Jurnal Simpsoium Nasional Akuntansi IX (SNA 9)

Penghentian Prematur Atas Prosedur Audit

Suryanita Weningtyas

Alumni Fakultas Ekonomi Universitas Sebelas Maret

Doddy Setiawan

Fakultas Ekonomi Universitas Sebelas Maret

Hanung Triatmoko

Fakultas Ekonomi Universitas Sebelas Maret

Abstract

Premature sign off of audit procedure is one form of Reduced Audit Quality / RAQ behaviors. This act refers to falsely signed off a require audit step, which is not covered by other step, without completing the work or noting the omisson of the procedures but auditor dare to express opinion based on that procedures. Auditor can make wrong opinion to financial statement if he conducts such act. As a result, litigation risk faced by auditor will increase because of making mistake opinion. The objectives of this research are : first, knowing the sequence of audit procedure which most often signed off and second, testing the effect of time pressure, audit risk, materiality, review procedure and quality control on premature sign off of audit procedure.

The result of this research indicates that there are priority sequence of discontinued audit procedure in time pressure condition. The most audit procedure which often to be left is understanding business’s client and audit procedure which seldom to be left is physical examination. The logistic regression show that time pressure, audit risk, materiality, review procedure and quality control have an effect on premature signed off of audit procedure.

Key Words : Premature sign off, time pressure, audit risk, materiality, review procedure and quality control

Conclusion

Based on the above discussion, the researcher can conclude several things. Descriptive statistical analysis showed that there was premature termination of audit procedures performed by auditors who work in public accounting firm in small amounts. This is evident from the tabulation of data that shows 13% of auditors have been stopped prematurely on the audit procedures. The procedure has terminated the order as shown from the Friedman test. Thus, the hypothesis that there is a sequence of priority procedure is stopped in time pressure conditions can be proven. By looking at the mean rank of each audit procedures, it is known that the audit procedures that are often to be abandoned when time pressure is the understanding of the client’s business while the audit procedure that is rarely to be left is a physical examination.

Logistic regression results showed that all independent variables are time pressure, audit risk, materiality and review procedures and quality control significant effect on premature termination of audit procedures. Thus the alternative hypothesis the second, third fourth and fifth accepted. Or it can be said that the auditors who have a high time pressure are more likely to make premature termination of audit procedures, supporting research Alderman and Dietrick (1982), Raghunatan (1991), and C Willett and M. Page (1996), Coram, et al., (2000) Herningsih (2001), and Soobaroyen and Chengabroyan (2005). This study can prove that when auditors assess audit risk is low, the auditor should do more audit procedures so that the possibility of premature audit procedures will lower. This study also can prove that the level of materiality affect the premature termination, which can not be proven in research Herningsih (2001). Variable materiality and review procedures and quality control is negatively related to premature termination of audit procedures. Thus, if the lower the materiality level, the tendency to stop the higher the audit procedures, and vice versa and if the application of review procedures and quality control at the firm are less effective then the tendency to stop the higher the audit procedures, and vice versa. The test results of the review and quality control procedures This supports previous research done by Malone and Roberts (1996).

The best solution to overcome the problem of premature termination of audit procedures by the respondents is the strict supervision of all auditors, while according to the respondents who had considered premature termination of audit procedures, the best solution is to improve communication within the audit team.

Penghentian Prematur Atas Prosedur Audit
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