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The effects of situational and dispositional factors on audit quality threatening behaviour: exploring the moderating influence of religiosity

Shilin Liu (Graduate School of Business, Universiti Malaya, Kuala Lumpur, Malaysia)
Noor Adwa Sulaiman (Department of Accounting, Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur, Malaysia)
Suhaily Shahimi (Department of Accounting, Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur, Malaysia)

Asian Review of Accounting

ISSN: 1321-7348

Article publication date: 14 December 2023

Issue publication date: 24 September 2024

337

Abstract

Purpose

Using attribution theory, this study examined the effects of situational factors [time budget pressure (TBP), organisational ethical culture (OEC) and quality control procedures (QCPs)] and dispositional factors [auditor professional commitment (APC) and internal locus of control (ILOC)] on audit quality threatening behaviour (AQTB). In addition, it observed the moderating role of religiosity in the relationship between situational and dispositional factors and AQTB.

Design/methodology/approach

A total of 189 external auditors responded to the survey questionnaire. This study employed structural equation modelling via SmartPLS to analyse the proposed model.

Findings

The results documented that the OEC and QCPs situational factors were negatively related to the incidence of AQTB, whilst TBP was positively linked to the incidence of AQTB. Dispositional factors APC and ILOC were negatively connected to AQTB. Furthermore, the findings recorded the moderating effect of religiosity on most of the situational and dispositional factors related to AQTB.

Practical implications

Regulators and accounting firms' efforts to promote high audit quality (AQ) may consider the theological/religious lens and reinforce ethical culture and quality control to reduce AQTB.

Originality/value

The findings provide further insights into situational and dispositional factors that may cause or impede the incidence of AQTB in auditing practices, as well as the moderating role of religiosity in curbing AQTB.

Keywords

Acknowledgements

The authors would like to thank the respondents who participated in this research.

Citation

Liu, S., Sulaiman, N.A. and Shahimi, S. (2024), "The effects of situational and dispositional factors on audit quality threatening behaviour: exploring the moderating influence of religiosity", Asian Review of Accounting, Vol. 32 No. 4, pp. 667-692. https://doi.org/10.1108/ARA-11-2022-0274

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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