Audit firms, just like any other business Time budget is an important time allocation tool in

organizations, are minimizing costs and maximizing
efficiency to remain competitive. Dynamic and fast
pace changes led the competition among auditing
firms to increase. As the competition rises, problems
involving the practice of audit also surface. One of
these is the presence of time-budget pressure on the
quality of audit an auditor presents.
audit engagements because it provides auditors an
overview of the amount of time required to
complete an audit. This becomes a burden to
auditors when an audit firm allocates a scarce
number of audit hours to be used by auditors to
complete specified audit procedures which then
leads to TBP.

Auditors under TBP may react in two different ways
– functional or dysfunctional. (Dezoort & Lord, as
cited in Svanberg & Öhman, 2013). Auditors who
react functionally view TBP as a positive factor that
motivates them to work harder without impairing
the audit quality. On the other hand, auditors who
react with a dysfunctional behavior find reduced
RAQ practices a quick fix to finish the work on time,
which leads to presenting audit reports with RAQ.
Studies about TBP and RAQ practices provided varying
results. While most of the studies showed that TBP
significantly affects RAQ practices, other studies such
as Nehme, Mutawa, and Jizi (2016) found that the
auditors, under TBP, did not exercise RAQ practices.
With that in mind, this paper is aimed to analyze the
impact of time budget pressure as a factor that affects
the occurrence of reduced audit quality practices
among the selected auditors in the Philippines.

The primary objective of the study is to analyze the impact of time

budget pressure as a factor that influences the occurrence of reduced
audit quality (RAQ) practices among the selected auditors in Manila.
Consequently, the study seeks to answer the following question:

Is time budget pressure a factor affecting the incidence of premature

termination of an audit task by an auditor?

Is time budget pressure a factor affecting the incidence of accepting

weak client explanation by an auditor?