Factors Affecting Dysfunctional Behavior and Turnover of Auditors in Audit Institutions

Document Type : Research Paper

Authors

Abstract

The main factor in the success of many service companies, including auditing institutions, is manpower. Without expert manpower, performance and effectiveness of these institutions will be essentially affected, because human resource is the most important asset of the institutions. Therefore, functional behavior and also durability of auditors have great importance to these institutions. In the other hand, the dysfunctional behavior and turnover of employees in these institutions will be a big blow. This study aims to examine the factors affecting the dysfunctional behavior at various levels (Including task complexity, auditor independence, time budget pressure and client’s importance) in order to answer the question whether dysfunctional behavior can influence the turnover of auditors in auditing institutions or not. So, 160 people (including technical managers, senior directors and supervisor) in the process of implementation of the study were surveyed using a questionnaire. The results of the analysis carried out using structural equation modeling and Smart PLS indicates that task complexity, auditor independence and time budget pressure impact dysfunctional behavior and this behavior has an effect on turnover in auditing institutions, while the role of the client’s importance on dysfunctional behavior is not supported.

Keywords

Main Subjects

References

برزیده، فرخ و خیراللهی، مرشید. (1390). مسئولیت پاسخگویی، فشار زمانی، و کتمان شواهد حسابرسی، 11 (45)، 4-27.
بزرگ­اصل، موسی. (1382). پشت پرده سقوط انرو و پیامدهای آن بر حرفه حسابداری، حسابرس، دوره دهم، شماره 20، ص 46-53.
حساس­ یگانه، یحیی و تالانه، عبدالرضا. پژوهش­های رفتاری در حسابرسی، دوره بیستم، شماره 157، ص 13-15.
حساس­یگانه، یحیی و مقصودی، امید. (1390). ارزش‌های اخلاقی در قضاوت حرفه‌ای حسابرس، اخلاق در علوم و فناوری، دوره ششم، شماره 1، ص 62-73.
داوری، علی و رضازاده، آرش. (1392). مدل‌سازی معادلات ساختاری با نرم‌افزار PLS، سازمان انتشارات جهاد دانشگاهی، چاپ اول.
زارع چاهوکی، محمدعلی. (1389). روش‌های تحلیل چند متغیره در نرم‌افزار SPSS، دانشکده منابع طبیعی دانشگاه تهران.
مهرانی، ساسان و نعیمی، مهدیس. (1382). تئوری اخلاقی و تأثیر فشار بودجه زمانی بر رفتار حسابرسان مستقل، بررسی­های حسابداری و حسابرسی، سال دهم، شماره 32، ص 43-61.
مهرانی، ساسان. (1379). تأثیر فشار بودجه زمانی بر رفتار حسابرسان مستقل تحت تئوری عدالت نسبی، رساله دکتری، دانشگاه تهران.
نیکبخت، محمدرضا و مهربانی، حسین. (1385). بررسی اثر خدمات و میزان حق‌الزحمه‌های غیر حسابرسیِ مؤسسات حسابرسی بر استقلال حسابرس، بررسی‌های حسابداری و حسابرسی، دوره 13، شماره 2، ص 129-137.
هادی­زاده مقدم، اکرم؛ نکویی­زاده، مریم و میرزاده، لیلا. (1389). نقش تئوری پیچیدگی در تحول سازمان­ها، تدبیر، شماره 216، ص 30-35.
Abdolmohammadi, M. , & Wright, A. (1987). An examination of the effects of experience and task complexity on audit judgments. Accounting Review, 1-13.
Alderman, C. W. , & Deitrick, J. W. (1982). Auditors’ perceptions of time budget pressures and premature sign-offs: A replication and extension. Auditing: A Journal of Practice & Theory, 1 (2) , 54-68.
Armitage, C. J. , & Conner, M. (1999). Distinguishing Perceptions of Control From Self‐Efficacy: Predicting Consumption of a Low‐Fat Diet Using the Theory of Planned Behavior1. Journal of applied social psychology, 29 (1) , 72-90.
Bamber, E. M. , & Iyer, V. (2009). The effect of auditing firms' tone at the top on auditors' job autonomy, organizational-professional conflict, and job satisfaction. International Journal of Accounting & Information Management, 17 (2) , 136-150.
Bonner, S. E. (1994). A model of the effects of audit task complexity. Accounting, Organizations and Society, 19 (3) , 213-234.
Chan, K. , Kleinman, G. , & Lee, P. (2009). The impact of Sarbanes-Oxley on internal control remediation. International Journal of Accounting & Information Management, 17 (1) , 53-65.
Chan, K. , Kleinman, G. , & Lee, P. (2009). The impact of Sarbanes-Oxley on internal control remediation. International Journal of Accounting and Information Management, 17 (1) , 53-65.
Cronbach, L. (1951). Coefficient Alpha and the Internal Structure of Tests. Psychometrical, 16, 297-334.
Donnelly, P. D. , Quirin, J. J. , & O'Brian, D. (2006). Attitudes towards dysfunctional auditing behaviour: the effect of locus of control, organizational commitment and position. Journal of Applied Business Research, 19 (1) , 95-108.
Ebrahim, A. (2001). Auditing quality, auditor tenure, client importance, and earnings management: An additional evidence. Unpublished, Rutgers University.
Falk, H. , Lynn, B. , Mestelman, S. , & Shehata, M. (2000). Auditor independence, self-interested behavior and ethics: some experimental evidence. Journal of Accounting and Public Policy, 18 (4) , 395-428.
Fishbein, M. , & Ajzen, I. (1980). Understanding attitudes and predicting social behaviour.
Fornell, C. , & Larcker, D. (1981). Structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18 (1) , 39-50.
Glanz, K. , Rimer, B. K. , & Viswanath, K. (Eds.). (2008). Health behavior and health education: theory, research, and practice. John Wiley & Sons.
Gold, A. , Hunton, J. E. , & Gomaa, M. I. (2009). The impact of client and auditor gender on auditors' judgments. Accounting Horizons, 23 (1) , 1-18.
Gundry, C. L. (2006) , “Dysfunctional behaviour in modern audit environment: the effect of time budget pressure and auditors’ personality type on reduced audit quality practices”, Bachelor of Commerce dissertation, University of Otago, Dunedin.
Henseles, J. , Ringle, C. , & Sinkovics, R. (2009). the use of partial least squares path modeling in international marketing. New Challenges to International Marketing, 20, 277-320.
Kelley, T. and Margheim, L. (1990) , “The impact of time budget pressure, personality, and leadership variables on dysfunctional auditor behaviour”, Auditing: A Journal of Practice & Theory, 9 (2) , 21-42.
Lightner, S. M. , Adams, S. J. , & Lightner, K. M. (1982). The influence of situational, ethical, and expectancy theory variables on accountants' underreporting behavior. Auditing: A Journal of Practice & Theory, 2 (1) , 1-12.
Lightner, S. M. , Leisenring, J. J. , & Winters, A. J. (1983). Underreporting chargeable time. Journal of Accountancy, 155 (1) , 52-57.
Liou, F. M. , & Yang, C. H. (2008). Predicting business failure under the existence of fraudulent financial reporting. International Journal of Accounting and Information Management, 16 (1) , 74-86.
Lord, A. T. , & Todd DeZoort, F. (2001). The impact of commitment and moral reasoning on auditors' responses to social influence pressure. Accounting, Organizations and Society, 26 (3) , 215-235.
Louwers, T. , Ramsay, R. , Sinason, D. and Strawser, J. (2005) , Auditing and Assurance Services, McGraw-Hill, New York, NY.
Lundberg, C. , Gudmundson, A. , & Andersson, T. D. (2009). Herzberg's Two-Factor Theory of work motivation tested empirically on seasonal workers in hospitality and tourism. Tourism Management, 30 (6) , 890-899.
Mazloumi Mahmoodabad S, Mehri A, Morovati Sharifabadi MA, Falah Zadeh H. Using models developed to predict the behavior of the planned use of helmets on motorcycles staff Yazd. Birjand University of Medical Sciences 2007; 14 (4): 33-9.
McNamara, S. M. and Liyannarachchi, G. A. (2008) , “Time budget pressure and auditor dysfunctional behaviour within and occupational stress model”, Accountancy Business and Public Interest, Vol. 7 No. 1, pp. 237-268.
Mohd-Sanusi, Z. , & Mohd-Iskandar, T. (2006). Audit judgment performance: assessing the effect of performance incentives, effort and task complexity. Managerial Auditing Journal, 22 (1) , 34-52.
Montano, D. E. , Kasprzyk, D. , Glanz, K. , Rimer, B. K. , & Viswanath, K. (2008). Theory of reasoned action, theory of planned behavior, and the integrated behavioral model.
Moore, D. A. , Tetlock, P. E. , Tanlu, L. , & Bazerman, M. H. (2006). Conflicts of interest and the case of auditor independence: Moral seduction and strategic issue cycling. Academy of Management Review, 31 (1) , 10-29.
Nunnally, J. (1978). Psychometric theory. New York, NY: McGraw-Hill.
Otley, D. T. , & Pierce, B. J. (1995). The control problem in public accounting firms: An empirical study of the impact of leadership style. Accounting, Organizations and Society, 20 (5) , 405-420.
Porter, L. W. , Steers, R. M. , Mowday, R. T. , & Boulian, P. V. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. Journal of applied psychology, 59 (5) , 603.
Psaros, J. and Seamer, M. 2004. Australian audit committees – Do they meet best practice guidelines? Australian Accounting Review, 14: 77–85.
Rhode, J. G. (1978). Survey on the influence of selected aspects of the auditor’s work environment on professional performance of certified public accountants. Issued as the Independent Auditor’s Work Environment: A Survey. New York, NY: AICPA.
Riahi-Belkaoui, A. (1989). Behavioral accounting: the research and practical issues. Quorum Books.
Smith, R. (1995) , “Underreporting time: an analysis of current tax practice”, Journal of Applied Business Research, Vol. 11, pp. 39-45.
Tan, H. T. , & Kao, A. (1999). Accountability effects on auditors' performance: The influence of knowledge, problem-solving ability, and task complexity. Journal of Accounting Research, 209-223.
Tenenhaus, M. ; Amato, S. & Esposito Vinzi, V. (2004). a global Goodness-of-Fit index for PLS structural equation modeling. In Proceedings of the XLII SIS Scientific Meeting, 739-742.
Wetzels, M. , Odekerken-Schroder, G. , & Van Oppen, C. (2009). using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33 (1) , 177.
Williams, S. V. (2003). An empirical investigation of turnover intentions of internal auditors (Doctoral dissertation, Virginia Commonwealth University Richmond, VA).
Yuen, D. C. , Law, P. K. , Lu, C. , & Guan, J. Q. (2010). Dysfunctional auditing behaviour: empirical evidence on auditors' behaviour in Macau. International Journal of Accounting and Information Management, 21 (3) , 209-226. 

Files

History

  • Receive Date: 23 January 2015
  • Revise Date: 02 January 2016
  • Accept Date: 14 January 2016

Share

How to cite

Statistics