Title: An analysis of the effect of time budget pressure

towards the quality of audited financial statements.

• Problem: Dysfunctional behaviours resulting

from time budget pressures on quality of audit
engagements.
 Introduction

• Audit firms mostly face challenges of having many clients that have same fiscal year which is
known as a busy period and this brings about Time Budget Pressure. This pressure leads to low
employee morale and Dysfunctional behaviour by auditor. The factors have a negative effect on
Audit Quality because there would be misrepresentation of audit evidence by auditors.
• According to David T Otley and Bernard J Pierce the dysfunctional behaviour by auditors is likely
the results of the pressure from the time budget. Loren Margheim, Tim Kelly, Daine Pattison in
Journal of applied business Research (JABR) 21(1),(2005) scrutinized the impact of time budget
pressure and time deadline pressure on auditors and perceptions of stress, key organizational
behaviour measures and cognitive problems. The results prosed that the increase of both time
budget pressure and time deadline pressure will lead to stress on both senior and junior auditors.
Lee (2012) also stated time pressure can result in low motivation on employees.
Further supporting was Svanberg and Ohman (2013) stating that competitive
principles in firms have been proposed to be associated with reduction audit
quality in relation to time budget pressures.

However Wijaya and Yulyona said that time budget has no effect on quality
of audit. Brobery ct al (2016) suggested that audit quality is affected by
many factors such as position gender and experience of auditors.
Christensen ct al (2015) also suggested that there is finding that
characteristics of auditors is an essential determinate of audit quality.
 Aim

• The aim of the study is to help future auditor to find you balance between
Time Budget Pressure and the quality of his audit work. This important
because quality in audited financial statement gives reasonable assurance
that financial statement are free from material misstatement and are fairly
presented.
Background of study
 Research questions
• What causes the Time Budget Pressure?
• How is the dysfunctional behaviour affecting the audit profession to audit
client?
• What are suggested solutions for Time Budget Pressure?
• What is the best practise on Time Budget pressure to achieve audit
quality?
 Research objective
• Identify the causes of Time Budget Pressure
• Determine how dysfunctional behaviour affects the audit profession and
audit clients
• Ascertain the suggested solutions for Time Budget Pressure
• Establish the best practises on Time Budget Pressure to achieve audit
quality.
 CHALLENGES FACED IN THE
RESEARCH
• Confidentiality of Information : It is Company policy for most Audit firms
to restrict the transfer of information outside the boarders of the company.
This challenge was countered by the use of the Internet.
• Time Constraint : There was limited time available for collection of data
for this research.
 CONTRIBUTION
• This study may be of assistance to the future researchers that want an in-depth
knowledge on the best way to analyse the effects of Time Budget Pressure on
Audit Quality and might help to provide measures that may be adopted to
counter problems of Time Pressure Budgets so that its effect on audit quality is
reduced.
• In addition, it may be of assistance to the Audit Firms in assessing Time Budget
Pressure and dysfunctional behaviours and a source of recommendations for
adoption to mitigate dysfunctional behaviour and reduce time budget pressure
to ana acceptable level.
 RESEARCH METHODOLOGY
• For this research, we used the qualitative method. Qualitative research design is a
structured inquiry that explain the phenomena through collecting data that can be
analysed numerically to create new knowledge as well as support or refute alternative
knowledge claims. Qualitative research design is an approach where there is
subjective assessment of attitudes, opinions and behaviour without using
mathematical procedures when interpreting the phenomena. In addition, there is
mixed design which combines characteristics of both the qualitative and quantitative
research, for this study we are going to use the qualitative research method because
that it offers, as stated by Chog (2017) that qualitative research method gives room to
inquire further by probing more comprehensive and open ended questions.
It also enables the understanding of values, beliefs and assumptions of the
target population and what drives it.
With quantitative research, the research should strive to be as specific as
possible , selecting a small sample , which ultimately leads to less accurate
results as compared to that of qualitative research. The research philosophy
justify choice of this method is the interpretivism. Interpretivists reject the
notation of single, objective truth. It instead emphasizes the importance of
multiple perspectives and subjective interpretations.
 Population, sampling and data
instruments
• The target population for this research in Ernst and Young Zimbabwe
Bulawayo office audit staff. The research is mostly targeting audit seniors
and juniors as they are major victims of time budget pressure and they
resort to DB as they do most of the ground work . However managers are
also part of the target population as they will also review the work and
notice some DB which they may choose to ignore or report. The is going
to use sampling design method.