THE EFFECT OF TIME BUDGET PRESSURE AND FEE AUDIT ON AUDIT QUALITY AT PUBLIC ACCOUNTING FIRMS IN BANDUNG CITY

Abstract

The increasing number of cases involving violations of professional auditing standards has raised concerns regarding the quality of audit services and public confidence in audited financial statements. hese conditions reveal that there are a number of factors affecting the quality of audits such as time budget pressure and audit fee. This paper seeks to determine the effect of time budget pressure and audit fee on audit quality in Public Accounting Firms in Bandung. This research adopted an experimental research design through which primary data was gathered using questionnaires. The study included 62 auditors in ten Public Accounting Firms in Bandung. Data was collected using questionnaires with a five-point Likert scale and analyzed using multiple linear regression in SPSS. The results reveal that time budget pressure affects the quality of audit significantly. In the same way, audit fee affects audit quality significantly. In addition, time budget pressure and audit fee combined together significantly affect audit quality. The coefficient of determination reveals that the two variables account for 55.5% of the variation in audit quality, while 44.5% is accounted for by other factors not covered by this study. The results of this study confirm the predictions of the Attribution Theory, which indicates that environmental and economic determinants are significant in shaping the actions of auditors and their impact on audit quality. The results will be useful in practical matters related to audit time and audit fee determination.