Nehme, R., Michael, A. and Haslam, J. (2022) The impact of time budget and time deadline pressures on audit behaviour: UK evidence. Meditari Accountancy Research, 30 (2). pp. 245-266. ISSN 2049-372X
Abstract
Purpose A survey is here systematically conducted to analyse auditors’ perceptions of dysfunctional auditing behaviour (DAB). As a result of many accounting scandals and litigations faced by audit firms, this paper aims to assess whether factors leading to DAB are embedded in audit firms’ practices.
Design/methodology/approach The sample used in this study comprises auditors at all levels of employment with the big four audit firms in the United Kingdom (UK). DAB is analysed using two signals/indicators: premature sign-off and under-reporting of chargeable time. Time budget pressure and time deadline pressure are the factors considered here as potentially pushing auditors to exhibit DAB. A careful and considered analysis and interpretation is here articulated. Additionally, the sample individuals are divided into audit trainees and experienced auditors to assess any potential differences in the perception of DAB that reflect the experience factor.
Findings Coordination with internal auditors, different perceptions between audit trainees and experienced auditors of dysfunctional behaviour, working during their personal time and the box-ticking exercise are amongst the findings that may help practitioners to understand the reasons behind dysfunctional behaviour and identify measures to mitigate it.
Originality/value The study can aid concerned executives and audit partners to minimise DAB related to different time pressures by casting light on the key ethical issues. The study is conducted on a sample of the big four firms in the UK covering all organisational structure. It assesses if experience plays a role in the perception of DAB.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Emerald Publishing Ltd. This is an author-produced version of a paper subsequently published in Meditari Accountancy Research. This version is distributed under the terms of the Creative Commons Attribution-NonCommercial Licence (http://creativecommons.org/licenses/by-nc/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. You may not use the material for commercial purposes. |
Keywords: | Big Four; Auditors' behaviour; Time pressures |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 10 Feb 2021 11:50 |
Last Modified: | 27 May 2022 07:08 |
Status: | Published |
Publisher: | Emerald |
Refereed: | Yes |
Identification Number: | 10.1108/MEDAR-09-2019-0550 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:170678 |