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

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