Senior Auditors Research Articles

Role Balance and Work-Life Stress Among Balinese Hindu Women Auditors

This study explores the role balance of Balinese Hindu women auditors and its impact on work-life stress, focusing on an informant who has successfully balanced her role as a single parent and a senior auditor at the Bali Provincial Development and Finance Supervisory Agency. Using a phenomenological approach with an interpretive qualitative design, this study aims to understand how the informant successfully manages her dual roles within Bali's solid cultural context. The research findings reveal that the informant can balance her dual roles dynamically and holistically. She prioritizes her family as the primary focus while still dedicating herself to her professional duties. The work-life stress management strategies employed by the informant involve flexibility, adaptability, and high commitment to both of her roles. The results of this study provide in-depth insights into how Balinese Hindu women can successfully balance their dual roles as Balinese Hindu women working as auditors. The implications of this study include a better understanding of the challenges and strategies needed to achieve work-life balance, especially within a culturally rich context such as Bali. This study contributes theoretically to the literature on role balance and work-life stress. It provides practical insights for individuals and organizations in supporting the well-being and productivity of Balinese Hindu women with dual roles.

Investigating the Extent and Impact of AI Applications on Audit Firms Performance in Saudi Arabia

This study investigates the extent and impact of AI applications on audit firm performance in Saudi Arabia, focusing on operational efficiency and audit quality in the context of Vision 2030's digital transformation agenda. Data were collected from 35 audit firms through a structured questionnaire targeting senior auditors and managers, using a two-part survey that included demographic data and variables related to AI adoption, operational efficiency, and audit quality. Descriptive statistics and regression analysis were employed to assess AI adoption levels and examine its effects. The findings reveal that AI adoption among Saudi audit firms is in its early stages, with significant variability based on firm size and technological readiness. AI positively impacts operational efficiency through task automation and predictive insights, reducing manual effort and enhancing productivity. Additionally, AI improves audit quality by reducing errors and increasing consistency. However, the results emphasize that AI’s benefits are contingent on strategic integration, proper implementation, and effective training. This research provides valuable insights for audit firms and policymakers, highlighting the transformative potential of AI in modernizing the auditing landscape and achieving Vision 2030 objectives.

Future Relevance of Innovative Information Technology in External Auditing and the Gap Between the Expertise in Sri Lanka

This study addresses a critical empirical gap by investigating the perceptions of external auditors in Sri Lanka regarding their current expertise and the future relevance such expertise in terms of innovative information technology (IT) in external auditing. The research also assesses whether discrepancies exist between auditors’ current IT capabilities and the expected expertise of emerging IT technologies. Additionally, it explores how specific auditor characteristics influence IT competence and perceptions of future relevance. A structured questionnaire was administered to a sample of 200 external auditors from both Big Four and non-Big Four firms, and the data were analyzed using descriptive and inferential statistical techniques. The findings indicate that while auditors acknowledge the growing importance of IT, a significant gap persists between their existing expertise and the skills required to adopt future IT tools effectively. This gap is most pronounced for advanced technologies such as machine learning, process mining, and robotic process automation. On the other hand, regression analysis highlights that work experience and hierarchical position of external auditors significantly influence IT knowledge and perceptions of relevance. Conversely, demographic factors such as age, gender, education, and firm size did not show a significant impact. The study underscores the need for targeted professional development, particularly for senior auditors, to bridge the technological gap. The results suggest that regulatory and educational bodies should implement strategic initiatives to ensure external auditors are equipped to meet the evolving demands of the audit profession in a rapidly changing technological landscape.

Factors Influencing Intention in Implementing an External Whistleblowing System

This studies goals to research and decide the simultaneous and partial affect of Instrumental, Affective, Self-Efficacy, Perceived Controllability, and Independence Commitment on External Whistleblowing Intention with Perceived Organizational Support as a moderating variable. This studies makes use of quantitative research with purposive sampling methods. This research combines internal factors in the form of personality and external factors in the form of the organizational environment as a basis for implementing external whistleblowing, to find out which factors are able to encourage whistleblowers to implement external whistleblowing. This is a primary data originating from questionnaire respondents. The questionnaire was made in electronic form, using Google Form media. Respondent data came from Senior Auditors and Supervisory Auditors of Public Accounting Firms (KAP) in Indonesia, totaling 100 respondents. SmartPLS version 3 was used for analysis. Results indicate that Instrumental variable has a positive effect on External Whistleblowing Intention. Affective has no effect on External Whistleblowing Intention. Self-Efficacy has no effect on External Whistleblowing Intention. Perceived Controllability has no effect on External Whistleblowing Intention. Independence Commitment has no effect on External Whistleblowing Intention. Perceived Controllability does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Affective does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Independence Commitment does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Self-Efficacy does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Instrumental does not moderated by Perceived Organizational Support on External Whistleblowing Intention. This research has limitations. The data was obtained from an instrument based on answers based on the respondents' perceptions and experiences. Research data can be biased, because if the respondent's answers are different from their perceptions and experiences of the actual situation, it can reduce the accuracy of the information from this research.

Can Thinking about Alternative Explanations Promote Professional Skepticism?

SYNOPSIS We conduct an experiment with practicing Big 4 audit seniors and demonstrate that generating counterexplanations for an event in an unrelated task prior to completing audit planning tasks activates a counterfactual mindset that enhances auditors’ professional skepticism. This approach to activating professional skepticism can be implemented without auditor training and can be deployed across many different audit tasks. Overall, the experiment indicates that activation of a counterfactual mindset has significant potential to enhance audit quality.

Artificial Intelligence's Impact on the Quality of External Auditor Reports in Saudi Domestic and International Audit Companies

This study investigates how external auditors perceive using artificial intelligence (AI) in the Kingdom of Saudi Arabia (KSA). It examines how external auditors perceive the impact of artificial intelligence on audit quality. It also seeks to determine whether local and foreign external auditors have different perspectives on AI's application and how it affects audit quality. Data were gathered using a questionnaire distributed to 44 regional and 20 international companies to accomplish research goals. The auditing manager, audit partners, senior auditors, and other staff members with possible accounting and auditing experience were among the participants. SPSS was used to analyze the data; in our analysis, we used descriptive analysis, validity and reliability testing, and data analysis to test our hypotheses. This investigation reveals that the perceived impact of artificial intelligence (AI) on audit quality does not vary significantly between domestic and foreign audit firms. Regarding audit quality, the perceived contributions of all audit firms—local and foreign—are equal. It also adds to the importance of using AI and how it will enhance the quality of firms and reduce any act of fraud. Lastly, it recommends that firms contribute to training employees on using AI to face and compete with the changes and challenges happening around the world.

The Influence of Internal Control and Client Importance on Audit Quality with Time Budget Pressure as a Moderating Variable

This study aims to empirically examine the influence of internal control and client importance on audit quality, with time budget pressure as a moderating variable. The data used in this study was sourced from a questionnaire survey distributed to respondents in March via Google Forms. Respondents were selected using purposive sampling, with criteria including junior auditors, senior auditors, and Managing Partners (leaders) from audit firms (KAP) in Bogor, Jakarta, Bali, and East Java. The final sample used in this study was 50 observations. The results of this study show that client importance has a negative effect on audit quality. Internal control has a positive effect on audit quality. Time budget pressure moderates the relationship between client importance and audit quality in a positive direction. Time budget pressure moderates the relationship between internal control and audit quality in a negative direction. Time budget pressure itself has a positive effect on audit quality. Keywords: Internal Control, Client Importance, Kualitas Audit dan Time Budget Pressure

Remote Audit Quality, Audit Efficiency, and Auditors’ Job Satisfaction: Implications for Audit Firms and External Auditors

SUMMARY In the aftermath of the COVID-19 pandemic, remote and hybrid audits have become institutionalized in the external audit profession. However, the impact of remote/hybrid audits on audit success (i.e., audit quality, audit efficiency, and auditor job satisfaction) is not clearly understood. Recruiting external auditors (including audit associates, audit seniors, audit managers, and audit partners) with an average of three to five years of auditing experience, Li, Goel, and Williams (2023) found that working remotely is associated with high audit efficiency. They also found that in comparison to on-site audits, remote audits show increases in technology reliance, professional skepticism, workload, fatigue and frustration, risk-seeking attitudes, and team monitoring rigidity and decreases in auditor–client communication and cooperation efficiency. Furthermore, Li et al. (2023) identified situational and dispositional factors that become critical in remote/hybrid audits. We summarize the key findings of their paper and provide actionable suggestions for audit practitioners. Data Availability: Data are available upon request. JEL Classifications: M42.

Spiritual Intelligence as a Moderation Between Professional Ethics and Professionalism of Public Accountants

Purpose: This study aims to investigate the implementation of professional ethics on professionalism of Public Accountants with spiritual intelligence as moderating variable. Theoretical framework: Professional ethics and spiritual intelligence are needed by public accountants to achieve professionalism. The professional ethics contain principles regarding professional behavior that will govern the relationship between accountants and clients as well as the public. Spiritual intelligence is the reflection between the body and the human spirit in action. The existence of spiritual intelligence allows humans to think more creatively, broad-minded, can make or even change rules that will make the person work better. Method: This study uses quantitative approach. The population in this study is Public Accountants in the Malang area which include partners, managers, supervisors, senior auditors and junior auditors. The sample was 53 Public Accountants of 11 Public Accountants. This study uses Moderate Regression Analysis (MRA) analysis techniques. Results and conclusions: The implementation of Professional Ethics has a positive effect on the Professionalism of Public Accountants and Spiritual Intelligence moderates (strengthens) the influence of the implementation of Professional Ethics on the Professionalism of Public Accountants. Research implications: Implementation the professional ethics can improve the professionalism of the Public Accountants. The higher spiritual intelligence of public accountant can motivate him/her to implement professional ethics and finally can improve his/her professionalism. Originality/value: Including the spiritual intelligence in the professional ethics of public accountants.

Investigating ISA adaptation in a developing country context: the selective influence of Big Four affiliates

ABSTRACT This paper examines how the national process of adapting the International Standards on Auditing (ISAs) unfolds in developing countries, focusing on the case of Egypt. The study relies on data gathered from 33 semi-structured interviews with government officials and senior auditors alongside documentary evidence. Our findings show how legacy state institutions that were involved in the national standard-setting committee have largely fallen short of their aspirations to align local auditing standards with the expectations set out in the ISAs. The lack of a coherent approach to developing state policy objectives, resources, and public consultation, together with technical demands and translation difficulties, hampered the process. Such weaknesses provided an opportunity for the local Big Four affiliates to become deeply involved. The firms’ strategic manoeuvres were driven not only by a material desire to protect their market position/status but also by a commitment to a perceived national duty to support government attempts at national standard-setting. Importantly, our findings reveal the selectivity of such interventions and the differential impact of ISA adaptation on the diverse constituency of audit firms. Theoretically, we propose the institutional void perspective to conceptualise the intervention of private actors as well as to articulate the elements of a void in an audit regulatory process. While Big Four firms typically seek to position themselves in such processes, we argue that international reforms and policies should focus on fostering a more inclusive, accountable, and deliberative system that promotes the presence of diverse, independent and representative local audit actors.

Does audit quality affect auditors’ career development? Evidence from Chinese audit firms’ demise

PurposeThis study aims to test the effect of individual audit quality on career advancement the audit labour market.Design/methodology/approachThis paper uses data on auditors from two collapsed audit firms in China, namely, Ruihua and Zhengzhong Zhujiang, and tests the effect of individual audit quality on career advancement in the audit labour market.FindingsThe baseline results show that high-quality audits promote auditors’ career advancement. Our results hold after a battery of robustness tests. Further analyses support our hypothesis, indicating that client retention and audit fees are positively related to auditors’ prior audit quality. The effect of audit quality on career advancement does not hold for auditors from sanctioned branch offices or for auditors with prior culpable clients, as shared reputation damage can weaken the effect of high audit quality. Furthermore, this paper investigates whether the reputation enhancement effect of high audit quality can be strengthened by auditor experience, the title of “senior auditor” and IPO auditing experience. We also show that clients and audit firms place more weight on the quality of audits conducted by auditors in competitive markets and auditors with engagements matched with industries.Originality/valueTogether, these findings indicate the vital role of individual audit quality in auditors’ career development in the audit labour market, consistent with the reputation rationale for audit quality.

The Risk of Technology Dominance in Using Digital Decision Aids in Assurance Engagements—Evidence from a Survey among Danish Auditors

SYNOPSIS Accounting firms continue to develop digital decision aids (DDAs) that reinforce consistent use of firms’ audit methodology and provide assurance for meeting regulator expectations. Firms actively promote use and reliance on DDAs, but relying on such systems risks over-reliance, impacting decision quality and heightening technology dominance. Surveying 725 Danish auditors, we sought to determine the level of reliance practicing auditors have on DDAs and understand how auditors experience these potentially deleterious effects in the field. Results show auditors rely more on DDAs when auditors are inexperienced, task complexity is high, there is familiarity with the DDA, and/or there is cognitive congruence. Junior auditors rely significantly more on DDAs than senior auditors, whereas auditors indicating low usage rely significantly less on DDAs. Overall, senior auditors and auditors not heavily using DDAs have deskilling concerns and are less positive on junior auditors’ as well as the profession’s skill development when using DDAs. JEL Classifications: M15; M41; M42.

Is auditor financial decision-making affected by prior audit report information? A behavioral approach

The role of financial experts is to provide their professional judgments with an opinion included in the financial reports after reviewing an entity's financial information, following a specific audit process. We investigate whether confirmation bias (through prior audit opinions) occurs among auditors during the audit process and decision-making, and whether experience mitigates this effect. A total of 175 non-experienced auditors run a 2x4 between-subjects experiment (experiment 1) studying how financial information (IV with two levels: negative and neutral/positive) and previous audit report (IV with four levels: absence, negative, moderately negative, and positive) might influence the issuance of the subsequent decision-making (DV). In addition, a total of 32 junior level 1 auditors (less than one year of experience), 31 junior level 2 auditors (up to 3 years of experience) and 20 senior auditors (more than 3 years of experience) run a 2 × 4 × 3 between-subjects experiment (experiment 2) analyzing if experience (IV with three levels of experience: less than one-year, between one and three years, more than three years) mitigates this effect (experiment 2). Results confirm that the previous-year audit report affect auditors' current assessment, showing that positive and negative prior opinions persuade auditors when suggesting the next one. This finding is relevant as auditors' opinions could be conditioned by prior opinions instead of their own expertise. Our evidence also suggests that professional experience mitigates this influence on auditors' assessments. Consequently, this study has relevant implications for partners, audit professionals and audit firm recruiters. A general implication is that auditor training courses should reinforce the auditor's own expertise and criteria based on the deep analysis of financial and economic data rather than on the work of previous auditors.

Model Sifat Kepribadian Memoderasi Hubungan Stres Kerja dan Perilaku Disfungsional Audit

This study aims to identify personality models that moderate the relationship between work stress and audit dysfunctional behaviour, in an effort to improve audit quality. Specifically, this study aims to investigate the effects of stress and audit dysfunctional behavior, focusing on the role of personality traits namely the big five personality and locus of control. The population of this research is all auditors who work at the Public Accounting Firm in the City of Semarang. The sampling technique uses purposive sampling, namely the sampling technique uses certain criteria. The criteria for the study sample were junior and senior auditor staff who had worked in KAP for at least 1 year, and 57 respondents were obtained. The analysis technique used is moderated regression analysis. Based on the results of data processing it was found that: There was no influence of work stress on dysfunctional behavior; There is no influence of personality traits on the relationship of work stress and audit dysfunctional behaviour. The personality trait in question includes five factors: openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism. The findings also showed that there was no effect of locus of control on the relationship between work stress and audit dysfunctional behaviour. Locus of control is seen from external and internal aspects.

Determinan Perilaku Disfungsional Auditor Dimoderasi Sifat Machivellian

Objectives: This study aims to assess the impact of professional commitment, task complexity, and time budget pressure on auditors' dysfunctional behavior, considering Machiavellian traits as a moderating variable.Design/method/approach: Employing an associative quantitative approach, the research gathered data through the distribution of questionnaires to auditors in public accounting firms in the South Jakarta area. Probability sampling, utilizing the Slovin formula, was employed, resulting in 81 eligible respondents. Data analysis utilized the bootstrapping method, facilitated by SmartPLS version 4 software. Results/findings: The results reveal that professional commitment, task complexity, time budget pressure, and Machiavellian traits all exert a significant positive influence on auditors' dysfunctional behavior. Notably, Machiavellian traits only moderate the relationship between task complexity and auditors' dysfunctional behavior. In contrast, professional commitment and time budget pressure are not moderated by Machiavellian traits concerning auditors' dysfunctional behavior.Theoretical contribution: This study contributes to the literature by demonstrating that auditors' dysfunctional behavior is influenced by a combination of internal and external factors, supporting attribution theory.Practical contribution: The study offers insights for public accounting firms to focus on providing attention, supervision, and motivation to auditors, mitigating dysfunctional behavior and enhancing audit quality.LimitationsThis study’s limitations include its execution during peak season, leading to a predominance of junior and senior auditors responding to questionnaires, and a potential shortfall in questionnaire returns.

The DETERMINANTS OF AUDIT QUALITY AT PUBLIC ACCOUNTANT FIRMS IN SEMARANG CITY

Audit quality is still widely questioned by the public because there are still various public assessments in assessing public accountant firms, this assessment can be measured by the competence of auditors who are evaluated in the audit process. Apart from problems related to auditor competence, the same is the case with auditor integrity and ethics, which are factors that determine the audit quality of a public accountant firm. This study aimed to determine the effect of independence, auditor ethics and work experience on audit quality. This study uses quantitative methods with primary data obtained from distributing questionnaires. The population in this study were all senior auditors and junior auditors at KAP in Semarang with the Convenience Sampling technique. Researchers managed to collect 30 respondents. Data analysis was performed using multiple linear regression. Based on this study, the variables of independence, auditor ethics and work experience affect audit quality.

How workplace identities and team management practices affect distributed team auditors' willingness to speak up

AbstractDistributed, rather than co‐located, teams increasingly perform audit work, raising regulator concerns that distributed team communication issues may affect audit quality. We investigate upward communication (i.e., raising issues to supervisors), a key communication dimension related to audit quality. In Study 1, we survey 69 senior auditors to establish that distributed team upward communication suffers. Furthermore, distributed team auditors identify less with their teams and struggle to know when and how to speak up. Because both are linked to inhibited upward communication, we next experimentally test firm practices with the potential to attenuate these problems. Study 2, an experiment with 128 staff auditors and interns, reveals that making auditors' professional identities salient improves upward communication on co‐located teams with strong team identities but not on distributed teams with weak team identities. Study 3, an experiment with 58 staff auditors, replicates a key Study 2 finding with a design that makes no reference to team identity strength. Specifically, in the presence of a salient professional identity, upward communication is significantly higher for co‐located relative to distributed team auditors. Study 4, an experiment with 69 staff auditors, focuses solely on distributed teams. It indicates that several distributed team management practices, including one‐on‐one and standing daily meetings, encourage upward communication. Finally, Study 5, informal interviews with eight audit seniors, corroborates key survey and experimental findings. Combined, our results provide insights into why distributed team communication suffers, refine audit voice theory, and provide regulators, practitioners, and researchers with multiple paths to improve audit quality.

Profesional Skeptimisme Auditor dan Kualitas Audit dalam Era Blockchain (Auditor Professional Skepticism and Audit Quality in The Blockchain Era)

This research aims to identify the influence of professional skepticism on audit quality through blockchain technology as a moderating variable. This research also tries to find determining factors that can increase auditors' professional skepticism. Data analysis was carried out using SEM-PLS, with auditor analysis units in Indonesia. Data was collected through questionnaires sent to auditor managers, senior auditors and junior auditors as objects receiving pressure from clients in insurance engagements. The research results show that auditors' professional skepticism has a positive influence on audit quality. The interaction between client time limit pressure and audit quality is strengthened by the presence of professional skepticism. These findings conclude that auditors must increase professional skepticism in technological sophistication to improve audit quality. In addition, the results of this study indicate that the pressure of client time constraints has a positive influence on professional skepticism.

Exploring Technology Acceptance in Management Accounting Tools’ Adoption in Public Sector Accounting: A Sustainability Perspective for Organizations

This quantitative research study delves into the adoption of management accounting tools (MATs) and their impact on organizational performance and sustainability within the provincial branches of the Supreme Audit Agency of the Republic of Indonesia (Badan Pemeriksa Keuangan Republik Indonesia/BPK-RI). A well-structured research design and data collection approach is employed, where surveys are administered to 435 senior auditors within BPK-RI provincial branches. A robust data analysis using structural equation modeling (SEM) through SmartPLS v4 software is conducted to assess the relationships between variables. This study provides compelling evidence that the perceived usefulness of MATs significantly impacts their adoption. This underscores the importance of how users perceive the utility of these tools. Furthermore, this research identifies that MATs’ adoption directly affects organizational performance and sustainability, highlighting the positive impact of these tools in the public sector. However, this research suggests that user perceptions of the ease of use of MATs do not significantly influence their adoption in the public sector accounting context. The study also reveals that MATs play a mediating role, facilitating the relationship between perceived ease of use and perceived usefulness and their subsequent impact on organizational performance and sustainability. These findings are valuable for public sector organizations, policy development, and future research initiatives, contributing to a better understanding of MATs’ adoption and its implications in the dynamic landscape of public sector accounting, especially in Indonesia.

Role Conflict Memoderasi Locus Of Control dan Kompleksitas Tugas terhadap Perilaku Penyimpangan Auditor Akuntan Publik

The purpose of this study was to test and analyze whether locus of control role conflict and task complexity affect audit deviation behavior. This study uses a quantitative approach with a questionnaire survey model given to junior auditors, senior auditors, supervisors, managers, partners at the Public Accounting Firm in West Jakarta. The questionnaire that was processed was 128 respondents. Analysis using structural equation modeling (SEM) PLS Version.3.This study shows that locus of control has a positive effect on audit deviation behavior. Task complexity has a positive effect on audit deviation behavior. Moderating locus of control role conflict on audit deviation behavior and moderating task complexity role conflict on deviation behavior.