Moderate Emotional Spiritual Quotient (ESQ): Internal & External Factors on Dysfunctional Auditor Behavior

Abstract

This research aimed to provide empirical evidence of the effect of internal and external auditor factors and dysfunctional auditor behaviour on Emotional Spiritual Quotient (ESQ) serving as a moderator. This study’s population comprised 866 auditors at the Public Accounting Firms of Bali and East Java Province. The sample was determined using a method of purposive sampling. The data was collected through a survey method with a questionnaire technique. The data analysis used is the Partial Least Square (PLS) approach which is a component- or variant-based Structural Equation Modeling (SEM) model. The questionnaires distributed were 866 questionnaires, while the questionnaires returned were 286 questionnaires with details of 11 questionnaires being dropped and 275 questionnaires that could be used. This study’s findings demonstrated that Machiavellian characteristic, time budget pressure, and obedience pressure positively affected dysfunctional auditor behaviour, but the experience did not affect dysfunctional auditor behaviour. In addition, this study revealed that Emotional Spiritual Quotient (ESQ) weakened the effect of Machiavellian characteristic, time budget pressure, and obedience pressure on dysfunctional auditor behaviour but does not moderate the impact of the experience. Suggestions that can be given are that further research is expected to provide a clearer characteristic of the research subjects and for auditors who are in the Public Accounting Firm are expected to be taken into consideration to avoid dysfunctional behavior.

Keywords: Machiavellian characteristic, experience, time budget pressure, obedience pressure, dysfunctional auditor behavior, Emotional Spiritual Quotient (ESQ)

DOI: 10.7176/RJFA/14-13-05

Publication date:July 31^st 2023