Exploratory Factor Analysis for Items Measuring of The Tax Auditors’ Performance

Analisis Faktor Eksploratori untuk Item Pengukuran Prestasi Juruaudit Cukai

Authors

  • Mohmad Hazar Ahmad Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia
  • Mazlina Mustapha Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia
  • Yusniyati Yusri Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia
  • Saira Kharuddin Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia

DOI:

https://doi.org/10.53840/ejpi.v11i1.169

Keywords:

Auditors’ effort, professional skepticism, task complexity, tax auditors’ performance

Abstract

Tax auditors play an essential role in tax audits to ensure governments can overcome non-tax compliance issues and protect tax revenues for the nation. Tax auditors are expected to perform their tasks efficiently and effectively in examining the taxpayer’s declaration. The tax auditors' performance determines the success of tax audit implementation. Several factors can influence the tax auditors’ performance, including auditors’ effort, professional skepticism and task complexity. Therefore, this study aims to develop a valid and reliable research instrument to measure tax auditors’ performance using the Exploratory Factor Analysis and internal reliability test (Cronbach’s Alpha). A total of 100 tax auditors from the Inland Revenue Board of Malaysia and the Royal Malaysian Customs Department were selected as respondents to participate in this study. The data was collected using the online Google Forms with 5 Likert scales and was analysed using IBM-SPSS Version 27. The results show that out of 34 developed items, only 30 remained as constructed items. The remaining items were deleted due to the low loading factor of less than 0.40. Thus, this study validated the research instrument to proceed with the Confirmatory Factor Analysis (CFA) in the following step using the validated research instrument.

Downloads

Download data is not yet available.

Author Biographies

Mazlina Mustapha, Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia

Associate Professor Dr Mazlina Mustapha

Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia

Yusniyati Yusri, Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia

Dr Yusniyati Yusri

Senior Lecturer

Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia

Saira Kharuddin, Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia

Dr Saira Kharuddin

Senior Lecturer

Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia

References

Adediran, S. ., Alade, S. ., & Oshode, A. . (2013). The impact of tax audit and investigation on revenue generation in Nigeria. European Journal of Business and Management, 5(26), 171.

Ahmad, N., Mohammed, Z. M., Iskandar, T. M., Hanefah, H. M. M., & Faizal, S. M. (2014). Outsourcing malaysia federal tax audit: The stakeholders’ views. Jurnal Pengurusan, 41, 13–24. https://doi.org/10.17576/pengurusan-2014-41-02

Ahmad, S. ., Hariri, H., Zawawi, S. N. H. ., & Hassan, R. (2019). Determinants of auditors’ work performance. International Journal of Financial Research, 10(3), 230–238. https://doi.org/10.5430/ijfr.v10n3p230

Aida, N. (2021). Work experience, obedience pressure and task complexity on audit judgment. Golden Ratio of Auditing Research, 1(2). https://doi.org/10.52970/grar.v1i2.51

Al-Khamaiseh, Z., Halim, B. ., Afthanorhan, A., & Alqahtani, A. . (2020). Exploring and developing items measuring situational leadership II (SLII). Humanities & Social Sciences Reviews, 8(2), 579–588. https://doi.org/10.18510/hssr.2020.8266

Alhadi, I., & Nugrahanto, A. (2021). Tax audit quality: An empirical analysis of the use of information technology, competence, task complexity and time pressure. Info Artha, 5(2), 75–92.

Alissa, W., Capkun, V., Jeanjean, T., & Suca, N. (2014). An empirical investigation of the impact of audit and auditor characteristics on auditor performance. Accounting, Organizations and Society, 39(7), 495–510. https://doi.org/10.1016/j.aos.2014.06.003

Amah, C. O., & Nwaiwu, J. N. (2018). Tax audit and practice and down south tax revenue generation in Nigeria. International Journal of Innovative Finance and Economics Research, 6(1), 99–112. www.seahipaj.org

Awang, Z. (2012). Research methodology and data analysis (2nd Edition). In Taylor & Francis Group, LLC. UiTM Press.

Awang, Z. (2015). SEM made simple (1st Ed.). MPWS Rich Publication Sdn Bhd.

Bahkia, A. S., Awang, Z., Afthanorhan, A., Ghazali, L., P., & Foziah, H. (2019). Exploratory factor analysis on occupational stress in context of Malaysian sewerage operations. AIP Conference Proceedings, 2138(1). https://doi.org/10.1063/1.5121111

Bataineh, M. T. (2020). The effect of work ethics on job performance in International Smes in Al-Hassan Industrial Estate. International Review of Management and Marketing, 10(5), 154–158. https://doi.org/https://doi.org/10.32479/irmm.10364

Blaufus, K., Lorenz, D., Milde, M., Peuthert, B., & Schwäbe, A. N. (2021). Negotiating with the tax auditor: Determinants of tax auditors’ negotiation strategy choice and the effect on firms’ tax adjustments. Accounting, Organizations and Society. https://doi.org/10.1016/j.aos.2021.101294

Brazel, J. F., Jackson, S. B., Schaefer, T. J., & Stewart, B. W. (2016). The outcome effect and professional skepticism. The Accounting Review, 91(6), 1577–1599. https://doi.org/10.2308/accr-51448

Caillier, J. G. (2010). Factors affecting job performance in public agencies. Public Performance and Management Review, 34(2), 139–165. https://doi.org/10.2753/PMR1530-9576340201

Christen, M., Iyer, G., & Soberman, D. (2006). Job satisfaction, job performance, and effort: A reexamination using agency theory. Journal of Marketing, 70, 137–150. https://doi.org/10.1509/jmkg.2006.70.1.137

Chung, J., & Monroe, G. S. (2001). A research note on the effects of gender and task complexity on an audit judgment. Behavioral Research in Accounting, 13(1), 111–125. https://doi.org/10.2308/bria.2001.13.1.111

Creswell, J. W. (2014). Research design: Qualitative, quantitative and mixed method approaches (4th Ed.). Sage Publications, Inc.

Duh, R. R. R. R., Kuo, L. C. L. C., & Yan, J. C. J. C. (2017). The effects of review form and task complexity on auditor performance. Asia-Pacific Journal of Accounting and Economics, 25(3–4), 449–462. https://doi.org/10.1080/16081625.2017.1346479

Fadillah, M., Azwardi, & Sa’adah, S. (2020). The effect of independence, integrity, and professionalism on the performance of government external auditors: Case study on the Southern Sumatra audit board. Journal of Accounting Finance and Auditing Studies, 6(3), 36–57. https://doi.org/10.32602/jafas.2020.017

Fadly, A. A. M., Kusumawati, A., & Usman, A. (2018). The effect of work experience, motivation, and culture on auditor performance with mediation self-efficacy. International Journal of Advanced Research, 6(12), 432–445. https://doi.org/10.21474/IJAR01/8156

Hair, J.F., Michael, P., & Brunsveld, N. (2020). Essential of business research methods. In Routledge. Routledge. https://doi.org/10.4324/9780429203374-1

Hair, J. F., Black, B., Babin, B., Anderson, R. E., & Tatham, R. L. (2014). Multivariate Data Analysis (7th Ed.). In Harlow: Pearson.

Hair, J. F., Black, B., & Babin, B. J. (2010). Multivariate data analysis: Global edition (7th Ed.). Pearson Education Limited.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2018). Multivariate data analysis (8th Edition). Annabel Ainscow. https://doi.org/10.1002/9781119409137.ch4

Handoko, B. L., & Wijaya, S. A. (2020). How information technology intervene competence and effort to auditor performance. 2nd International Conference on E-Business and E-Commerce Engineering (EBEE 2020), 28–34. https://doi.org/https://doi.org/10.1145/3446922.3446928

Hurtt, R. K. (2010). Development of a scale to measure professional skepticism. Auditing: A Journal OfPractice & Theory, 29(1), 149–171. https://doi.org/10.2308/aud.2010.29.1.149

Hussin, S. A. H. S., Iskandar, T. M., Saleh, N. M., & Jaffar, R. (2017). Professional skepticism and auditors’ assessment of misstatement risks: The moderating effect of experience and time budget pressure. Economics and Sociology, 10(4), 225–250. https://doi.org/10.14254/2071-789X.2017/10-4/17

Jackson, S. E., Schuler, R. S., & Werner, S. (2018). Managing human resources, 12th edition. Oxford University Press.

Johari, R. ., Sanusi, Z. ., & Ismail, A. . (2012). Exploratory factor analysis of the ethical orientation scale. Asian Journal of Accounting and Governance, 3(1), 1–11. https://doi.org/10.17576/ajag-2012-3-6511

Khairun, A. L., Nurmala, P., & Adiwibowo, A. S. (2021). Effect of auditor profession ethics, supervision action, and training on junior auditor performance. International Journal of Accounting, Taxation, and Business, 2(1), 14–24.

Lase, E., Hwee, T.S., & Edward, Y.R. (2021). The effect of role conflict and ethical sensitivity on auditor performance with moderation of emotional intelligence. Journal of Economics, Business, & Accountancy Ventura, 24(2), 326–338. https://doi.org/10.14414/jebav.v24i2.2743

Ledesma, R. ., & Valero-Mora, P. (2007). Determining the number of factors to retain in EFA: An easy-to-use computer program for carrying out Parallel Analysis. Practical Assessment, Research and Evaluation, 12(2).

Martinko, M. J., Moss, S. E., Douglas, S. C., & Borkowski, N. anc. (2007). Anticipating the inevitable: When leader and member attribution styles clash. Organizational Behavior and Human Decision Processes, 104, 158–174. https://doi.org/10.1016/j.obhdp.2007.04.003

Muda, H. ., Lognathan, N., Awang, Z., Jusoh, H., & Baba, Z. S. (2018). Application of Theory, Methodology and Analysis in Conducting Research: A Practical guide to Quantitative Research and Thesis Writing (Issue December). Terengganu: Unisza Publisher.

Nehme, R., AlKhoury, C., & Al Mutawa, A. (2020). Evaluating the performance of auditors: a driver or a stabilizer of auditors’ behaviour. International Journal of Productivity and Performance Management, 69(9), 1999–2019. https://doi.org/10.1108/IJPPM-08-2018-0306

OECD. (2019). Joint audit 2019 – Enhancing tax co-operation and improving tax certainty: Forum on tax administration. In OECD Publishing. https://doi.org/10.1787/17bfa30d-en

Pratama, O., Tanno, A., & Kurniawan, R. (2019). Effects of taxation technical training, examination time limits and accountability on tax auditor performance. International Journal of Innovative Science and Research Technology, 4(10).

Pruzan, P. (2016). Research methodology: The amis, practices and ethics of science. Springer International Publishing.

Rahlin, N. ., Awang, Z., Afthanorhan, A., & Aimran, N. (2019). Antecedents and consequences of employee safety climate in the Small Manufacturing Enterprises: Translation, validation and application of the generic safety climate questionnaire. International Journal of Innovation, Creativity and Change, 7(10).

Rashid, N., Hamid, N. A., Assar, A. H., Noor, R. M., Rasit, Z. A., Jaafar, S., & Yazid, A. S. (2018). Determinants of Indicators for Risk Management Process of Royal Malaysian Customs Department. International Journal of Academic Research in Business and Social Sciences, 8(12), 1278–1300. https://doi.org/10.6007/ijarbss/v8-i12/5213

Ratnawati, V., Wahyuni, N., Freddy, D., & Abduh, A. (2021). “Factors maximizing tax auditors’’ performance: Study on Indonesian Directorate General of Taxes.” Problems and Perspectives in Management, 19(4). https://doi.org/10.21511/ppm.19(4).2021.34

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th Edition). Wiley Publication.

Sekaran, U. (2003). Research methods for business: A skill building approach (4th Edition) (7th ed.). John Wiley & Sons.

Septian, I., & Astika, I. B. P. (2019). Halo effect moderating: Impact of professional skepticism on auditor performance. International Research Journal of Management, IT & Social Sciences, 6(4), 189–196. https://doi.org/10.21744/irjmis.v6n4.680

Syafitri, Y. (2016). Pengaruh tekanan ketaatan, kompleksitas tugas, dan pengalaman auditor terhadap pertimbangan audit. Al-Masraf : Jurnal Lembaga Keuangan Dan Perbankan, 1(2), 161–178. http://journal.febi.uinib.ac.id/index.php/almasraf/article/view/54

Tabachnick, G. B., & Fidell, S. L. (2013). Using Multivariate Statistics (6th Edition). Pearson.

Widyakusuma, A., Sudarma, M., & Roekhudin. (2019). The effect of professionalism and experience on audit judgment with task complexity as a moderating variable. International Journal of Multicultural and Multireligious Understanding, 6(2), 97–112. https://doi.org/10.18415/ijmmu.v6i2.644

Xiao, T., Geng, C., & Yuan, C. (2020). How audit effort affects audit quality: An audit process and audit output perspective. China Journal of Accounting Research, 13(1), 109–127. https://doi.org/10.1016/j.cjar.2020.02.002

Downloads

Published

30-04-2024

How to Cite

Ahmad, M. H., Mustapha, M., Yusri, Y., & Kharuddin, S. (2024). Exploratory Factor Analysis for Items Measuring of The Tax Auditors’ Performance : Analisis Faktor Eksploratori untuk Item Pengukuran Prestasi Juruaudit Cukai. E-Jurnal Penyelidikan Dan Inovasi, 11(1), 115–131. https://doi.org/10.53840/ejpi.v11i1.169

Issue

Section

Articles