Investigating and Evaluating Performance Motivation Bias in Auditors under Time Budget Pressure (Case Study: Auditors of the Court of Iran's Audit)

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran.

2 Professor, Departmentof Accounting, Shiraz University, Shiraz, Iran.

Abstract

Subject and Purpose of the Article: The audit quality of the Auditors of the Supreme Audit Court is of particular importance and its enhancement will improve the performance of the government. Recourse to non-professional affairs is one of the most common ways to deal with time budget pressure in auditing. These behaviors and trends that are the result of time budget pressure directly or indirectly affect the quality of audit work. Auditors use different methods to improve their performance under time budget pressure. The present study describes a bias in performance motivation that auditors use to improve their performance.
Research Method: This research is a survey type and the research tool is a questionnaire. The tested sample includes 380 auditors of the Court of Audit who with different experiences evaluated the effectiveness of the client's internal control system as one of the auditing steps under high and low time budget pressure.
Research Findings: The results showed that increasing the time pressure on auditors for using the motivation assessment leads to an increase in performance, and an auditor's experience also has a direct relation with this trend. The results show that less experienced auditors, under high time budget pressure, have reported negative  information about controls as less relevant.
Conclusion, Originality and its Contribution to the Knowledge: The results highlight the importance of employing experienced auditors under high time budget pressures to reduce the effects of using performance motivation assessments.
 

Keywords


اکبری، محمدعلی. (1378). رابطه محدودیت زمانی وساختار برنامه حسابرسی بر عملکرد و اجرای حسابرسی. پایان­نامه کارشناسی ارشد حسابداری، دانشگاه علامه طباطبایی.
برزیده، فرخ و خیراللهی، مرشید. (1390). مسئولیت پاسخگویی، فشار زمانی و کتمان شواهد حسابرسی. دانش حسابرسی، 11(45)، 4-27.
حیرانی، فروغ؛ وکیلی فرد، حمیدرضا؛ بنی مهد، مهدی و رهنمای رودپشتی، فریدون. (1395). تأثیر شخصیت حرفه­ای­گرا، ضداجتماعی و بیش اعتمادی حسابرسان بر قضاوت آن­ها در حل تعارض میان حسابرس و مدیریت. فصلنامه حسابداری مالی، 8(32)، 106-143.
خواجوی، شکراله و نوشادی، میثم. (1388). تأثیر تجربه و نقش آن در قضاوت موضوعات ساختار نیافته حسابرسی. تحقیقات حسابداری، 3، 120-110.
رابینز، استیفن پی. (1373). رفتار سازمانی (چاپ اول). ترجمه علی پارسائیان و محمد اعرابی، تهران: نوبهار.
سید جوادین، سیدرضا. (1386). تئوری های مدیریت (چاپ سوم). تهران: نگاه دانش.
سیرانی، محمد؛ خواجوی شکراله و نوشادی، میثم. (1388). تأثیر تجربه و پیچیدگی موضوعات حسابرسی بر قضاوت حسابرس. فصلنامه بررسی­های حسابداری و حسابرسی، 55، 50-35.
شمس‌زاده، ب؛ سیف، ا. و داودآبادی فراهانی، ح. (1395). بررسی رابطه بین ویژگی‌های مؤسسه حسابرسی و شرکا حسابرسی با کیفیت حسابرسی. مجله علمی پژوهشی دانش حسابداری مالی، 1، 156-135.
صفرزاده، محمد حسین؛ سجادی، سید حسین و شعبانی، محیا. (1399). تأثیر تیپ شخصیتی بر کیفیت حسابرسی (مطالعه موردی: حسابرسان دیوان محاسبات ایران). دوفصلنامه حسابداری دولتی ایران، 6(2)، 168-151.
کرمی، غلامرضا. وکیلی فرد، حمیدرضا و مزینانی، مهدی. (1395). بررسی ارتباط بین فشار زمانی، پیچیدگی کار و اثربخشی حسابرسی در دیوان محاسبات کشور. دانش حسابرسی، 16(63)، 33-5.
کمیته تدوین استانداردها. (1389). استانداردهای حسابرسی. تهران: سازمان حسابرسی.
مرادی، مهدی؛ رستمی، امین و اباذری، زهره. (1395). بررسی عوامل مؤثر‌ بر اعمال رفتارهای ناکارآمد مؤثر‌ بر اعمال رفتارهای ناکارآمد حسابرسان. فصلنامه حسابداری مالی، 8(30)، 64-40.
مهرانی، ساسان و نعیمی، مهدیس. (1382). تئوری اخلاقی و تأثیر فشار بودجه زمانی بر رفتار حسابرسان مستقل. فصلنامه بررسی­های حسابداری و حسابرسی، 32، 63-41.
مهرانی، ساسان. (1379) .تأثیر فشار بودجه زمانی بررفتارحسابرسان مستقل تحت تئوری عدالت نسبی. رساله دکتری حسابداری دانشگاه تهران.
نظری­پور، محمد. (1396). ضرورت استقرار حسابرسی عملکرد از دیدگاه حسابرسان بخش عمومی. دو فصلنامه حسابداری دولتی، 3(2)، 79-92.
نعیمی، مهدیس. (1381). بررسی تأثیر فشار زمان بر رفتار حسابرسان مستقل. پایان­نامه کارشناسی ارشد حسابداری، دانشکده اقتصاد و حسابداری دانشگاه آزاد اسلامی، واحد تهران مرکزی.
نمازی، محمد؛ بایزیدی، انور و جبارزاده کنگرلویی، سعید. (1390). بررسی رابطه بین کیفیت حسابرسی و مدیریت سود شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران. تحقیقات حسابداری و حسابرسی، 3(9)، 21-4.
هرمزی, ش؛ نیکو مرام, ه؛ رویایی, ر و رهنمای رودپشتی, ف. (1395). بررسی تأثیر سوگیری‌های روانشناختی بر تردید حرفه‌ای حسابرس. پژوهش های تجربی حسابداری, 6(4),148-123.
 
 
 
 
Abdolmohammadi, M.J. & Wright, M. (1987). An Examination of the Effects of Experience and Task Complexity on Audit Judgments. The Accounting Review, 62, 1-13.
Akbari, M.A. (2000). The Relationship between Time Constraints and the Structure of the Audit Program on Audit Performance and Execution. Master Thesis in Accounting, Allameh Tabatabai University (In Persian).
Barrainkua, I. & Espinosa-Pike, M. (2015). New Insights into under Reporting of Time: The Audit Partner Context. Accounting, Auditing & Accountability Journal, (4)28, 494-514.
Barzideh, F. & Khairollahi, M. (2012). Accountability, time pressure and concealment of audit evidence. Auditing Knowledge, (45)11, 4-27 (In Persian).
Bayat, A., Jodeiri, J. (2020). Investigating the Relationship between Weaknesses with the Importance of Internal Control and Evidence of Actual Performance Manipulation in Companies Listed in the Tehran Stock Exchange. Accounting and Auditing Research, 12(47),101-114.
Bierstaker, J. & Wright, A. (2005). The Effect of Partner Preferences on the Development of Risk-Adjusted Program Plans. Advances in Accounting, 21, 1-23.
Bonner, S., Libby, R. & Nelson, M.W. (1996). Using Decision Aid to Improve Auditors Conditional probability judgment. The Accounting Review, 71, 221-240.
Bonner, S.E. & Pennington, N. (1991). Cognitive Processes and Knowledge as Determinants of Auditor Expertise. Journal of Accounting Literature, 10, 1-50.
Bonner, S.E. (1990). Experience Effects in Auditing: The Role of Task-Specific knowledge. The Accounting Review, 66, 72-92.
Choo, F. & Firth, M. (2003). The Effect of Time Pressure on Auditors’ Configural Information Processing. International Journal of Auditing, (2)1, 21-33.
Christensen, B.E., Glover, S.M., Omer, T.C & Shelley, M.K. (2014). Understanding Audit Quality: Insights from Audit Professionals and Investors. Working paper, Texas A&M University, Brigham Young University and the University of Nebraska–Lincoln
Chung, J. & S. Monroe. (2000). The Effects of Experience and Task Difficulty on Accuracy and Confidence Assessments of Auditors. Accounting and Finance, (40), 135-152.
Cianci, A.M. & Bierstaker, J. (2009). Auditors Efficiency Motivated Evaluation. Advances in Accounting, 25, 20-27.
Coram, P., Ng, J. & Woodliff, D. (2004). The Effect of Risk of misstatement on the Propensity to Commit Reduced Audit Quality Acts Under Time Budget Pressure. Auditing: A Journal of Practice & Theory, (2) 23, 159-167.
DeZoort, F.T. & Lord, A.T. (1997). A Review and Synthesis of Pressure Effects Research in Accounting. Journal of Accounting Literature, 16, 28-85.
Donnelly, D., Quirin, J. & O'Bryan, D. (2003). Auditor Acceptance of Dysfunctional Behavior: An Explanatory Model Using Auditors' Personal Characteristics. Behavioral Research in Accounting, 15, 87-110.
Elder, R. & Allen, R. (2003). A Longitudinal Field Investigation of Auditor Risk Assessments and Sample Size Decisions. The Accounting Review, 983-1002.
Fredrick, D. & R. Libby. (1986). Expertise and Auditors Judgments of Conjunctive Events. Journal of Accounting Research (forthcoming, Autumn).
Gibbins M. (1994). Proposition About the Psychology of Professional Judgment in Public Accounting. Journal of Accounting Research, (22)1, 103-125.
Glover, S.M., Hansen, J.C. & Seidel, T.A. (2015). The Effect of Deadline Imposed Time Pressure on Audit Quality. Ssrn. February 6, 2015.
Glover, S.M., Prawitt, D.F., Wilks, T.J. & McDaniel, L. (2005). Why Do Auditors Over-Rely on Weak Analytical Procedures? The Role of Outcome and Precision. Auditing: A Journal of Practice & Theory, 24, 197-233.
Hales, J.W. (2002). Understanding Bias and Dispersion in Forecasts: The Role of Motivated Reasoning. Working paper, Cornell University.
Heyrani, F., Vakilifard, H., Banimahd, B. & Rahnamayeh Roudposhti, F. (2017). The Effect of Professionalism, Antisocial and Overconfidence on Their Judgments to Resolve the Conflict Between the Auditor and Management. Quarterly Financial Accounting Journal, (32)8, 106-143 (In Persian).
Hormozi, S., nikoomaram, H., royaee, R., rahnama roodposhti, F. (2017). The Effects of Psychological Biases on Auditors' Professional Skepticism. Empirical Research in Accounting, 6(4), 123-148. (In Persian).
Johnstone, K.M., Bedard, J.C. & Biggs, S.F. (2002). Aggressive Client Reporting: Factors Affecting Auditors' Generation of Financial Reporting Alternatives. Auditing: A Journal of Practice & Theory, (21)1, 47-65.
Karami, G., Vakilifard, H. & Mazinani, M. (2016). Investigating the Relationship between Time Pressure, Complexity of Work and Audit Effectiveness in the Court of Audit. Auditing Knowledge, (63)16, 5-33 (In Persian).
Kelley, T., Margheim, L. & Pattison, D. (1999). Survey on the Differential Effects of Time Deadline Pressure Versus Time Budget Pressure on Audit Behavior. The Journal of Applied Business Research, (15) 4, 117-127.
Khajavi, S. & Noshadi, M. (1388). The Impact of Experience and Its Role in Judging Unstructured Audit Issues. Accounting Research, 3, 120-110 (In Persian).
Kruglanski, A.W. (1996). Motivated social cognition: Principles of the interface. In E.T. Higgins & A.W. Kruglanski (Eds.), Social psychology: Handbook of basic principles (pp. 493-520). New York: Guilford Press.
Kunda, Z. (1995). The Case for Motivated Reasoning. Psychological Bulletin, 108, 480-498.
Kunda, Z. (2002). Social cognition: making sense of people. Cambridge, MA: MIT Press.
Lehmann, C. & Norman, C.S. (2006). The Effects of Experience on Complex Problem Representation and Judgment in Auditing: An Experimental Investigation. Behavioral Research in Accounting, 18, 65-83.
Libby, R. (1995). The role of knowledge and memory in audit judgment, judgment and decision-making research in accounting and auditing. Cambridge University Press, New YORK, NY, 176-206.
Majid, J. & Asse, A. (2018). Time Budget Pressure and turnover Intention with Dysfunctional Accountant Behavior. International Journal of Economics Management and Social Science, (1)1, 9-16. 
Malone, C.F. & Roberts, R.W. (1996). Factors Associated with the Incidence of Reduced Audit Quality Behaviors. Auditing: A Journal of Practice & Theory, (15)2, 49-64.
Manatap, B.L.G. (2018). The Influence of Audit Time Budget Pressure on Reduced Audit Quality Behavior. Journal of Accounting Research, Organization and Economics, (1)1, 57-64.
McDaniel, L. (1990). The Effects of Time Pressure and audit program Structure on Audit Performance. Journal of Accounting Research, 28, 267-286.
Mehrani, S. & Naeemi, M. (2004). Ethical Theory and the Effect of Time Budget Pressure on the Behavior of Independent Auditors. Journal of Accounting and Auditing Reviews, 32, 41-63 (In Persian).
Mehrani, S. (2000). The Effect of Time Budget Pressure on the Behavior of Independent Auditors Under the Theory of Relative Justice. PhD. Dissertation in Accounting, University of Tehran (In Persian).
Moradi, M., Rostami A. & Abazari, Z. (2016). Investigating the Determinants of Dysfunctional Auditing Behaviors. quarterly financial accounting journal, (30)8, 40-64 (In Persian).
Moreno, K. & Bhattacharjee, S. (2003). The Impact of Pressure from Potential Client Business Opportunities on the Judgments of Auditors Across Professional Ranks. Auditing: A Journal of Practice & Theory, (22)1, 13-28.
Naimi, M. (2003). Investigating the Effect of Time Pressure on The Behavior of Independent Auditors. Master Thesis in Accounting, Faculty of Economics and Accounting, Islamic Azad University, Central Tehran Branch (In Persian).
Namazi, M., Bayazidi, A. & Jabbarzadeh, S. (2011). Investigating the Relationship between Audit Quality and Earning Management of Companies Listed in Tehran Stock Exchange. Journal of Accounting Research, (9)3, 4-21 (In Persian).
Nazaripour, M. (2017). The Nessecity of Establishing Performance Audit from the Viewpoint of Public Sector Auditors. Journal of Governmental Accounting, (2)3, 79-92 (In Persian).
Robbins, S.P. (1995). Organizational Behavior (First Edition). Translated by Ali Parsaian and Mohammad Arabi, Tehran: Nobahar (In Persian).
Robertson, J.C. (2007). Staff Auditor Reporting Decisions Under Time Deadline Pressure”. Managerial Auditing Journal, (22)4, 340-353.
Safarzadeh, M.H., Sajadi, S.H. & Shabani, M. (2020). The Effects of Personality Type on the Audit Quality (Case Study: Evidence from Supreme Audit Court Auditors of Iran). Journal of Governmental Accounting, (2)5, 151-168 (In Persian).
Sayrani, M., Khajavi, S. & Noshadi, M. (2009). An Examination of the Effects of Experience and Task Complexity on Audit Judgments. Accounting and Auditing Review, 16(2), 35-50 (In Persian).
Seyed Javadin, S.R. (2008). Management Theories (Third Edition). Tehran: Knowledge Look (In Persian).
Shamszadeh, B., Seif, A. & Davodabadi Farahani, H. (2016). Studying Relationship between Characteristics of Audit Institutions and Audit Partners with Audit Quality. Journal of Financial Accounting Knowledge, (1)3, 135-186 (In Persian).
Shelton, S.W. (1999). The Effect of Experience on the Use of Irrelevant Evidence in Auditor Judgment. The Accounting Review, 217-224.
Standards Development Committee. (2010). Audit Standards. Tehran, IR: Audit Organization (In Persian).
Tusheng, X., Chunxiao, G. & Chun, Y.(2020). How audit effort affects audit quality: An audit process and audit output perspective.China Journal of Accounting Research.(13)1, 109-127.
Umar, A. & Anandarajan, A. (2004). Auditors' Independence of Judgment Under Pressure. Internal Auditing, (19)1, 22-32.