AUDITOR’S STRESS AFFECTING AUDIT QUALITY: AN INVESTIGATION IN VIETNAMESE AUDITING FIRMS

Abstract

The purpose of this study is to investigate factors that influence auditor stress and the impact of auditor stress on reduced quality reducing behaviour job performance. We surveyed 906 auditors who are working in auditing firms in Vietnam. The research design relies on exploratory factor analysis and regression analysis to ensure the reliability and validity of the results. The findings show that auditor stress is positively related to professional pressure (e.g., workload and time pressure) and leadership style but is negatively related to role ambiguity and conflict. However, we do not find evidence that type-A behaviour is related to auditor stress. Next, we find that auditor stress is related to reduced audit-quality behaviour.

The research is beneficial for practitioners, especially directors of auditing firms. Understanding auditor stress and its impacts on reduced quality reducing behaviourreduced quality reducing behaviourjob performance can help auditing firms establish a working environment and policies to support auditors. This is the first to document evidence for auditor stress and its impacts on reduced quality reducing behaviour in the Vietnamese market.

This study addresses the critical need for understanding auditor stress and its impacts on audit quality in Vietnam, a rapidly developing market where auditing practices face unique pressures and challenges. Our empirical results reveal that auditor stress significantly influences behaviors relating to reduced audit quality (REAQ) (β = 0.373, p < 0.01), underscoring the importance of managing auditor stress effectively to maintain audit quality standards.