Jai | Journal of Accounting and Investment

Audit Quality: Does Time Pressure Influence

Independence and Audit Procedure
Compliance of Auditor?
Firda Ayu Amalia*1, Sutrisno2, Zaki Baridwan2

ABSTRACT: This research was aimed to empirically examine the effect of

independence and audit procedure on audit quality with time budget pressure as
1
Department of Accounting, moderator variable. The population comprised auditors working on Public
Universitas Muhammadiyah Accountant Office (KAP) in East Java, while the samples consisted of 45
Malang, Jl. Raya Tlogomas respondents. This study used a survey technique is by questionnaire as data
No. 246, Malang, collection techniques. The PLS was used for data analysis. The result showed that
East Java, Indonesia. the independence and audit procedure positively affected the audit quality. The
2
Department of Accounting, variable of time budget pressure as moderator was capable to enfeeble the
Universitas Brawijaya, Jalan relation between the independence and audit quality, and also to reinforce the
Veteran, Ketawanggede,
relation between audit procedure and audit quality. The results of this study have
Lowokwaru, Kota Malang, East
Java 65145, Indonesia. provided support for Agency theory. A quality audit can reduce information
*Correspondence: asymmetry so as to minimize moral hazard actions by management.
[email protected]
This article is avalilable in: KEYWORDS: independence; audit procedure; time pressure; audit quality
http://journal.umy.ac.id/index.php/ai
DOI: 10.18196/jai.2001112 © 2019 jai. all rights reserved

Citation:
Amalia, F.A., Sutrisno, and Introduction
Baridwan, Z.I. (2019). Audit
Quality: Does Time Pressure Research on audit quality is motivated by a decline in audit quality. An audit
Influence Independence and Audit is said to be of quality if the opinion issued by the auditor reflects the actual
Procedure Compliance of
Auditor?.Journal of Accounting condition of the company. However, several audit failure cases that have
and Investment, 20(1), 130-144. occurred in several countries, especially in Indonesia reflect audits that
have decreased quality. Every year there is always a freeze on licenses of
Received: several public accountants by the Ministry of Finance because they have
13 August 2018
not carried out audits in accordance with audit standards. This has a
Reviewed: significant influence on opinion reflected in the independent auditor's
30 August 2018 report (pppk-kemenkeu, 2018). For example, Rolls Royce aircraft engine
manufacturers in the UK received a fine of GBP 671 million. This fine is
Revised: related to granting bribes to executives of buyers of Rolls Royce products.
11 October 2018
In the Rolls Royce case, an investigation of KPMG which became the Rolls
Accepted: Royce auditor began. Public questions are how auditors can publish reports
26 December 2018 or opinions, in fact they fail to find something wrong in the body of the
organization being audited (Priantara, 2017).
Copyright: © 2019 Amalia,
Sutrisno & Baridwan. This
is an open access article Consistent with audit failures in the UK, in Indonesia the Marlinna Public
distributed under the Accountant (AP), Merliyana Syamsul, and Public Accountant Office (KAP)
terms of the Creative Satrio Bing, Eny & Rekan (Deloitte Indonesia) were subject to sanctions for
Commons Attribution violations of the audit professional standards, especially audit procedures.
License, which
permits unrestricted use, The results of the examination by the Center for Financial Professional
distribution, and Development (PPPK) concluded that Marlinna and Merliyana Syamsul
reproduction in any Public Accountants had not fully complied with the Audit Standards -
medium, provided the Professional Standards of Public Accountants in the implement-tation of
original author and source
general audits of PT. Sunprima Nusantara Financing (SNP Finance) fiscal
are credited.
year 2012 to 2016. Besides, the quality control system possessed by KAP
Amalia, Sutrisno and Baridwan/ Audit Quality: Does Time Pressure Influence Independence and Audit Procedure…

contains weaknesses because it has not been able to properly prevent the
threat of closeness in the form of a long enough relationship between senior
personnel (audit team manager) in the audit engagement for the same client
for a long period of time. So that it can be concluded that violations
committed related to audit procedures in detecting fraud and auditor
independence (pppk-kemenkeu, 2018).

In addition, there is more news that the Public Company Accounting

Oversight Board (PCAOB) or the Board of Trustees of the United States of
America (US) has sentenced the Public Accounting Firm (KAP) Purwanto,
Suherman and Surja along with Ernst and Young (EY) Indonesia partners for
proved to be instrumental in the failure of PT Indosat Tbk's financial
statement audit in 2011. Provision of Unqualified Opinion (WTP) opinion by
auditors is not supported by sufficient and adequate evidence in the
implementation of audit procedures. It can be said that there is a violation of
audit standards by the auditor. The penalty given by PCAOB was a fine of US
$ 1 million to Ernst and Young Indonesia. Then the fine was also given to
public accountants who were EY Indonesia's partners, namely Roy Iman
Wirahardja for US $ 20,000 plus a ban on practicing for five years (Ashari,
2017).

In Indonesia, in response to the decline in audit quality, the Professional

Accountants Committee recommends setting audit quality indicators to the
Public Accountants Association and the Center for Financial Professional
Development. The purpose of the draft audit quality indicators is to improve
the quality of audit services, increase public trust in the practice of the public
accounting profession, and respond to global developments that demand
audit according to international best practices (IAPI, 2016). The draft
contains audit quality indicators which include auditor competence, ethics
and auditor independence, time usage of key engagement personnel, quality
control systems, quality review results or external and internal party
inspections, range of control arrangements, organization and governance of
KAP, and finally policy recompense.

Audit quality is important because financial reports that are quality and free
from misstatements result from quality audits (Sudarna & Ludigdo, 2014).
The possibility that the auditor will find misstatements does not only depend
on the quality of the auditor's understanding (competence) but also on the
independence of the auditor to report the misstatement (Rahmina & Agoes,
2014). Many previous studies have examined the effect of independence on
audit quality such as Rahmina and Agoes (2014), Septriani (2012) and
Amrulloh and Putra (2014). These studies focused on independence in mind
(independence in mind) and independence in appearance (independence in
appearance). The current research adds independence criteria as the
auditor's partisanship to dare to report findings in the audit process. Or it
can be said that auditors must have independence in expertise.

Independence in the expertise of an auditor can improve audit quality if

supported by audit procedures. The selection of audit procedures was
motivated by the case of SNP Finance in Indonesia and Rolls Royce in the UK,
as mentioned earlier. Actually, the case was caused by no disclosure of fraud
in the audit process. The procedure of the audit carried out cannot reveal
the existence of fraudulent actions, so the researcher refers to the research

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of Sarwoko and Agoes (2014). The reason for referring to the research of is
the audit procedure indicator in the study referring to SAS 99 (Sarwoko &
Agoes, 2014). The indicator used by researchers regarding audit procedures
is whether auditors carry out SAS 99 or not. Standard audit SAS 99 regarding
the consideration of fraud in the financial statements. Auditor is responsible
for planning and carrying out audits to obtain sufficient confidence whether
the financial statements are free from material errors and whether there are
intentional or not errors (AICPA, 2014).

The researcher added the time pressure moderation variable in examining

the relationship of independence and audit procedures to audit quality. The
addition of this moderation variable is because time pressure is one
indicator that affects audit quality (IAPI, 2016). The addition of time pressure
variables as moderating variables was carried out by Halim (2014), Gasperz
(2014) and Pradipta and Budiartha (2016). The results of the three studies
are inconsistent. Time pressure cannot moderate the relationship of profes-
sionalism, auditor experience and audit quality (Pradipta & Budiartha, 2016).
Gasperz (2014) explains that time pressure can moderate the relationship
between accountability, ethical awareness and quality, but pressure cannot
moderate the relationship of independence and audit quality.

The difference in this research with previous research also lies in the basis of
the theory used. The researcher uses the basis of inverse U theory, namely
the theory of work stress as the theoretical basis for the time pressure
moderation variable (Wijono, 2010). In the theory, it is explained that when
a person gets a stimulus that is too low or too high, the performance or
performance produced will be low. However, when a given stimulus reaches
its optimal point, or is called a moderate point, achievement or performance
will reach its maximum point (Broadhurst, 1959). The existence of these
stimuli can respond both positively and negatively. When the stimulus has
an impact on decreasing performance or performance, it can be said that
the stimulus is work stress or stress (Bachroni & Asnawi, 1999).

In this study, the stimulus given is in the form of time pressure in the audit
process. Time pressure has an impact on the work stress perceived by the
auditor. In accordance with the inverse U theory, if the stress level is too
low, the auditor's work effectiveness (reflected in the resulting audit report)
also tends to be low due to the absence of driving forces. At moderate level
stress, the driving factor will be in the optimal level and increase the
auditor's work effectiveness. Furthermore, at a stress level that is too high,
the effectiveness of work is not getting better, but on the contrary, it
decreases because the auditor is afraid and too worried that he cannot meet
the targets that must be achieved. The more stressed the auditor because
the time to complete the audit narrower, the auditor tends to take actions
that can cause audit quality to decline (Andreas, 2016; Zakaria, Yahya &
Salleh, 2013).

Based on the description above, the purpose of this study is to empirically

examine the effect of independence and audit procedures on audit quality,
as well as audit time pressure in moderating the relationship of
independence and audit procedures to audit quality. The difference in this
study lies in the study sample, namely the auditors in East Java. In addition,
the theoretical basis used in the moderating variable is also different

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compared with Halim (2014). This difference in theory is intended to prove

empirically whether audit time pressure strengthens or weakens the
relationship between the independent variable and the dependent variable.

The theoretical contribution of this research is to provide support for the

reverse U work stress theory. Empirical results prove that audit time
pressure weakens the relationship between independence and audit
procedures to detect fraud on audit quality. When auditors experience a
high level of stress due to the limited time of the audit, this will cause
disruption of independence and failure to carry out audit procedures to
detect fraud so that the resulting audit can decline in quality. Furthermore,
practical contributions especially for policy makers. The results of this study
can be a consideration for regulators in the formulation of policies and
regulations relating to audits. Especially in terms of making a special agency
in assessing the independence of auditors. In addition, the regulator can
adopt SAS 99 into SPAP for audit procedures in order to detect fraud in the
financial statements appropriately.

Literature Review and Hypotheses Development

Independence of Audit Quality

The work stress theory described by the inverted U explains that the
pressure felt by someone can have an impact on increasing performance or
vice versa. The work stress theory described by the inverse U explains that
the pressure felt by someone can have an impact on increasing performance
or vice versa. The pressure that is too low or too high will make the
performance decreases (Jum’ati & Wuswa, 2013). One of the pressures
faced by auditors is time pressure. The auditor is required to complete the
work within the time set out in the audit plan. This time pressure is the
cause of work stress. In this regard, the auditor is required to be able to
complete the audit work without being influenced by time constraints and
influence from the management. Thus, auditor is expected to be able to
maintain independence, so that the resulting audit is of high quality. This is
supported by Umar and Anandarajan (2004) which confirms that reduced
audit quality is due to reduced auditor independence. Several previous
studies have discussed the positive relationship of independence to audit
quality (Rahmina & Agoes, 2014; Sarwoko & Agoes, 2014; Tepalagul & Lin,
2015; Garcia-Blandon & Argiles, 2015; Halim, 2014). The higher the
independence of public accountants, the higher the quality audit will be.

Based on these explanation, the researcher argues that when the auditor
chooses to maintain his mental attitude from various things that can
interfere with his independence, the resulting audit reflects the actual
situation, so that the resulting audit can provide sufficient confidence that
financial statements are free from material misstatements. However, if the
opposite, the auditor cannot maintain its independence, it can affect audit
results that are not qualified. Thus, the hypothesis is formulated as follows:

H1: Independence has a positive effect on audit quality.

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Audit Procedure for Detecting Fraud of Audit Quality

The audit procedure emphasized in this study is an audit procedure to

detect fraud in financial statements. SAS 99 contains an expansion of audit
procedures in an effort to detect fraud (Kassem & Higson, 2012; Carpenter,
2007) to improve audit practices (Trongmateerut, 2011). Trongmateerut
(2011) also explained that SAS 99 gives more attention to fraud and the risk
of fraud in the audit process than SAS 82. Previous research (Sarwoko &
Agoes, 2014; Trongmateerut, 2011; Kassem & Higson, 2012; Koroy, 2009;
Sarwoko, 2014) have discussed audit procedures to detect fraud, in relation
to audit quality. The results of all the studies mentioned earlier indicate that
audit procedures have a significant positive relationship to audit quality.

Researchers also have the same understanding as the results of previous

studies. If the auditor can adopt SAS No. 99 in order to carry out audit
procedures to detect fraud in the financial statements, the possibility of
material misstatement in the financial statements is also smaller. The smaller
the possibility of material misstatement, the more audit results can be said
to be of higher quality. Audited financial statements can be used as a tool for
taking decisions by stakeholders. So that it can be said that:

H2: Audit procedures have a positive effect on audit quality.

Audit Time Pressure weakens the relationship between Independence

and Audit Quality

Time pressure is closely related to the work stress theory (Zakaria et al.,
2013; Simanjuntak, 2008). Bachroni and Asnawi (1999) explain that one
source of stress originating from the organization is the task demand. In this
case, the auditor is required to complete the work, namely the audit within a
predetermined period of time. As it is known that in the initial stage of the
audit planning stage, the auditor must determine how long it will take to
complete the audit. It can be said that the auditor must complete the audit
work within a predetermined period of time.

The tightness of time occurs when a set of targets seems difficult to achieve
due to limited time. Auditors see time as a performance indicator, so that it
increases stress for auditors (Zakaria et al., 2013). Most auditors experience
stress at a high level and result in dysfunctional behavior. Dysfunctional
behavior causes low quality audits. Coram, Ng and Woodliff (2004) explain
that there is a high audit time pressure, causing the auditor to receive audit
evidence that is doubtful and ignores risks. This kind of thing causes the
detection of material misstatement contained in the financial statements.
DeAngelo (1981) states that the possibility of auditors not reporting any
material misstatement depends on auditor independence. So, it can be said
that if the audit time pressure causes the auditor to not be able to report
misstatements, then the tight time of the audit causes the auditor unable to
maintain its independence. This of course will cause a decrease in audit
quality. Based on this explanation, it can be formulated:

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H3: Audit time pressures weaken the relationship between independence

and audit quality.

Audit Time Pressure weakens the relationship between Audit

Procedures and Audit Quality

Otley and Pierce (1996) explain that auditor is faced with increasing
competition, resulting in a cost quality dilemma. Auditors must be able to
reduce the time of work so that the costs incurred can be minimized, so that
they can compete in determining the audit fee. In order to set the time for
work, the auditor makes the audit time so that the audit can be completed
within a period of time that is not detrimental in terms of cost. But if at that
time, the auditor cannot complete his work, then the dysfunctional behavior
is that all audit procedures are not carried out (premature audit sign off).

Soobaroyen and Chengabroyan (2006) state that auditor faces a dilemma,

namely the pressure to reduce costs by completing a limited time audit, but
on the other hand the auditor must maintain a professional standard by not
taking actions that can reduce audit quality. Audit time pressure causes the
auditor to perform audit procedures imperfectly (premature audit sig off).
Shapeero, Chye Koh and Killough (2003) asserted that premature audit sign
off directly causes the quality of audit produced to decrease and this action
is contrary to professional standards. Based on this explanation, it can be
formulated:

H4: Audit time pressure weakens the relationship between audit

procedures and audit quality.

Based on hyphoteses developed, the research model was formulated as

shown in Figure 1.

Indepen-
dence
H3 H1

Time Audit
pressure Quality

H4
H2
Audit
Procedure

Figure 1. Research Model

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Research Method

The population in this study were auditors who worked at the Public
Accounting Firm (KAP) in East Java. The reason for choosing auditors in East
Java is based on the official website www.iapi.or.id, the second largest
number of KAP in Indonesia after Jakarta is East Java, so researchers assume
that the second highest number of auditors after Jakarta is East Java. The
sampling technique was done by nonprobability, namely convenience
sampling. The reason for using convenience sampling technique is conside-
ration of convenience because respondents, namely auditors, are people
who have a relatively high level of activity.

This research uses survey techniques as a data collection technique. The

distribution of questionnaires for KAP in the areas of Surabfaya, Sidoarjo,
and Pasuruan was sent via mail, and came to the KAP in Malang. The total
questionnaire distributed as a whole was 72 questionnaires but which
returned and could be processed as many as 45 questionnaires. So that the
total sample in this study was 45.

The construct in this study consists of independence, audit procedures, audit

time pressure, and audit quality. Audit time pressure is a moderating
variable in this research. The construct or also called latent variable is
variable that can not be measured directly (Jogiyanto & Abdillah, 2009). All
contracts in this study were measured using a five-point Likert scale starting
from strongly disagree to strongly agree. The use of a five-point Likert scale
is based on consideration of the auditor's busy life. It is expected that with
the use of five points, the questionnaire looks simpler so the auditor is
willing to fill out the questionnaire.

Independence is a relationship between auditors and clients that is neutral,

and cannot be influenced by anything except evidence found and collected
in accordance with professional rules and principles (Rahmina & Agoes,
2014). This study uses the Antle (1984) research indicator adapted by
Rahmina and Agoes (2014), and combines indicators of independence from
Halim (2014) which is adopted from Beattie, Brandt and Fearnley (1999). The
reason for combining indicators is to better describe the latent variables of
independence more fully.

Audit procedures are procedures used to detect fraud risks in financial

statements so that high quality audits can be produced (Sarwoko & Agoes,
2014). The indicators and items used in this study were taken from the
research of Sarwoko and Agoes (2014). Audit quality is a market assessment
that is associated with opportunities given to the auditor to find violations in
the client's accounting system and report such violations (DeAngelo, 1981).
The indicators used in this study are indicators used by Sarwoko and Agoes
(2014). Audit time pressure is a situation where the auditor is required to
complete the audit on time with the time that has been prepared and is very
strict with the aim of audit time efficiency (Otley & Pierce, 1996). The
indicators used in this study are indicators used by Otley and Pierce (1996)
and Halim (2014).

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This study uses Structural Equation Model-Partial Least Square (SEM-PLS) in

analyzing data and testing hypotheses. The main reason the researchers
used SEM-PLS as an analytical tool because SEM was able to analyze
variables that could not be measured directly or had to use indicators or
questionnaire questions (Sholihin & Ratmono, 2013). Data analysis in this
study consisted of descriptive statistics, data quality tests which included
outer and inner models, and hypothesis testing.

Result and Discussion

Response rate

This study uses a sample of auditors working in KAP in East Java.

Questionnaires that returned and could be processed were 45 (62%) with
details in Table 1. Not all returned questionnaires can be processed. This is
because respondents are less serious in filling out the questionnaire. The
inconsistency in the answers to the two negative statements with positive
statements is evidence of respondents' seriousness. Questionnaires that
cannot be processed are also caused by items that are not filled.

Test Results of the Measurement Model (Outter Model) Construct Validity

Test Results

The construct validity test consists of convergent validity test and

discriminant validity test. Table 2 presents the results of the convergent
validity test and discriminant validity. Based on table 2 it can be concluded
that all indicators have met the construct validity requirements.
Furthermore, the highest loading value collects at each specified construct.
This shows that these indicators have met the discriminant validity
requirements. Based on Table 2, all instruments are reliable. This is indicated
by the cronbach's alpha value greater than 0.6 and the composite reliability
greater than 0.7.

Discussion

Table 3 shows hypotheses testing result summary. Empirical evidence shows

that audit quality is influenced by independence. This empirical evidence is
in line with research conducted by Rahmina and Agoes (2014), Tepalagul and
Lin (2015), Sarwoko and Agoes (2014), and Sudarna and Ludigdo (2014).
Research on independence and audit quality was also carried out by
Tepalagul and Lin (2015). Broadly speaking, four things are grouped that can
threaten the independence of auditors, namely important clients, non-audit
services, tenure audits, and clients affiliated with KAP. The results of the

Table 1 Questionnaire Return Rate

Information Total Percentage (%)
Distributed Questionnaire 72 100
Questionnaire that doesn't return 24 34
Return Questionnaire 48 66
Questionnaire that cannot be processed 3 4
Questionable questionnaire 45 62

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research by Tepalagul and Lin (2015) explain the findings related to

incentives, perceptions, and behavior of auditors and clients. Any threats to
independence will affect the quality of the resulting audit and financial
statements. Auditor independence is important because independence
influences audit quality. If the auditor does not pay attention to
independence, there will be a tendency not to report irregularities in the
financial statements, which can damage audit quality.

In line with the above research, Sarwoko and Agoes (2014) used fifty Public
Accounting Firms registered in the Indonesian capital market as a
population. However, respondents in this study were only audit partners.
The measurement of the independence variable in the study is based on
mental attitude, and is divided into three stages: first the planning stage, the
second implementation stage, and the three audit reporting stages. The
results of the study explain that the effect of independence on audit quality
is positive. This shows that the higher the independence of the auditor, the
higher the quality audit produced.

The research of Sudarna and Ludigdo (2014) also prove that independence
has a positive effect on audit quality. However, this research was conducted
in the public sector. The population used was all the teams that formed to
carry out the 2010 LKPD examination of 497 audit teams at six BPK RI
representative offices in Jakarta, Serang, Bandung, Yogyakarta, Semarang,
and Surabaya. Independence in the study was measured using the length of
the relationship with the auditee, the provision of non-audit services,
pressure from the auditee, and review of fellow auditors.

Several studies, both conducted on auditors working at the Public

Accountant Office and BPK RI, proved that the higher the auditor's
independence, the higher the quality of the audit produced. Current
research shows the same results as previous studies. This proves that
auditor independence has a positive effect on audit quality. Furthermore,
empirical evidence shows that audit procedures have a positive effect on
audit quality. This result is consistent with the research conducted by
Sarwoko (2014) and Sarwoko and Agoes (2014). Sarwoko (2014) and
Sarwoko and Agoes (2014) provide empirical evidence that audit procedures
have a positive effect on audit quality. The audit procedures in both studies
were measured using three indicators, ie first not implementing minimum
procedures contained in SA Section 316 SPAP, both implementing minimum
SPAP procedures, and third implementing minimum SPAP procedures plus
audit procedures contained in SAS 99 AICPA. The three indicators focus on
audit procedures that are used to detect misstatements caused by error and
fraud. The three indicators focus on audit procedures that are used to detect
misstatements caused by fraud and fraud. The implementation of audit
procedures that are focused on detecting misstatements because the
auditor has not fully complied with audit standards, especially audit
procedures, resulting in audit failure cases.

The audit procedure used in the present research is also an audit procedure
to detect the occurrence of misstatements due to errors and fraud.
Empirical evidence shows the same results, namely audit procedures have a
positive effect on audit quality. This shows that the more detailed audit
procedures used by auditors in detecting fraud, the higher the audit

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Table 2 Test Result of Construct Validity and Reliability

Construct Indicator AVE Loading Value Cross Loading Significance Conclusion
Independence AI1 0.564 0.689 <0.689 <0.001 Valid
AI2 0.820 <0.820 <0.001 Valid
AI3 0.829 <0.829 <0.001 Valid
AI4 0.779 <0.779 <0.001 Valid
AI5 0.766 <0.766 <0.001 Valid
AI6 0.740 <0.740 <0.001 Valid
AI7 0.718 <0.718 <0.001 Valid
AI8 0.755 <0.755 <0.001 Valid
AI9 0.685 <0.685 <0.001 Valid
AI10 0.713 <0.713 <0.001 Valid
Audit AP1 0.727 0.854 <0.854 <0.001 Valid
Procedure AP2 0.910 <0.910 <0.001 Valid
AP3 0.789 <0.789 <0.001 Valid
Audit Quality AQ1 0.812 <0.812 <0.001 Valid
AQ2 0.887 <0.887 <0.001 Valid
AQ3 0.717 0.780 <0.780 <0.001 Valid
AQ4 0.795 <0.795 <0.001 Valid
AQ5 0.868 <0.868 <0.001 Valid
AQ6 0.835 <0.835 <0.001 Valid
AQ7 0.857 <0.857 <0.001 Valid
AQ8 0.857 <0.857 <0.001 Valid
AQ9 0.867 <0.867 <0.001 Valid
AQ10 0.795 <0.795 <0.001 Valid
AQ11 0.950 <0.950 <0.001 Valid
AQ12 0.909 <0.909 <0.001 Valid
AQ13 0.862 <0.862 <0.001 Valid
AQ14 0.792 <0.792 <0.001 Valid
AQ15 0.842 <0.842 <0.001 Valid
AQ16 0.870 <0.870 <0.001 Valid
AQ17 0.887 <0.887 <0.001 Valid
AQ18 0.859 <0.859 <0.001 Valid
AQ19 0.841 <0.841 <0.001 Valid
AQ20 0.749 <0.749 <0.001 Valid
Time Pressure TP1 0.610 0.745 <0.745 <0.001 Valid
TP2 0.823 <0.823 <0.001 Valid
TP3 0.781 <0.781 <0.001 Valid
TP4 0.774 <0.774 <0.001 Valid
Variable Cronbachs Alpha Composite Reliability Conclusion
Auditor Independence 0.913 0.928 Reliable
Audit Procedure 0.810 0.888 Reliable
Audit Quality 0.979 0.981 Reliable
Time Pressure 0.786 0.862 Reliable
Information: AI: Auditor Independence, AP: Audit Procedure, AQ: Audit Quality, TP: Time Pressure

produced. The audit procedure found in SAS 82 AICPA adopted into SA

Section 316 SPAP, is less effective in detecting fraud in financial statements.
In response, in 2002 AICPA published SAS 99 which contains rules regarding
audit procedures that are more detailed to detect fraud, such as brain
storming and red flag procedures. Audit procedures for detecting fraud
found in SAS 99 is an improvement in audit procedures found in SAS 82
AICPA.

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Table 3 Result of Hypothesis Test

Value of Significance Value
Positive/Negative
Hypothesis Explanation Yes/No
Coefficient Path (one-tailed) Significance
Positive,
H1 AI  AQ 0.627 <0.0005 Yes
significance
Positive,
H2 AP  AQ 0.372 0.0050 Yes
significance
Negative,
H3 AI*TPAQ -0.261 0.0200 Yes
significance
Positive,
H4 AP*TPAQ 0.133 0.0500 Yes
significance
Information: AI: Auditor Independence, AP: Audit Procedure, AQ: Audit Quality, TP: Time Pressure

Based on the results of testing, time pressure weakens the relationship

between independence and audit quality. This shows that the greater the
time pressure experienced by the auditor, the auditor's independence
becomes disrupted and results in a decrease in the quality of the audit
produced. The results showed that the smaller the time pressure
experienced by the auditor, the greater the effect on the ability of the
auditor to report the findings of violations in the client's accounting system,
so that the resulting audit more qualified. This is because independence is
the auditor's ability to report findings of violations (DeAngelo, 1981). There
are theoretical differences that underlie the pressure of the current research
audit compared with Halim (2014). Current research uses the theory of
reverse U work stress, while Halim's uses the theory of affective events.

Job stress theory explains that when the target time gets tighter,
performance will increase until time becomes tight and starts to indicate an
inability to achieve. After this point, the goal will decrease, so that the
presence of an inverse U curve will connect between the tightness of time
and a decrease in performance. Current research has obtained empirical
evidence that shows that the greater time pressure faced by auditors, the
smaller the auditor's ability to report findings of violations and result in
lower audit quality produced.

Based on the theory of inverted U work stress, in this study indicate that
time pressure makes the auditor unable to achieve quality audit results due
to disruption of auditor independence. Many things make auditor
independence impaired, such as audit environmental factors, namely the
presence of time pressure. In other words, time pressure weakens the
relationship of independence and audit quality. This empirical evidence is
supported by research conducted by Otley and Pierce (1996), Pierce and
Sweeney (2004) and McNamara and Liyanarachchi (2008).

Finally, the results of the study prove that time pressure weakens the
relationship between audit procedures and audit quality. The current
research provides empirical evidence such as Isrowiyah (2011). The study
states that the greater time pressure faced by auditors in carrying out audit
procedures, the greater dysfunctional audit actions that lead to decreased
audit quality. The empirical evidence explains that time pressure weakens
the relationship between audit procedures and audit quality.

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The cause of time pressure reinforcing the relationship between audit

procedures and audit quality is experiencing stress caused by the time
pressure. The auditor is required to be able to complete his work with a
predetermined time. Some studies provide empirical evidence that shows
when auditors experience time pressure problems, this will lead to behavior
violations (Margheim, Kelley & Pattison, 2005; Otley & Pierce, 1996;
McNamara & Liyanarachchi, 2008; Zakaria et al., 2013). The behavioral
violations carried out related to the time pressure is that some audit
procedures should not be carried out. This causes a material misstatement
that cannot be detected so that it can lead to a decrease in audit quality.

Conclusion
This study aims to provide empirical evidence of the effect of independence
and audit procedures on audit quality with audit time pressure as a
moderating variable. Respondents who were sampled in this study were as
many as 45 auditors who worked for KAP in East Java. PLS SEM is used as a
data processor using the Warp PLS 3.0 application. The more independent
and applying all audit procedures to detect misstatements, the better the
resulting audit. Quality audits can provide actual information, so that it can
be used as a decision-making tool for users of financial statements.
Furthermore, empirical evidence shows that time pressure weakens the
independence relationship, audit procedures to detect fraud and audit
quality.

The implication of this research is that it can be a consideration for the

auditor when deciding to accept an audit job. This is because in completing
the audit, the auditor is limited by time as determined in the planning stage
of the audit. The results of the study prove that when auditors face the
problem of time pressure, this problem tends to weaken the relationship of
independence and audit procedures to audit quality. Time pressure is one of
the things that causes work stress for auditors.

The limitation of the study is that it does not distinguish the auditor's stress
level at the junior auditor level to the partner. The suggestion for the next
research is to divide the auditor level to find out the stress level, so that the
auditor can know at what level the highest level of stress when faced with
the pressure of the audit time. In addition, subsequent research can use
experimental studies to examine factors that influence audit quality. Further
researchers can also associate time pressure variables perceived by auditors
with deviant actions or dysfunctional behavior.

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