically, only Big Four auditors exhibit an increase in the going concern modification rate. Our evidence is consistent with Big Four audit partners believing that audit partner identification exposes them to higher litigation risk.

Locus of Control, Penerimaan Auditor atas Dysfunctional Audit Behavior dan Intention to Quit

This study aims to examine personal characteristics of auditor acceptance of dysfunctional audit behavior. More specifically, it aims to investigate locus of control on intention to quit and auditor acceptance of dysfunctional audit behavior. This study surveys public accounting firm in Sumatera with a total of107 respondents. Data analysis was performed by using Structural Equation Modeling-Partial Least Square (PLS-SEM). The results show that locus of control has positive influence on intention to quit and auditor acceptance of dysfunctional audit behavior. In addition, it is also suggested that the effect of locus of control on auditor acceptance of dysfunctional audit behavior is indirectly influenced through intention to quit.

Antecedent Factors on an Auditors' Attitude Towards Conducting an Intended Qualified Audit

Objective - This study proposes to investigate an auditor's works by usingthe model on the Theory of Reasoned Action (TRA), with the inducement of intervention by a supervisor, that influences an auditor's aattitudes. The study uses the TRA proposed by Fishben and Ajzen (1975) to predict and explain the behaviors of Indonesian auditors. The results reveal those factors influencing an auditor's intention to provide qualified and reliable audit reports. Methodology/Technique - The study focuses on audit implementation in the public sector, specifically the auditing of financial statements in regional administrations. The study examined a total of 53 governmental auditors from the Audit Board of the Indonesian Republic (BPK-RI). A Structural Equation Model (SEM) was used for the analysis. Findings - The results of the study show that perceived audit risk, moral norms, and incentives have a positive and statistically significant impact on an auditor's attitude when performing an audit. Meanwhile, intervention by a supervisor has a negative impact, and is not statistically significant towards the auditor's attitude and behavior. This means that the auditor's attitude and behavior implies that there is no intervention from their supervisor when performing an audit. Furthermore, an auditor's attitude influences their intention to perform qualified and credible audits. Novelty - This study infers that The Indonesian Republic Decree No. 188 of the Year 2014 regarding Personel Performance Benefit in the Audit Boards of Indonesia Republic (BPK-RI) is achieving its intended purpose. Type of Paper - Empirical Keywords: Auditor; Attitude; Risk Perception; Audit Reports. JEL Classification: M40, M42.

Publicity and Auditor Behavior: The Case of Hurun Rich List in China

Adverse client publicity can entail regulatory scrutiny over audited financial statements and impose political costs on auditors. We use the changes in client publicity caused by their controlling owners’ presence on the Hurun Rich List (the rich listing) in China to test the hypothesis that auditor conservatism increases with client publicity. Our evidence indicates auditors issue more adverse audit opinions to clients and charge higher fees following the rich listing events. Moreover, we observe that auditors strategically respond to clients with different attributes — for clients whose owners accumulated wealth in a more questionable manner, auditors choose more stringent audit reporting to better defend themselves from regulatory scrutiny; for clients without such attributes, auditors primarily rely on increasing audit fees to cope with any post‐listing increase in audit risks. Our analyses also suggest the impacts of rich listings tend to be concentrated among large audit firms with stronger reputation concerns or among engagement auditors with more conservative reporting styles. By showing how auditors manage political risks associated with heightened public scrutiny, we contribute to both the auditing and political cost literature.

The government whistleblowers in generating audit quality (a survey on provincial audit boards in South, Central, and West Sulawesi, Indonesia)

PurposeThe aim of this paper is to investigate the mediation effect of whistleblower in relationship between auditor’s ethic, auditor’s commitment and auditor’s independence to audit quality – a survey on provincial audit boards in South, Central and West Sulawesi, Indonesia.Design/methodology/approachThe population in this research were auditors of audit board, amounting to 249 people, distributed in three provinces, namely, South Sulawesi, Central Sulawesi and West Sulawesi, using purposive sampling. The method used for analyzing the data in this research is structural equation modeling with auxiliary program analysis of moment structural version 20.FindingsThe main finding of this research is that the whistleblower is not the mediation variable of the relationship between auditor’s ethic, auditor’s commitment and auditor’s independence to audit quality. However, it does not mean that auditors will be whistleblowers who will disclose all cases into the public domain. Facts on the field are that Badan Pemeriksa Keuangan Republik (BPK) or The Audit Board of the Republic of Indonesia auditors do not become whistleblowers due to unsupportive atmosphere and less response from superiors. The results support the agency theory. This research supports the agency theory because of the fact in the field that BPK auditors are not committed to be whistleblowers. Meanwhile, there is positive effect of commitment to audit quality. This research supports stewardship theory and setting theory, as BPK auditors are already committed to the organization and demonstrate high levels of participation in the organization and stronger willingness to keep working and contribute to achievement of better audit. The BPK auditors maintain their independence in the inspection, but for them to be whistleblowers to reveal findings to the public is not allowed by their superiors. The research results support the agency theory.Research limitations/implicationsWhistleblower needs special attention in BPK, as it is proven that whistleblowing system has not been implemented, and support is needed from superiors and the agencies concerned if one of the auditors in carrying out their auditing tasks turn out to be a whistleblower due to their conscience. Although whistleblower is not regulated in Inspection Standard Statement, Regulation No. 01 of 2007 on Standards of State Audit (SKPN) of BPK, BPK should accommodate the application of the whistleblowing system, such as that adopted by institutions under the Ministry of Finance (Tax Office); hence, the existence of independent auditor profession regains public trust, something that has been dropped for all this time due to many cases involving independent auditors in business sector or the government sector. The government should provide a strong legal protection to ensure the protection to whistleblowers, as the existing legislation is still general in characteristics, as outlined in Law No. 13 of 2006 on Protection of Witnesses and Victims. Furthermore, the researchers should use qualitative research to study the behavior of the government auditors; why some areas receive Wajar Tanpa Pengecualian (WTP) or unqualified opinion predicate but are coupled by a tremendous increase in corruption; and whether BPK auditors have become whistleblowers in disclosing the actual facts.Practical implicationsWhistleblower need special attention in BPK as it is proven that whistleblowing system has not been implemented, and support is needed from superiors and the agencies concerned if one of the auditors in carrying out their auditing tasks turn out to be a whistleblower due to their conscience. Although whistleblower is not regulated in Inspection Standard Statement, Regulation No. 01 of 2007 on Standards of State Audit (SKPN) of BPK, BPK should accommodate the application of the whistleblowing system, such as that adopted by institutions under the Ministry of Finance (Tax Office), hence the existence of independent auditor profession regain public trust, something that has been dropped for all this time due to many cases involving independent auditors in business sector or the government sector. The government should provide a strong legal protection to ensure the protection to whistleblowers, as the existing legislation is still general in characteristics, as outlined in Law No. 13 of 2006 on Protection of Witnesses and Victims. Furthermore, the researchers should use qualitative research to study the behavior of the government auditors; why some areas receive WTP predicate but are coupled by a tremendous increase in corruption; and whether BPK auditors have become whistleblowers in disclosing the actual facts.Social implicationsThe government needs to provide a strong legal framework to ensure the protection of whistleblowers, because the existing legislation is still general as outlined in the Act – Act No. 13 of 2006 on the Protection of Witnesses and Victims.Originality/valueThe originality of this research is using the government whistleblower as the mediation variable in relationship between auditor’s ethics, auditor’s commitment and auditor’s independence on audit quality, with the object being auditor in South Sulawesi, Central Sulawesi and West Sulawesi, Indonesia.

The Effect of Locus of Control, Time Budget Pressure, and Professional Commitment on Dysfunctional Audit Behaviour

This study aims to determine the effect of locus of control, time budget pressure, and professional commitment on dysfunctional audit behaviour. The data used in this research is the primary data. Data was collected by using a survey method by distributing questionnaires to the auditors of Representative Supreme Audit Board in South Sulawesi Province. The method of analysis that was used to test the hypothesis is multiple linear regression with software Statistical Package for Social Science (SPSS) version 23. The analysis is based on data from 55 respondents who have completed all the statements and questionnaires. The results of this study show that (1) external locus of control and time budget pressure has a positive effect on dysfunctional audit behaviour and (2) professional commitment has a negative effect on dysfunctional audit behaviour.

How Do Risk-Based Inspections Impact Auditor Behavior? Experimental Evidence on the PCAOB's Process

I provide theory-based causal evidence on the effects of risk-based regulatory inspections, modeled after the PCAOB’s, on auditor behavior in a multi-client setting where clients with relatively higher misstatement risk (“higher-risk” clients) have a higher risk of being inspected than clients with relatively lower misstatement risk (“lower-risk” clients). I predict and find inspections increase auditor effort, but only for higher-risk clients. Inspections impair auditors’ decision performance for lower-risk clients relative to a regime without inspections and relative to higher-risk clients within an inspections regime, ceteris paribus. Theory-based process model results show inspections increase auditors’ perceived inspection risks, which increase auditor effort for higher-risk clients, but also increase auditors’ task-related anxiety resulting in decreased decision performance for lower-risk clients. Notwithstanding the previously-identified benefits, this study identifies potential unintended consequences of riskbased regulatory inspections.

THE EFFECT OF COMPETENCE, INDEPENDENCE AND WORKLOAD ON AUDIT QUALITY

One indicator of quality actions in management and company is the assessment of financial reports through audit actions. In every audit action is always expected to give qualified results based on the conclusions and opinions objectively. The auditor becomes the prominant determinant of how the results of an audit action can be answerable. The competency, independency and workload become a causal variable of an auditor behavior’s perspective on audit quality. The purpose of this study is analyzing and determining the effect of partial and simultaneous competency, independency, and workload on audit quality and knowing which independent variables which have a significant effect on audit quality. The study involved 66 respondents. Then the collected data is analyzed by multiple regression and using SPSS which has been tested by validity, reliability test, and classical assumption test. The results of this study proves that there is a positive and significant influence partially and simutaneously from a competency variable, independency and workload on audit quality. The independency becomes a dominant variable which influence audit quality. Keywords: audit quality; competency; independency; workload. Received: 10 August, 2017; Accepter: 10 September, 2017

The Role Of Religious Control In Dysfunctional Audit Behavior: An Empirical Study Of Auditors Of Public Accounting Firm In Indonesia

This study is an empirical study of dysfunctional audit behavior in public accounting firm in Indonesia. The objective of this study is to analyze the influence of external locus of control and professional commitment on the dysfunctional audit behavior moderated by religious control. The sample of this study is 397 accountants, working in public accounting office in Indonesia, consisting of junior accountants, senior accountants and accountant managers. The sample is selected using accidental non-random sampling. The data is in the form of emails sent to the respondents. The data is analyzed using absolute difference of moderated regression SPSS. This study employs value theory approach, especially religious value in solving problems. The result of the study shows that partially, external locus of control, professional commitment, and religious control decrease dysfunctional audit behavior. In addition, this research reveals that religious control moderates the influence of professional commitment on dysfunctional audit behavior. However, religious control is not able to moderate external locus of control in decreasing dysfunctional audit behavior.

Dysfunctional Auditor Behavior and Working relationships with supervisors, managers moderating role of ethical climate

Dysfunctional Auditor Behavior and Working relationships with supervisors, managers moderating role of ethical climate

PENGARUH TIME BUDGET PRESSURE TERHADAP DYSFUNCTIONAL AUDIT BEHAVIOR DENGAN DIMODERASI LOCUS OF CONTROL

This study aims to examine the effect of time budget pressure and locus of control on the dysfunctional audit behavior and to see whether the locus of control can moderate the relationship between time budget pressure and the dysfunctional audit behavior. Questionnaires are distributed to 201 auditor who act as respondents, but only 146 questionnaire thatcan be processed from 51 KAP in Jakarta. Data analysis is conducted using SmartPLS 3.0 program.The results showed that, partially, time budget pressure variable and external locus of control give significant influence to dysfunctional audit behavior while internal locus of control does not affect dysfunctional audit behavior. The external and internal variables of the locus of control are not able to moderate the time budget pressure relationship to the dysfunctional audit behavior. Another finding in the form of sensitivity analysis suggests that male respondents consider that time budget pressure and external locus of control are factors that encourage them to perform dysfunctional audit behavior while time budget pressure does not encourage female respondents to perform dysfunctional audit behaviors.

ANALISIS PENGARUH KARAKTERISTIK PERSONAL TERHADAP PERILAKU MENYIMPANG PELAKSANAAN AUDIT

This study aims to analysis the impact of personal characteristic toward dysfunctional audit behaviour. The characteristic personal as independent variabel consist of gender, education level and job experience.Sample in this research is auditors who work in Public Accounting Office in Jakarta. Data is collected by quetioner and the result survey is 130 auditors.Data analysis used Statistical Package for the Social Sciences versi 24.The result of this study show that education and job experience have effected toward dysfunctional audit behavior, while gender has not effected toward dysfunctional audit behavior.

PENGARUH KARAKTERISTIK PERSONAL AUDITOR TERHADAP PENERIMAAN PERILAKU DISFUNGSI AUDIT PADA UNIT ORGANISASI TNI ANGKATAN LAUT

He purpose of this study is to determine the influence of Locus of Control, self-esteem relating to ambition, professional commitment, personal performance of employees to acceptance of dysfunctional audit behavior. The data of this research is officer of examiner who work in Ispektorat Jenderal TNI Navy force as many as 74 people. The research methodology used is descriptive statistic with validity test, reliability test and simple linear regression test. The results of this study indicate that the locus of control and professional commitment have a significant positive influence on the acceptance of dysfunctional audit behavior, while the self-esteem associated with ambition, personal performance and turn over interntion significantly negatively affect the acceptance of dysfunctional audit behavior. In order to control the reception of dysfunctional audit behavior, Irjenal needs to encourage self-esteem enhancement, improved personal performance of pegwai and turn over intention.Key Word : Locus of Control,Self Esteem In Relation to Ambition, Profesional commitment, profesional, self rate employee performance , turn over intension, Disfungsional Auditor Behaviour