Empirical Study on Perceived Auditor Quality Reduction Behaviour Mediated by Job Satisfaction Under the Context and Impact of COVID-19

Lim, Cong Hong (2022) Empirical Study on Perceived Auditor Quality Reduction Behaviour Mediated by Job Satisfaction Under the Context and Impact of COVID-19. Masters thesis, Tunku Abdul Rahman University College.

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Abstract

Audit failure is what contributes to corporate scandals that have been occurring all around the world and such a failure can derive from audit quality reduction behaviour possessed by the auditors in the audit industry. Thus, this study intends to investigate the relationship between job context factors and perceived audit quality reduction behaviour, as well as how job satisfaction would mediate the relationship between job context factors and perceived audit quality reduction behaviour. This study adopts non-parametric research methodology with the aid of smartpls, conducting partial least square analysis on the research framework with junior rank auditors. Herzberg’s theory remains applicable in this era. However, different research setting should adopt different theoretical approaches or perspectives because it was found that compensation is much more significant when compared to human capital training in this study and the hygiene factor of compensation which states that it does not provide job satisfaction may not be applicable in the midst of pandemic when there is a change of context which will shape the mindset of mankind. In conclusion, the study has found that human capital training and perceived compensation can reduce perceived audit quality reduction behaviour during the pandemic whilst other factors such as time pressure and role ambiguity do not contribute to perceived audit quality reduction behaviour. Additionally, it was found that the job context factors such as time pressure, role ambiguity, perceived compensation and role ambiguity has a significant relationship with job satisfaction but it does not mediate relationship between job context factors and perceived audit quality reduction behaviour.