Carlos, Danielle Kasmer Castro, Pauline Kisha

Castelo, Chelsea Anabelle Catemprate, Mitzi

Castro, Michael Joe 4A3

Analysis of the Effects of Time-Budget Pressure on Reduced Audit Quality Practices of Auditors on Selected Auditing Firms in the Philippines

Author/s Title Variables used Research Objectives Locus/Country Research Methods/Design Findings of the study
Year Journal/Vol/Issue/pp

Hajiha, Z., & Relation of Audit Time -Audit time budget To study the relation Iran Data was gathered using a The testing of the assumptions
Khodamoradi, Budget Pressure, pressure (TBP) between audit time standard questionnaire by 5 given in the study showed that:
E. Audit Quality, and budget pressure, audit options Lickert Spectrum.
(2016). Underreporting of Data was analyzed using (1) that there is a significant
-Audit quality (AQ) quality, and
Time. descriptive method, where and negative relation
International Journal underreporting of time they used frequency tables between audit time
of Applied Business -Underreporting of among the official and chart and inferential budget pressure and audit
and Economic time (URT) auditors employed in statistical methods, such as quality,
Research, Volume Audit Organization and Pearson Correlation Test and
14, Issue No. 10 private sector. structural equations, were (2) and there is a significant
also used. Excel and SPSS21 and positive relation
were used for calculations between audit time
and extraction of outputs. budget pressure and
underreporting of time.

Nehme, Dysfunctional -Underreporting of To gain a better Kuwait The researchers gathered The study found that:
Mutawa, & Jizi Behavior of External chargeable hours understanding of data from 74 external auditors (1) auditors are aware of
(2016) Auditors the Collision (URCH) factors leading to from Big 4 audit firms by dysfunctional behavior in
of Time Budget and
dysfunctional behavior devising a self-administered the audit environment;
Time Deadline
Evidence from a -Premature sign-off of auditors questionnaire. The (2) auditors believe that
Developing Country. of auditing questionnaire attempted to dysfunctional behavior
Journal of Developing procedures (PSO) assess auditors behavior in should not be exercised
Areas, Volume 50, -Auditors behavior relation to time deadline and when facing time budget
Issue No. 1, page
 373-388 time budget pressure. The pressure;
-Time deadline researchers used URCH and (3) auditors are not willing to
(TD) PSO as proxies to quantify manipulate and switch
auditors behavior. chargeable to non-
-Time budget chargeable hours;
pressure (TBP) (4) experience factor is not
perceived to play a major
role in minimizing
auditors' dysfunctional
behavior; and
(5) auditors do not believe
that they should
underreport chargeable
hours when facing time
budget pressure.

McNamara, S. Time Budget -Time budget To examine the New Zealand To obtain comparable data, The results obtained from the
& Pressure and Auditor
Liyanarachchi, Dysfunctional environment perceptions of four the researchers adopted a study revealed that:
G. Behaviour Within an types of audit staff modified version of Otley and 1. Time budget attainability
(2008). Occupational Stress -Dysfunctional (juniors, seniors, Pierce's questionnaire (TBA) has a negative
Model.
behavior/Reduced managers and method. A random sample of effect on the occurrence
Accountancy
Business and the Audit Quality partners) employed in 594 auditors from the New of reduced audit quality
Public Interest, Practices (RAQPs) two types of audit firms Zealand Institute of Chartered practices (RAQPs).
Volume 7, Issue No. - Big-Four and Non Accountants (NZICA) with 2. Time budget attainability
1, pp. 1-43 -Time budget Big-Four different levels of auditing (TBA) has a negative
attainability experience were included. effect on the occurrence
Collected data were then of underreporting of time
analyzed using the (URT).
categorical regression 3. The type of auditing firm
method with optimal scaling has a significant influence
(CATREG) Version 2 (SPSS on the perception of
Version 11. 2005). auditors on time budget
attainability. Auditors
working for Non-Big Four
auditing firms recognize
time budgets as being
easier to accomplish than
those employed by the
Big-Four auditing firms.
4. Client fees have a
negative effect on the
perception of auditors on
time budget attainability
(TBA).
Pace, G. Effects Of Maltese -time pressure To discuss the Malta Online questionnaires were Findings reveal that:
(2016) Auditors Time -audit quality relationship between distributed to 164 Maltese
Pressure On Ethics -Reduced Audit the time budget auditors and were measured (1) There is a significant
And Audit Quality pressures, the ethical positive direct effect
Quality Behaviour using the five-level scale of
culture and audit between reduced audit
-Under-Reporting quality amongst the Likert Scales. Excel and quality behaviour and
of Time Maltese auditors, Statistical Package for Social under-reporting time and
working within an audit Sciences (SPSS) Version time pressure.
firm 22.0 were used to analyze the (2) Ethical culture has a
data collected. It also used different effect on these
Cronbach Alpha Test, types of behaviour, as
whilst it has a significant
Friedman Test, Spearmans
negative effect on
Correlation, and Multiple reduced audit quality, it
Regression Model does not have any effect
on under-reporting of
time.

Al Kautsar, M. The Influence of Time -Time Budget To examine if time Indonesia The sample size of the study There are two hypotheses in this
(2016) Budget Pressure on Pressure budget pressure would is 183 Public Accounting Firm study :
Dysfunctional Audit -Dysfunctional influence the presence found in Indonesia. The H0 : Time Budget Pressure has
Behavior. South East
Audit Behavior of dysfunctional audit selection of these firms was not an influence on dysfunctional
Asia Journal of
Contemporary behavior done using random sampling audit behaviour
Business, Economics method. H1 : Time Budget Pressure has
and Law, Vol. 10, In other to gather the data, an influence on dysfunctional
Issue 1 (Aug.) various method of data audit behaviour
collection was made such as
giving of questionnaire, test The findings of this study
and structured interview. The showed that H0 was ignored
questionnaire served as the because according to the
 primary source of information, regression analysis, time budget
while the test and interview pressure influences the
served as a supporting dysfunctional audit behavior
information to strengthen the
claims found in the
questionnaire.
After the collection of data,
regression was used to
analyzed the data.

References:

Al Kautsar, M. (2016). The Influence of Time Budget Pressure on Dysfunctional Audit Behavior. South East Asia Journal of Contemporary Business, Economics
and Law, 10(1).

Hajiha, Z., & Khodamoradi, E. (2016). Relation of audit time budget pressure, audit quality, and underreporting of time. International Journal of Applied Business
and Economic Research, 14(10).

McNamara, S. & Liyanarachchi, G. (2008). Time budget pressure and auditor dysfunctional behaviour within an occupational stress model. Accountancy Business
and the Public Interest, 7(1), 1-43.

Nehme, R., Mutawa, A. A., & Jizi, M. (2016). Dysfunctional behavior of external auditors the collision of time budget and time deadline evidence from a developing
country. Journal of Developing Areas, 50(1), 373-388.

Pace, G. (2016). Effects of Maltese auditors time pressure on ethics and audit quality. Retrieved from https://www.um.edu.mt/library/oar/handle/123456789/13302.