Explaining the influence of time budget pressure on audit quality in Sweden

Broberg, Pernilla; Tagesson, Torbjörn; Argento, Daniela; Gyllengahm, Niclas; Mårtensson, Ola

doi:10.1007/s10997-016-9346-4

Cited by 48 publications

(65 citation statements)

References 62 publications

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“…These aspects are captured in auditing literature that discusses auditing and audit firms in terms of, for example, business and financial gain (cf. Kaplan, 1987;Hanlon, 1996;Gendron, 2002;Boyd, 2004;Forsberg and Westerdahl, 2007;Broberg, 2013), and costs, time efficiency, and effectiveness (e.g., Mullarkey, 1984;Cushing and Loebbecke, 1986;Bamber et al, 1989;Fischer, 1996;Hanlon, 1996;Myers, 1997;Manson et al, 2001;Power, 2003;Broberg, 2013;Broberg et al, 2016).…”

Section: Professional and Organizational Identities And Firm Process mentioning

confidence: 99%

Auditors’ professional and organizational identities and commercialization in audit firms

Broberg

Umans

Skog³

et al. 2018

AAAJ

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Purpose: This paper seeks to explain how auditors' professional and organizational identities are associated with commercialization in audit firms. Unlike previous studies exploring the consequences of commercialization in the firms, our study directs its attention toward the potential driver of commercialization, which we argue to be the identities of the auditors. Design/methodology/approach: The paper is based on 374 responses to a survey distributed to 3588 members of FAR, the professional association of accountants, auditors and advisors in Sweden. The study used established measures of organizational and professional identity and introduced market, customer and firm process orientation as aspects of commercialization. The study explored the data through descriptive statistics, principle component analysis and correlation analysis and tested the hypotheses with multiple linear regression analysis. Findings: The findings indicated that the organizational identity of auditors has a positive association with three aspects of commercialization: market orientation, customer orientation and firm process orientation. Contrary to the arguments based on prior literature, our study has found that the professional identity of auditors is also a positively associated with commercialization. This indicates a change of the role of professional identity vis-à-vis commercialization of audit firms. The positive association between professional identity and commercial orientation could indicate the development of "organizational professionalism." The study also found differences between the association between professional identity and commercialization in Big 4 and non-Big 4 firms. While in Big 4 firms, professional identity is positively associated only with the firm's process orientation, in non-Big 4 firms, professional identity has a positive association with all three aspects of commercialization. Originality/value: The paper provides insight into how auditors' identities have influenced commercialization of audit firms and into the normalizing of commercialization within auditing. The study also developed a new instrument for measuring commercialization, one based on market, customer and firm process orientation concepts. This paper suggests that this instrument is an alternative to the observation through proxies.

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Section: Professional and Organizational Identities And Firm Process mentioning

confidence: 99%

Auditors’ professional and organizational identities and commercialization in audit firms

Broberg

Umans

Skog³

et al. 2018

AAAJ

Self Cite

View full text Add to dashboard Cite

show abstract

“…Reducing the time spent on an audit could also result from pressure exerted by the audit firm (Broberg et al 2013). Audit firms allocate a certain amount of time for audit engagements, which may result in pressure that influences how EAs perform their tasks and, in turn, could compromise audit quality (Broberg et al 2017;Gundry and Liyanarachchi 2007;Svanberg and Öhman 2013). However, our respondents did not explicitly mention time pressure as a factor pushing them towards cooperation.…”

Section: Purpose and Outcomes Of Cooperationmentioning

confidence: 93%

“…In addition, the fact that audit firms allocate a specific number of hours for the execution of audit tasks (in order to control the costs of auditing) generates time pressure, which has 'a detrimental impact on individuals' decision-making processes' (Gundry and Liyanarachchi 2007, p. 129). EAs who are exposed to high pressure might feel stress, which can affect the audit quality negatively (Broberg et al 2017;Gundry and Liyanarachchi 2007;McNamara and Liyanarachchi 2008;Svanberg and Öhman 2013). Thus, the opportunity to reduce time spent on audits and lessen overall pressure could be another reason why EAs are more likely to cooperate with IAs and use their work in the audit process (Brody 2012).…”

Section: Cooperation Outcomesmentioning

confidence: 99%

Reliance on the internal auditors’ work: experiences of Swedish external auditors

et al. 2018

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The purpose of this study is to explore how external auditors experience their decision to rely on internal auditors' work. This study employs both qualitative and quantitative methods consisting of semi-structured interviews and questionnaires administered to external auditors in Sweden. Semi-structured interviews were conducted with external auditors who are working in Big 4 audit firms in Sweden and have engagements with internal audit functions. A questionnaire was administered to authorized/approved auditors, members of the Swedish Association of Certified Public Accountants (FAR). Findings indicate that external auditors use the work of internal auditors as they gain efficiency in performing their work. Nevertheless, external auditors may compromise their independence and professionalism through closer involvement with internal auditors, which may lead to uncritical evaluation and use of the reports prepared by internal auditors. At the same time, while relying on the internal auditors' reports, external auditors appear to be conscious of the consequences for the audit quality they deliver. The study highlights the dilemma faced by external auditors in their cooperative work with internal auditors and the balance/imbalance in their opinions concerning efficiency gains, independence, professionalism and audit quality.

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“…Previous study which engaged either quantitative or qualitative methods (e.g. Wijaya & Yulyona, 2017;Broberg, Tagesson, Argento, Gyllengahm & Martensson, 2017;Svanberg & Ohman, 2016) had showed that audit time budget pressure has been increasing. DeZoort and Lord (1997) provided a comprehensive review of prior time budget and time deadline pressure associated to the research in accounting.…”

Section: Time Pressurementioning

confidence: 99%

The Influence of Work Overload, Time Pressure and Social Influence Pressure on Auditors’ Job Performance

Johari¹,

Ridzoan²,

Zarefar³

2019

IJFR

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Auditing is considered a stressful occupation as the job is always characterized by heavy workloads, many deadlines, time pressure, social pressure and commitment towards the organization. Public auditors are often under pressure to produce quality audit, and yet may be under serious work pressure or continually dealing with auditees in stressful situations. Work stress faced by public auditors also may lead to mental and physical distress which resulted to decrease in job performance. This study examines which potential factors of pressure that have a significant relationship to government auditors’ job performance. Factors to be test in this study are work overload, time pressure and social influence pressure. This current study contributes information and ideas to the management and academician in the theoretical and practical aspects. The respondents in this study are 203 government auditorsfrom government auditors in National Audit Department of Malaysia. The result of this study shows that there is no significant relationship on work overload to auditors’ job performance. However the result of this study found that factor of time pressure shown a positive significant relation on auditors’ job performance, while social influence pressure shown a negative significant relationship on auditors’ job performance.

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Explaining the influence of time budget pressure on audit quality in Sweden

Cited by 48 publications

References 62 publications

Auditors’ professional and organizational identities and commercialization in audit firms

Auditors’ professional and organizational identities and commercialization in audit firms

Reliance on the internal auditors’ work: experiences of Swedish external auditors

The Influence of Work Overload, Time Pressure and Social Influence Pressure on Auditors’ Job Performance

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