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The unstopped streams of corporate failures raise serious concerns for a wide range of corporate stakeholders.Researchers identified several kinds of dysfunctional behaviors that include but are not limited to premature signoff, altering the audit process, giving superficial review of audit documents, gathering insufficient audit evidence, improper reporting, relying overly on client's work, and underreporting of audit time.This auditors' poor workmanship in the audit profession is termed as dysfunctional audit behavior.
The unstopped streams of corporate failures raise serious concerns for a wide range of corporate stakeholders. Numerous factors cause the fiascoes of these gigantic corporations. External auditor’s failure to find and report financial nonconformance’s in their audit report is one of the most crucial factors for instigating these corporate debacles. Though, numerous accounting and auditing regulatory bodies – SEC, PCAOB, IAASB, and IAS – formulate, update, and implement periodic regulations to sustain public confidence in financial reporting, however, external auditors’ poor workmanship suppresses the due influence of these regulations. This auditors’ poor workmanship in the audit profession is termed as dysfunctional audit behavior. Researchers identified several kinds of dysfunctional behaviors that include but are not limited to premature signoff, altering the audit process, giving superficial review of audit documents, gathering insufficient audit evidence, improper reporting, relying overly on client’s work, and underreporting of audit time.
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