Dysfunctional behavior of external auditors the collision of time budget and time deadline evidence from a developing country

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dc.contributor.author Nehme, Rabih
dc.contributor.author Al Mutawa, Abdullah
dc.contributor.author Jizi, Mohammad
dc.date.accessioned 2021-02-05T12:34:18Z
dc.date.available 2021-02-05T12:34:18Z
dc.date.copyright 2016 en_US
dc.date.issued 2021-02-05
dc.identifier.issn 0022-037X en_US
dc.identifier.uri http://hdl.handle.net/10725/12463
dc.description.abstract The general goal behind this research is to gain a better understanding of factors leading to dysfunctional behavior of auditors. The role of auditors has been a controversial issue especially after the recent accounting scandals (WorldCom, Enron, Paramalat SpA, Waste Management Inc., Xerox Corporation, and Société Générale). In relation to these scandals and lawsuits, a question is frequently asked "where were the auditors?" The survey we offer up for research is made up of 34 questions that are designed to analyse the perception of auditors and the cause of dysfunctional behavior. The object of this research is comprised of auditors positioned and employed at the Big Four audit firms in Kuwait. The selected sample is comprised from auditors at different levels ranging from audit trainees to audit partners. The so-called stakeholder theory talks about the relationship between audit behavior and audit firm practices with time deadlines and time budgets involved. It is generally accepted that the more auditors align their interests with firms' measures and practices, the more a firm is capable of meeting general goals and objectives. Consequently, this may result in a less dysfunctional workplace conduct. Dysfunctional behavior (DB) is analysed against two signalling proxies of dysfunctional behavior; premature sign-off and under reporting of chargeable time. DB is analysed against time budget and time deadline pressures. The results suggest that the general belief among auditors is that the profession of accountancy predetermines their tendency to commit certain patterns of dysfunctional behavior. The results indicate that auditors understand that dysfunctional behavior is exercised by the majority of auditors. Dysfunctional behaviour is exercised with intention and it is not committed out of ignorance. One of the interesting findings is that auditors, at all levels, are concerned about their reputation. Thus, dysfunctional behavior is exercised, to a certain extent, without harming the quality of the audit work. Having our investigation conducted at the Big Four audit firms, we have come to the conclusion that there is a general difference in behavior patterns among perceptions of dysfunctional behavior and normal skeptic professional behavior. Audit firms should continuously conduct workshop and training events related to dysfunctional behavior. It is revealed that some auditors are not aware that certain practices are considered dysfunctional behavior or not. This research work can be used to aid audit practitioners to mitigate audit dysfunctional behavior. It highlights certain type of practices that is exercised in an improper way. en_US
dc.language.iso en en_US
dc.title Dysfunctional behavior of external auditors the collision of time budget and time deadline evidence from a developing country en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 199710210 en_US
dc.author.idnumber 200201121 en_US
dc.author.department Finance And Accounting en_US
dc.description.embargo N/A en_US
dc.relation.journal The Journal of Developing Areas en_US
dc.journal.volume 50 en_US
dc.journal.issue 1 (Winter 2016) en_US
dc.article.pages 373-388 en_US
dc.keywords Big Four en_US
dc.keywords Dysfunctional behavior en_US
dc.keywords Time budget en_US
dc.keywords Time deadline en_US
dc.identifier.doi https://doi.org/10.1353/jda.2016.0003 en_US
dc.identifier.ctation Nehme, R., Al Mutawa, A., & Jizi, M. (2016). Dysfunctional behavior of external auditors the collision of time budget and time deadline evidence from a developing country. The Journal of Developing Areas, 50(1), 373-388. en_US
dc.author.email rabih.nehme@lau.edu.lb en_US
dc.author.email mohammad.jizi@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url https://muse.jhu.edu/article/609341 en_US
dc.orcid.id https://orcid.org/0000-0002-1028-6001 en_US
dc.orcid.id https://orcid.org/0000-0002-1911-8215 en_US
dc.author.affiliation Lebanese American University en_US

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