The Effects of Time Budget Pressure and Intentionality on Audit Supervisors' Response to Audit Staff False Sign‐Off

16 Pages Posted: 5 Feb 2013

See all articles by Troy A. Hyatt

Troy A. Hyatt

Seattle University

Mark H. Taylor

University of South Florida, Muma College of Business, Lynn Pippenger School of Accountancy

Date Written: March 2013

Abstract

Based on theory from the psychology literature and results from prior false sign‐off research, we develop hypotheses and then conduct an experiment to assess the reporting intentions of audit supervisors who discover that a staff member under their supervision has committed false sign‐off. The experiment manipulated the level of time budget pressure on the audit engagement and the staff member's intentionality. Results indicate that audit supervisors are more likely to report the false sign‐off when (1) the audit staff member was working under conditions of low time budget pressure versus high time budget pressure and (2) the staff member committed the false sign‐off intentionally versus unintentionally as a result of confusion over what was expected. The paper concludes with a discussion of its limitations, suggestions for future research, as well as implications for practice.

Keywords: false sign‐off, audit quality, time budget pressure, intentionality

Suggested Citation

Hyatt, Troy A. and Taylor, Mark H., The Effects of Time Budget Pressure and Intentionality on Audit Supervisors' Response to Audit Staff False Sign‐Off (March 2013). International Journal of Auditing, Vol. 17, Issue 1, pp. 38-53, 2013, Available at SSRN: https://ssrn.com/abstract=2211961 or http://dx.doi.org/10.1111/j.1099-1123.2012.00456.x

Troy A. Hyatt (Contact Author)

Seattle University ( email )

900 Broadway
Department of Accounting
Seattle, WA 98122
United States
206-296-5815 (Phone)
206-296-2464 (Fax)

Mark H. Taylor

University of South Florida, Muma College of Business, Lynn Pippenger School of Accountancy ( email )

4202 E. Fowler Avenue
Tampa, FL 33620
United States
(813) 974-6516 (Phone)

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