Abstract

http://ssrn.com/abstract=2356168
 


 



Dysfunctional Auditing Behaviour: Empirical Evidence on Auditors' Behaviour in Macau


Chun Yip Yuen


University of Macau - Faculty of Business Administration

Philip Law


University of Macau

Chan Lyu


University of Macau

Jenny Guan


University of Macau

November 18, 2013

Desmond C.Y. Yuen, Philip K.F. Law, Chan Lyu, Jie Qi Guan (2013) "Dysfunctional auditing behaviour: empirical evidence on auditors' behaviour in Macau". International Journal of Accounting and Information Management

Abstract:     
Purpose – The purpose of the study is to investigate the factors that may result in a high turnover rate of auditors in Macau. The factors considered include client importance, task complexity, time budget constraints, auditor independence and acceptance of dysfunctional behaviour by Macau's audit firms.

Design/Methodology/Approach – This study involved three stages. In the first stage, interviews were carried out with auditors from Big-4 (seven interviewees) and local non-Big-4 firms (three interviewees) in Macau to investigate the reasons for the high turnover rate amongst auditors in Macau. They were asked to speculate about common explanatory factors. The second stage involved 141 auditors from Big-4 and local non-Big-4 accounting firms who were asked to complete a questionnaire survey for the explanatory factors. A total of 135 usable questionnaires were included in the multiple regression data analysis. The third stage of research comprised follow-up interviews aimed at learning more about the reasons for dysfunctional behaviour.

Findings – This research provides valuable information for audit firms in Macau and will potentially help them to reduce their turnover rate and identify the factors affecting dysfunctional behaviour amongst auditors. The results extend the literature by focusing on the effect of perceived responsibility on professional responses to time budget pressures, task complexity, pressure from clients, and professional and ethical issues.

Practical Implications – The challenge facing auditors today is to expand their auditing practices and evolve standards for adequately monitoring the operations of business entities. The current high turnover rate alarms audit firms, which are concerned with training and the provision of sufficient resources to solve the problems that auditors face in the workplace.

Originality/Value – This is the first paper to examine the reason for turnover intentions in Macau. This study sheds light on the factors that contribute to individual auditor differences in the acceptance of dysfunctional behaviour that may result from the stressful nature of their duties.

Keywords: Accounting, Auditors, Auditors' behaviour in Macau, Auditor's independence, China, Client's importance, Dysfunctional auditing behaviour, Employees turnover, Task complexity, Time budget pressure, Turnover intention

JEL Classification: M41

Accepted Paper Series


Not Available For Download

Date posted: November 19, 2013  

Suggested Citation

Yuen, Chun Yip and Law, Philip and Lyu, Chan and Guan, Jenny, Dysfunctional Auditing Behaviour: Empirical Evidence on Auditors' Behaviour in Macau (November 18, 2013). Desmond C.Y. Yuen, Philip K.F. Law, Chan Lyu, Jie Qi Guan (2013) "Dysfunctional auditing behaviour: empirical evidence on auditors' behaviour in Macau". International Journal of Accounting and Information Management. Available at SSRN: http://ssrn.com/abstract=2356168

Contact Information

Chun Yip Yuen (Contact Author)
University of Macau - Faculty of Business Administration ( email )
Macau
Philip Law
University of Macau ( email )
Macau
Chan Lyu
University of Macau ( email )
P.O. Box 3001
Macau
Jenny Guan
University of Macau ( email )
Macau
Feedback to SSRN


Paper statistics
Abstract Views: 170

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.250 seconds