DYSFUNCTIONAL AUDITOR BEHAVIOR: THE CAUSAL FACTORS AND IMPLICATIONS FOR AUDIT QUALITY

Abstract

Dysfunctional auditor behavior (DAB) is one of the serious threats to audit quality and integrity of financial statements. This study aims to systematically examine the factors that cause dysfunctional auditor behavior and its impact on audit quality, using the Systematic Literature Review (SLR) method of 20 relevant national and international journal articles. The study results show that DAB is triggered by various factors, including time budget pressure, Machiavellian traits, external locus of control, turnover intention, and job stress. These factors encourage auditors to violate audit procedures such as premature sign-off, underreporting of time, and ignoring audit evidence. This behavior has a direct impact on reducing audit quality and disrupting the auditor's supervisory function as an independent agent in agency theory. This study concludes that to improve audit quality, an organizational strategy is needed that suppresses the potential for DAB through strengthening supervision, fostering professional ethics, and structuring work culture in public accounting firms.