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The Attributes of Dysfunctional Audit Behavior (DAB): Second Order Confirmatory Factor Analysis

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  • M. Ardiansyah Syam
  • Syahril Djaddang
  • Mulyadi
  • Imam Ghozali

Abstract

This paper is intended to confirm the attributes of dysfunctional audit behavior (DAB). The attributes of dysfunctional audit behavior consist of under-reporting of time (URT), premature sign-off (PMSO), and time-budget pressure (TBP). We propose task complexity as a new attribute of dysfunctional audit behavior. The data was gathered from 367 senior auditors who work at Big-fourand Non-big four of 140 Public Accounting Firms that registered in Indonesian Public Accounting Association (IAPI). The data was processed using Second Order Confirmatory Factor Analysis (SEM-PLS) ¨C SmartPLS3. The result of the study confirmed that the attributes of under-reporting of time (URT), positively, manifest the dysfunctional audit behavior. The attributes of premature-sign-off (PMSO), positively, manifest the dysfunctional audit behavior. The attributes of time-budget pressure (TBP), positively, manifest the dysfunctional audit behavior. The proposed factor, task complexity (TC) positively, manifests the dysfunctional audit behavior. The premature-sign-off is the most dominant factor reflecting/manifesting the dysfunctional audit behavior. The under-reporting of time (URT), premature sign-off (PMSO), time-budget pressure (TBP), and task complexity (TC) can be used as the predictor of dysfunctional auditor behavior (DAB). The higher the incidence of their attributes, the higher the potential incidence of dysfunctional audit behavior is.

Suggested Citation

  • M. Ardiansyah Syam & Syahril Djaddang & Mulyadi & Imam Ghozali, 2020. "The Attributes of Dysfunctional Audit Behavior (DAB): Second Order Confirmatory Factor Analysis," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 311-322, April.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:2:p:311-322
    DOI: 10.5430/ijfr.v11n2p311
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    References listed on IDEAS

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    1. Lawrence J. Abbott & Brian Daugherty & Susan Parker & Gary F. Peters, 2016. "Internal Audit Quality and Financial Reporting Quality: The Joint Importance of Independence and Competence," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 3-40, March.
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    3. Zuraidah Mohd-Sanusi, 2007. "Audit judgment performance: assessing the effect of performance incentives, effort and task complexity," Managerial Auditing Journal, Emerald Group Publishing, vol. 22(1), pages 34-52, February.
    4. Agoglia, Christopher P. & Hatfield, Richard C. & Lambert, Tamara A., 2015. "Audit team time reporting: An agency theory perspective," Accounting, Organizations and Society, Elsevier, vol. 44(C), pages 1-14.
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