A Model For Understanding Dysfunctional Behavior: An Explanatory Framework Incorporating Individual Factors

Abstract

Dysfunctional behaviour and staff turnover are associated with decreased audit quality (Public Oversight Board, 2000). Dysfunctional audit behaviour such as premature sign-off, gathering of insufficient evidence, accepting of weak client explanation, altering or replacing the audit procedures, and under-reporting of time have negative effects specifically on the auditing profession and the development of human capital as a whole. In this study, the organisational behaviour comprises of individual factors and industrial psychology literatures provide the basis for the developing and testing an individual factors’ model over dysfunctional audit behaviour. Using a path analysis for direct and indirect effects, survey results from the registered Audit Managers generally support the explanatory model. Overall, results indicate that auditors who are more accepting dysfunctional behaviour tend to possess an external locus of control and exhibit higher turnover intentions. These results suggest that individual factors play a role in identifying those who are more accepting dysfunctional behaviour. The results can be useful in the operational and management control mechanism of human and social developments relating to dysfunctional behaviour issues.