Rizka Arinjani, M. Nur A. Birton, Bunga Cathalia Jingga

Menelaah Premature Sign-Off Prosedur Audit melalui Relasi Kuasa Michel Foucault

Introduction

Menelaah premature sign-off prosedur audit melalui relasi kuasa michel foucault. Studi ini menelaah pemicu premature sign-off audit akibat dominasi kuasa mitra dan klien, menggunakan relasi kuasa Foucault. Memberikan insight integritas auditor & pengawasan regulator.

Abstract

Objectives: This study aims to understand auditors’ behavior when facing problems in the audit process and to identify factors triggering premature sign-off. Design/method/approach: The approach used is qualitative in a critical paradigm with the Interpretative Phenomenological Analysis (IPA) method and Michel Foucault's theory of power relations as the analytical tool. Data were collected through semi-structured interviews with experienced auditors from Public Accounting Firms (PAFs) in South Jakarta. Data validity was ensured through member checking, source triangulation, and an audit trail. Results/findings: The results of the study indicate that premature sign-off behavior is triggered by the dominance of power from partner-level auditors and clients. This power relationship is evident through direct instructions to ignore procedural steps such as Test of Control (ToC), procedures below Performance Materiality (PM) value, the verification stage (vouching), and confirmation. Theoretical contribution: This study expands the literature on premature sign-off behavior by integrating Foucault's perspective on power relations. Practical contribution: In practical term, it provides insights for auditors to maintain integrity and for regulators to strengthen supervision and guidance. Limitations: The limitation of this study lies in the fact that the informants only came from PAFs without involving auditor partners and auditees, so further research is recommended to involve more diverse informants.

Review

This paper offers a timely and insightful examination of premature sign-off in audit procedures, a critical issue for audit quality and integrity. The decision to employ Michel Foucault's theory of power relations as an analytical framework within a critical paradigm is a significant strength, providing a fresh and profound perspective on a well-documented problem. This theoretical grounding elevates the study beyond a mere descriptive account, offering a nuanced understanding of the underlying dynamics that compel auditors to deviate from established procedures. The topic is highly relevant to current discussions on audit effectiveness and auditor independence, making a valuable contribution to the field. Methodologically, the study effectively utilizes Interpretative Phenomenological Analysis (IPA) through semi-structured interviews with experienced auditors. This qualitative approach is well-suited to exploring the complex behavioral nuances and subjective experiences that lead to premature sign-off. The findings compellingly demonstrate how the dominance of power, particularly from partner-level auditors and clients, directly influences and even dictates the omission of crucial audit steps, such as Test of Control and detailed verification procedures. This empirically-grounded observation strongly supports the study's central premise and validates the application of Foucault's power relations, thereby significantly expanding the existing literature on auditor behavior and audit quality. The practical implications of this research are noteworthy, offering valuable insights for individual auditors to reinforce their commitment to integrity and for regulatory bodies to enhance their supervisory and guidance frameworks. While the study makes a substantial contribution, its acknowledged limitation regarding the participant pool—excluding auditor partners and auditees—presents a clear avenue for future research. Expanding the scope of informants to include these crucial stakeholders would undoubtedly provide a more holistic and comprehensive understanding of the power dynamics at play, further enriching the field and offering more robust recommendations for mitigating premature sign-off behavior.

Full Text

Comments

You need to be logged in to post a comment.