Factors Affecting Tax Auditors’ Professional Audit Proficiency
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Published:
Jul 20, 2018
Keywords:
professional audit proficiency tax auditor, tax audit
Main Article Content
Abstract
The purpose of this research is to analyze the effects of audit survival commitment, audit experience diversity, continuous audit improvement, technological development growth, and stakeholder pressure intensity on each dimension of professional audit proficiency of the tax auditor in Thailand. The data used in this study, has been collected directly from questionnaire surveys from 296 tax auditors. This research uses descriptive statistic which is a percentage, as well as using inferential statistics in which multiple regression analysis is used to test the hypotheses. The results had revealed that both audit survival commitment and audit experience diversity have positive influences on all components of professional audit proficiency. Besides, stakeholder pressure intensity has a significant, positive influence on audit learning capability, audit method integration, audit skepticism orientation, and audit ethics focus. Moreover, technology development growth has a significant, positive influence on audit technology implementation and audit ethics focus.
Article Details
How to Cite
Promtong, N., Phornlaphatrachakorn, K., & Raksong, S. (2018). Factors Affecting Tax Auditors’ Professional Audit Proficiency. WMS Journal of Management, 7(Special), 99–110. Retrieved from https://so06.tci-thaijo.org/index.php/wms/article/view/135787
Section
Research Articles-Academic Articles
References
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Akenbor C.O. & Onuoha T.E. (2013). Ethical concept and professional judgment in corporate financial reporting-empirical evidence from Nigeria. The Business and Management Review, 4(2), 78-90.
Al-khaddash, H., Nawas, R. A., & Ramadan, A. (2013). Factors affecting the quality of auditing : The case of Jordanian commercial banks. International Journal of Business and Social Science, 4(11), 206–222.
American Institute of Certified Public Accountants. (2012). AU-C Section 240: Consideration of Fraud in a Financial Statement Audit. New York: n.p.
Armstrong, J. S., & Overton, T. S. (1977). Estimating non-response bias in mailsurveys. Journal of Marketing Research, 14(3), 396-402.
Badara, S. M., & Saidin, Z. S. (2013). Antecedents of internal audit effectiveness: A moderating effect of effective audit committee at local government level in Nigeria. International Journal of Finance and Accounting, 2(2). 82-88.
Bahador, K. M. K., & Haider, A. (2013). Information technology competencies for accounting practitioners: A TOPC framework. 24th Australasian Conference on Information Systems. 4-6 Dec 2013, Melbourne.
Bedard, J., Graham, L., & C. Jackson. (2005). Information systems risk and audit planning. International Journal of Auditing, 9, 147.
Calota, G. & Vinatoru, S. S. (2015). Techniques and procedures to obtain audit evidence assets. Internal Auditing & Risk Management, 1(1), 13–23.
Carpenter, T., Durtschi, C., & Gaynor, L. M. (2002). The role of experience in professional skepticism, knowledge acquisition, and fraud detection. American Accounting Association Mid-Year Auditing Meeting, 1-28.
Drogalas, G., Ioannis, S., Dimitra, K., & Ioannis, D. (2015). Tax audit effectiveness in Greek firms: Tax auditors’ perceptions. Journal of Accounting, and Taxation, 7(7), 123-130.
Ernst and Young. (2015). The future of assurance: How technology is transforming the audit. Retrieved March, 20, 2017. From https://www.ey.com/uk/en/services/assurance/ey-the-future-of-assurance-viewpoint-series
Furiady, O. & Kurnia, R. (2015). The effect of work experiences, competency, motivation, accountability, and objectivity towards audit quality. Procedia-Social and Behavioral Sciences, 211, 328-335.
González-Benito, J. & González-Benito, Ó. (2010). A study of determinant factors of stakeholder environmental pressure perceived by industrial companies. Business Strategy and the Environment, 19(3), 164–181.
Hair, J. F., Black, W.C., Babin, B., J. & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective. New Jersey: Pearson Prentice Hall.
Hatfield C., R., Jackson, B., S., & Vandervelde, D., S. (2011). The effects of prior auditor involvement and client pressure on proposed audit adjustment. Behavioral Research in Accounting, 23(2), 117-130.
Hurtt, R. K. (2010). Development of a scale to measure professional skepticism. Auditing, 29(1), 149–171.
International Accountants Education Standards Board. (2008). International Education Standards (IES8): Competence Requirements for Audit Professionals. New York, NY. 1-14.
Institute of Internal Auditors. ( 2016). International Standards for the Professional Practice of Internal Auditing. Altamonte Springs.
Isa, K. & Pope, J. (2011). Corporate tax audits : Evidence from Malaysia. Global Review of Accounting and Finance, 2(1), 42–56.
Kaspina, S. (2015). Continuing professional development of accounting and auditing: Russian experience and challenges. Procedia-Social and Behavioral Sciences, 191, 550 – 553.
Khampichit, U. & Ussahawanitchakit, P.(2011). Audit ethical al orientation of CPAs in Thailand: An empirical investigation of the antecedents and consequences. Journal of International Management Studies, 11(2), unpaged.
Knapp, A. C. & Knapp, C. M. (2001). The effects of experience and explicit fraud risk assessment in detecting fraud with analytical procedures. Accounting, Organizations and Society, 26, 25-37.
Laohamethanee, W., Ussahawanitchakit, P. & Boonlua, S. (2013). Internal audit skepticism and firm value of Thai-listed firms: An empirical investigation of its antecedents and consequences. Review of Business Research, 13(3), 123.
Lee, C. S., Su, M. J., Tsai, B. S., Lu, L.T., & Dong, W. (2016). A comprehensive survey of government auditors’ self-efficacy and professional development for improving audit quality. Springerplus, 5, 1-25.
Likert, R. (1932). A Technique for the measurement of attitudes. New York:Archives of Psychology.
Lysaght, M. R. & Altschuld, W.J. (2000). Beyond initial certification: the assessment and maintenance of competency in professions. Evaluation and Program Planning, 23, 95-104.
Maria, E. & Ariyani, Y. (2014). E-commerce impact: The impact of e-audit implementation on the auditor's performance. Indian Journal of Commerce and Management Studies, 5(3), 1–8.
Mela, F. N., Zarefar, A., & Andreas. (2016). The relationship of professional commitment of auditing student and anticipatory socialization toward whistleblowing intention. Procedia-Social and behavioral Sciences, 219, 507-512.
Moorthy, K., Mohamed, Z. S., Gopalan, M., & Dan, H. L. (2011). The impact of information technology on internal auditing. African Journal of Business Management, 5(9), 3523-3539.
Musig, P. & Ussahawanitchakit, P. (2011). Dynamic audit competency and the antecedents and consequences: evidence from tax auditors in Thailand. International Journal of Business Research, 11(3), 47.
Nelson, M. W. (2009). A Model and literature review of professional skepticism in auditing. Auditing: A Journal of Practice & Theory, 28(2), 1-34.
Nunnally, J.C. & Bernstein, I. H. (1994). Psychometric Theory. New York: McGraw- Hill.
Ortegren, M., Downen, T., & Kim, S. (2016). Linking skepticism judgment with skeptical action: Consideration of potentially influential client and professional factors. Retrieved February, 12, 2017. From https://ssrn.com/abstract=2727864
Paino, H., Thani, A., & Si, Z. I. S. (2012). Organizational and professional commitment on dysfunctional audit behaviour. African Journal of Business management, 6(4), 1434-1440.
Perez-Batres, L. A., Jonathan P. D., Van V. M. & Michael J. P. (2012). Stakeholder pressures as determinants of CSR strategic choice: Why do firms choose symbolic versus substantive self-regulatory codes of conduct?. Journal of Business Ethics, 110, 157-172.
Pflugrath, G., Marinov-Bennie, N., & Chen, L. (2007). The impact of code of ethics and experience on auditor judgments. Managerial Auditing Journal, 22(6), 566-589.
Revenue Department. (2017). 12-hour Training of Tax Auditors. Retrieved May, 1, 2017. From https://www.rd.go.th/publish/23514.0.html.
Samuel, H. N. & Afiah, N. N. (2013). The impact of objectivity, proficiency and due professional care of auditors to quality of performance audit results : Survey on audit teams of Jakarta Provincial Inspectorate. Proceedings of 8th Asian Business Research Conference, 1 - 2 April 2013, Bangkok, Thailand.
Sarwoko, I. & Agoes, S. (2014). An empirical analysis of auditor’s industry specialization, auditor’s independence and audit procedures on audit quality: Evidence from Indonesia. Procedia-Social and Behavioral Sciences. 164, 271-281.
Schultz, J. J., Bierstaker, L. J., & O'Donnell, E. (2010). Integrating business risk into auditor judgment about the risk of material misstatement: The influence of a strategic systems audit approach. Accounting, Organizations and Society, 35(2), 238-251.
Syamsuddin, Sudarma, M. I., Habbe, H. A., & Mediaty. (2014). The influences of ethics, independence, and competence on the quality of an audit through the influence of professional skepticism in Bpk of South Sulawesi, Central Sulawesi and West Sulawesi. Journal of Research in Business and Management, 2(7), 8-14.
Taddei, S. A. & Siddiqui, J. (2016). Regulation and the promotion of audit ethics: Analysis of the content of the EU’s policy. Journal of Business Ethics, 139, 183-195.
Tudor, G. C., Gheorghe, M., Oancea, M., & Sova, R. (2013). An analysis framework for defining the required IT&C competencies for the accounting profession. Accounting and Management Information Systems, 12(4), 671-696.
Ussahawanitchakit, P. (2012). Audit independence of tax auditors in Thailand: roles of ethical orientation, professional responsibility, stakeholder pressure, and audit experience. Journal of Academy of Business and Economics, 12(1).
Wang, X., Wang, Y., Yu, L., Zhao, Y., & Zhang, Z. (2015). Engaging audit partner experience and audit quality. China Journal of Accounting Studies, 3(3), 230-253.
Wong, P.S.P. & Cheung, S.O. (2008). An analysis of relationship between learning behavior and performance improvement of contracting organizations. International Journal of Project Management, 26(2), 112-123.
Zarefar, A., Andreas, & Zarefar A. (2016). The influence of ethics, experience and competency toward the quality of auditing with professional auditor skepticism as a moderating variable. Procedia-Social and Behavioral Sciences, 219, 828-832.
Adeyemi, S. B. & Fagbemi, O. T. (2011). The perception of ethics in auditing profession. Journal of Accounting and Taxation, 5(November), 146–157.
Akenbor C.O. & Onuoha T.E. (2013). Ethical concept and professional judgment in corporate financial reporting-empirical evidence from Nigeria. The Business and Management Review, 4(2), 78-90.
Al-khaddash, H., Nawas, R. A., & Ramadan, A. (2013). Factors affecting the quality of auditing : The case of Jordanian commercial banks. International Journal of Business and Social Science, 4(11), 206–222.
American Institute of Certified Public Accountants. (2012). AU-C Section 240: Consideration of Fraud in a Financial Statement Audit. New York: n.p.
Armstrong, J. S., & Overton, T. S. (1977). Estimating non-response bias in mailsurveys. Journal of Marketing Research, 14(3), 396-402.
Badara, S. M., & Saidin, Z. S. (2013). Antecedents of internal audit effectiveness: A moderating effect of effective audit committee at local government level in Nigeria. International Journal of Finance and Accounting, 2(2). 82-88.
Bahador, K. M. K., & Haider, A. (2013). Information technology competencies for accounting practitioners: A TOPC framework. 24th Australasian Conference on Information Systems. 4-6 Dec 2013, Melbourne.
Bedard, J., Graham, L., & C. Jackson. (2005). Information systems risk and audit planning. International Journal of Auditing, 9, 147.
Calota, G. & Vinatoru, S. S. (2015). Techniques and procedures to obtain audit evidence assets. Internal Auditing & Risk Management, 1(1), 13–23.
Carpenter, T., Durtschi, C., & Gaynor, L. M. (2002). The role of experience in professional skepticism, knowledge acquisition, and fraud detection. American Accounting Association Mid-Year Auditing Meeting, 1-28.
Drogalas, G., Ioannis, S., Dimitra, K., & Ioannis, D. (2015). Tax audit effectiveness in Greek firms: Tax auditors’ perceptions. Journal of Accounting, and Taxation, 7(7), 123-130.
Ernst and Young. (2015). The future of assurance: How technology is transforming the audit. Retrieved March, 20, 2017. From https://www.ey.com/uk/en/services/assurance/ey-the-future-of-assurance-viewpoint-series
Furiady, O. & Kurnia, R. (2015). The effect of work experiences, competency, motivation, accountability, and objectivity towards audit quality. Procedia-Social and Behavioral Sciences, 211, 328-335.
González-Benito, J. & González-Benito, Ó. (2010). A study of determinant factors of stakeholder environmental pressure perceived by industrial companies. Business Strategy and the Environment, 19(3), 164–181.
Hair, J. F., Black, W.C., Babin, B., J. & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective. New Jersey: Pearson Prentice Hall.
Hatfield C., R., Jackson, B., S., & Vandervelde, D., S. (2011). The effects of prior auditor involvement and client pressure on proposed audit adjustment. Behavioral Research in Accounting, 23(2), 117-130.
Hurtt, R. K. (2010). Development of a scale to measure professional skepticism. Auditing, 29(1), 149–171.
International Accountants Education Standards Board. (2008). International Education Standards (IES8): Competence Requirements for Audit Professionals. New York, NY. 1-14.
Institute of Internal Auditors. ( 2016). International Standards for the Professional Practice of Internal Auditing. Altamonte Springs.
Isa, K. & Pope, J. (2011). Corporate tax audits : Evidence from Malaysia. Global Review of Accounting and Finance, 2(1), 42–56.
Kaspina, S. (2015). Continuing professional development of accounting and auditing: Russian experience and challenges. Procedia-Social and Behavioral Sciences, 191, 550 – 553.
Khampichit, U. & Ussahawanitchakit, P.(2011). Audit ethical al orientation of CPAs in Thailand: An empirical investigation of the antecedents and consequences. Journal of International Management Studies, 11(2), unpaged.
Knapp, A. C. & Knapp, C. M. (2001). The effects of experience and explicit fraud risk assessment in detecting fraud with analytical procedures. Accounting, Organizations and Society, 26, 25-37.
Laohamethanee, W., Ussahawanitchakit, P. & Boonlua, S. (2013). Internal audit skepticism and firm value of Thai-listed firms: An empirical investigation of its antecedents and consequences. Review of Business Research, 13(3), 123.
Lee, C. S., Su, M. J., Tsai, B. S., Lu, L.T., & Dong, W. (2016). A comprehensive survey of government auditors’ self-efficacy and professional development for improving audit quality. Springerplus, 5, 1-25.
Likert, R. (1932). A Technique for the measurement of attitudes. New York:Archives of Psychology.
Lysaght, M. R. & Altschuld, W.J. (2000). Beyond initial certification: the assessment and maintenance of competency in professions. Evaluation and Program Planning, 23, 95-104.
Maria, E. & Ariyani, Y. (2014). E-commerce impact: The impact of e-audit implementation on the auditor's performance. Indian Journal of Commerce and Management Studies, 5(3), 1–8.
Mela, F. N., Zarefar, A., & Andreas. (2016). The relationship of professional commitment of auditing student and anticipatory socialization toward whistleblowing intention. Procedia-Social and behavioral Sciences, 219, 507-512.
Moorthy, K., Mohamed, Z. S., Gopalan, M., & Dan, H. L. (2011). The impact of information technology on internal auditing. African Journal of Business Management, 5(9), 3523-3539.
Musig, P. & Ussahawanitchakit, P. (2011). Dynamic audit competency and the antecedents and consequences: evidence from tax auditors in Thailand. International Journal of Business Research, 11(3), 47.
Nelson, M. W. (2009). A Model and literature review of professional skepticism in auditing. Auditing: A Journal of Practice & Theory, 28(2), 1-34.
Nunnally, J.C. & Bernstein, I. H. (1994). Psychometric Theory. New York: McGraw- Hill.
Ortegren, M., Downen, T., & Kim, S. (2016). Linking skepticism judgment with skeptical action: Consideration of potentially influential client and professional factors. Retrieved February, 12, 2017. From https://ssrn.com/abstract=2727864
Paino, H., Thani, A., & Si, Z. I. S. (2012). Organizational and professional commitment on dysfunctional audit behaviour. African Journal of Business management, 6(4), 1434-1440.
Perez-Batres, L. A., Jonathan P. D., Van V. M. & Michael J. P. (2012). Stakeholder pressures as determinants of CSR strategic choice: Why do firms choose symbolic versus substantive self-regulatory codes of conduct?. Journal of Business Ethics, 110, 157-172.
Pflugrath, G., Marinov-Bennie, N., & Chen, L. (2007). The impact of code of ethics and experience on auditor judgments. Managerial Auditing Journal, 22(6), 566-589.
Revenue Department. (2017). 12-hour Training of Tax Auditors. Retrieved May, 1, 2017. From https://www.rd.go.th/publish/23514.0.html.
Samuel, H. N. & Afiah, N. N. (2013). The impact of objectivity, proficiency and due professional care of auditors to quality of performance audit results : Survey on audit teams of Jakarta Provincial Inspectorate. Proceedings of 8th Asian Business Research Conference, 1 - 2 April 2013, Bangkok, Thailand.
Sarwoko, I. & Agoes, S. (2014). An empirical analysis of auditor’s industry specialization, auditor’s independence and audit procedures on audit quality: Evidence from Indonesia. Procedia-Social and Behavioral Sciences. 164, 271-281.
Schultz, J. J., Bierstaker, L. J., & O'Donnell, E. (2010). Integrating business risk into auditor judgment about the risk of material misstatement: The influence of a strategic systems audit approach. Accounting, Organizations and Society, 35(2), 238-251.
Syamsuddin, Sudarma, M. I., Habbe, H. A., & Mediaty. (2014). The influences of ethics, independence, and competence on the quality of an audit through the influence of professional skepticism in Bpk of South Sulawesi, Central Sulawesi and West Sulawesi. Journal of Research in Business and Management, 2(7), 8-14.
Taddei, S. A. & Siddiqui, J. (2016). Regulation and the promotion of audit ethics: Analysis of the content of the EU’s policy. Journal of Business Ethics, 139, 183-195.
Tudor, G. C., Gheorghe, M., Oancea, M., & Sova, R. (2013). An analysis framework for defining the required IT&C competencies for the accounting profession. Accounting and Management Information Systems, 12(4), 671-696.
Ussahawanitchakit, P. (2012). Audit independence of tax auditors in Thailand: roles of ethical orientation, professional responsibility, stakeholder pressure, and audit experience. Journal of Academy of Business and Economics, 12(1).
Wang, X., Wang, Y., Yu, L., Zhao, Y., & Zhang, Z. (2015). Engaging audit partner experience and audit quality. China Journal of Accounting Studies, 3(3), 230-253.
Wong, P.S.P. & Cheung, S.O. (2008). An analysis of relationship between learning behavior and performance improvement of contracting organizations. International Journal of Project Management, 26(2), 112-123.
Zarefar, A., Andreas, & Zarefar A. (2016). The influence of ethics, experience and competency toward the quality of auditing with professional auditor skepticism as a moderating variable. Procedia-Social and Behavioral Sciences, 219, 828-832.