Psychological contract, auditor deviations and audit quality

Abstract

This article is designed to explore the theme: “Psychological Contract, Auditor Deviation, and Audit Quality Which is reviewed from the point of view of non-public accountants. This theme was lifted from the results of research conducted at a company in Surabaya, East Java, Indonesia. Moreover, this study aims to examine the relationship between psychological contracts, Dysfunctional Auditor Behavior, and Audit Quality. This research was taken place at the Non-Big category of Public Accounting Firms or not affiliated with the Big Public Accounting Firms located in Surabaya, East Java, Indonesia. The subjects of this study were supervisory level auditors with the assumption that they had understood and experienced in implementing audit procedures and how they understood the work environment, work relations, and leadership. Researchers use psychological contract variables as independent variables, the variable Audit Quality as the dependent variable, and the Dysfunctional Auditor Behavior variable as the mediating variable. Statistical testing using simple regression to prove the three hypotheses proposed by researchers. The results shows that the psychological contract has a negative effect on dysfunctional auditor behavior and it also can negatively effect on the audit quality. In contrast, the Psychological Contract can positively influence on the audit quality.