Audit Quality
The Impact of Expertise, Independence and Ethics of Professional Accountant A Crosssectional Study
DOI:
https://doi.org/10.55208/cs759g25Keywords:
Expertise, Independence, Ethics, Audit QualityAbstract
This study aims to determine the effect of expertise, independence, and ethics on audit quality at the Inspectorate of West Java Province. The study in the initial review of this study found that the audit quality is shown in the opinion given by the examiner, including the opinion "Reasonable Without Exception" is a professional audit statement regarding the "fairness" of the financial statements, not a "guarantee" that no fraud was encountered or the possibility of the occurrence of fraud. Fraud in the future also on the problem of procurement of goods and services that cause indications of regional losses, management of accounts that are not following the provisions, causing potential fraud, management of fixed assets that are still problematic both in terms of administration and utilization and the problem is that the value is still found to be immaterial so that the Audit Board of the Republic of Indonesia gives an opinion "Reasonable Without Exception" (RWE). In the first stage of this research, namely, test the validity and reliability of all valid and reliable variables. In the second stage of conducting a correlation analysis for Expertise, Independence and Ethics on Audit Quality, showing a significant correlation, the relationship between Expertise and Audit Quality obtained a result of 0.813. Independent Relationship with Audit Quality obtained results of 0.751, and the result of Ethics Relationship with Audit Quality obtained results of 0.812. In the third stage, partial regression analysis for all variables proved to be significant, and it was found that the regression coefficient value of Expertise on Audit Quality obtained the result of 0.411. The independent regression coefficient value on Audit Quality is 0.235, and the Ethics regression coefficient on Audit Quality is 0.403. Likewise, in the fourth stage, simultaneous multiple regression analysis of expertise, independence, and ethics has a significant effect on Audit Quality with a total effect of 83.7%.
References
Adams, M. B. (1994). Agency theory and the internal audit. Managerial auditing journal, 9(8), 8-12. https://doi.org/10.1108/02686909410071133
Afiah, N. N., & Rahmatika, D. N. (2014). Factors influencing the quality of financial reporting and its implications on good government governance. International Journal of Business, Economics and Law, 5(1), 111-121.
Alias, N. F., Nawawi, A., & Salin, A. S. A. P. (2019). Internal auditor’s compliance to code of ethics: empirical findings from Malaysian government-linked companies. Journal of Financial Crime, 26(1), 179-194. https://doi.org/10.1108/JFC-07-2017-0066
Aliu, M. M., Okpanachi, J., & Mohammed, N. A. (2018). Auditor’s Independence and Audit Quality: An Empirical Study. International Accounting and Taxation Research Group. www. arteryview.com.
Andrews, M. (2010). Good government means different things in different countries. Governance, 23(1), 7-35. https://doi.org/10.1111/j.1468-0491.2009.01465.x
Arens, A. A., Randal, J. E., Mark, S. B., & Chris, E. H. (2017). Auditing and Assurance Service. Sixteenth Edition, Published by Pearson Aducation.
Barzelay, M. (1997). Central audit institutions and performance auditing: A comparative analysis of organizational strategies in the OECD. Governance, 10(3), 235-260.
Bedard, J. C., Johnstone, K. M., & Smith, E. F. (2010). Audit quality indicators: A status update on possible public disclosures and insights from audit practice. Current Issues in Auditing, 4(1), C12-C19.
Ciger, A. (2020). Audit Quality: A Bibliometric Analysis (1981-2020). Scientific Annals of Economics and Business, 67(4), 473-494.
Eilifsen, A., Messier, W. F., Glover, S. M., Prawitt, D. F. (2014). Auditing & assurance services. McGraw-Hill: Boston.
Gamayuni, R. R. (2018). The effect of internal auditor competence and objectivity, and management support on effectiveness of internal audit function and financial reporting quality implications at local government. International Journal of Economic Policy in Emerging Economies, 11(3), 248-261.
Head, B. W. (2012). The contribution of integrity agencies to good governance. Policy Studies, 33(1), 7-20.
Hikmayah, N., & Aswar, K. (2019). The impact of factors on the audit quality in Indonesia: The moderating effect of professional commitments. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9(4), 285-293. DOI: 10.6007/IJARAFMS/v9-i4/6916
Indah, A. T., & Erina, S. (2019). The role of gender in moderating the effect of competence, independence, and ethics toward audit quality: a case study on finance and development supervision body of East Java Representative. Russian Journal of Agricultural and Socio-Economic Sciences, 87(3), 131-139. DOI: 10.18551/rjoas.2019-03.17
Kallunki, J., Kallunki, J. P., Niemi, L., Nilsson, H., & Aobdia, D. (2019). IQ and audit quality: Do smarter auditors deliver better audits?. Contemporary Accounting Research, 36(3), 1373-1416.
Lee, S. C., Su, J. M., Tsai, S. B., Lu, T. L., & Dong, W. (2016). A comprehensive survey of government auditors’ self-efficacy and professional Development for improving audit quality. SpringerPlus, 5(1), 1-25.
Motubatse, K. N., Ngwakwe, C. C., & Sebola, M. P. (2017). The effect of governance on clean audits in South African municipalities. African Journal of Public Affairs, 9(5), 90-102.
Nor, W., Hudaya, M., & Novriyandana, R. (2019). Financial statements disclosure on Indonesian local government websites: A quest of its determinant (s). Asian Journal of Accounting Research, 4(1), 112-128. https://doi.org/10.1108/AJAR-06-2019-0043
Pamungkas, B., Ibtida, R., & Avrian, C. (2018). Factors influencing audit opinion of the Indonesian municipal governments’ financial statements. Cogent Business & Management, 5(1), 1540256. https://doi.org/10.1080/23311975.2018.1540256
Prawitt, D. F., Smith, J. L., & Wood, D. A. (2009). Internal audit quality and earnings management. The accounting review, 84(4), 1255-1280.
Radcliffe, V. S. (2008). Public secrecy in auditing: What government auditors cannot know. Critical Perspectives on Accounting, 19(1), 99-126.
Roussy, M., & Brivot, M. (2016). Internal audit quality: a polysemous notion?. Accounting, Auditing & Accountability Journal, 29(5), 714-738. https://doi.org/10.1108/AAAJ-10-2014-1843
Sitorus, T., Hendratono, T., & Fransisca, N. (2020). The Factors Affecting Audit Quality. Journal of Economics, Business, & Accountancy Ventura, 23(2), 243-253.
Sutaryo, Naviantia, I. A., & Muhtar (2020). Audit Opinion on Government Financial Report: Evidence from Local Governments in Indonesia. International Journal of Economics & Management, 14(1), 129-144.
Zhukun, L., Wang, C., & Zhang, C. (2018). Government Auditors' Ethics Commitment and Audit Quality. Available at SSRN 3217733.
Downloads
Published
Issue
Section
License
Copyright (c) 2021 Adam Ramdani (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
