The effect of auditor competence and independence on audit quality
##plugins.themes.bootstrap3.article.sidebar##
##plugins.themes.bootstrap3.article.main##
Abstract
The Public Accountant (auditor) profession is like a "double-edged sword", on the one hand auditors must pay attention to the credibility and ethics of the profession, but on the other hand they must also face pressure from clients in various decision-making. must face pressure from clients in various decision-making auditor's decision making. If the auditor is unable to resist pressure from clients such as personal, emotional or financial pressure, the auditor's independence will be compromised. personal, emotional or financial pressure, the auditor's independence has been reduced and can affect audit quality. and can affect audit quality. This study aims to analyze and prove empirical evidence of the effect of experience, knowledge, length of contact with clients, pressure from clients, peer review, and non-audit services provided by KAP on audit quality. provided by KAP on audit quality. The sample used was 79 respondents, namely auditors at 18 KAPs in Semarang City. Meanwhile, to answer the research hypothesis using multiple regression analysis tools analysis tool, after previously testing classical assumptions. Based on the results of the study, it can be concluded that experience in conducting audits, the knowledge of an auditor and the review of fellow auditors (peer review) have a positive effect on audit quality. So that the more deeper and broader the knowledge of an auditor and the more experienced in the field of auditing as well as peer review from fellow auditors (peer review). auditing field as well as peer review from fellow auditors, the better the audit quality will be. better the quality of the audit performed. Meanwhile, the length of the relationship with the client, pressure from clients, and non-audit services provided by KAP.
##plugins.themes.bootstrap3.article.details##
Carmichael, D. R. (2004). The PCAOB and the social responsibility of the independent auditor. Accounting Horizons, 18(2), 127.
Choo, F., & Trotman, K. T. (1991). The relationship between knowledge structure and judgments for experienced and inexperienced auditors. Accounting Review, 464–485.
Christiawan, Y. J. (2002). Kompetensi dan independensi akuntan publik: refleksi hasil penelitian empiris. Jurnal Akuntansi Dan Keuangan, 4(2), 79–92.
Cosserat, G., & Rodda, N. (2009). Modern auditing. John Wiley & Sons.
Deis Jr, D. R., & Giroux, G. A. (1992). Determinants of audit quality in the public sector. Accounting Review, 462–479.
Eraut, M., Steadman, S., Furner, J., Maillardet, F., Miller, C., Ali, A., & Blackman, C. (2004). Learning in the professional workplace: relationships between learning factors and contextual factors. AERA Conference Paper, San Diego, 12.
Gosling, S. D., Vazire, S., Srivastava, S., & John, O. P. (2004). Should we trust web-based studies? A comparative analysis of six preconceptions about internet questionnaires. American Psychologist, 59(2), 93.
Gray, D. (2008). Forensic accounting and auditing: Compared and contrasted to traditional accounting and auditing. American Journal of Business Education, 1(2), 115–126.
Guarte, J. M., & Barrios, E. B. (2006). Estimation under purposive sampling. Communications in Statistics-Simulation and Computation, 35(2), 277–284.
Harhinto, T. (2004). Pengaruh keahlian dan independensi terhadap kualitas audit studi empiris pada KAP di Jawa Timur. Semarang. Tesis Maksi: Universitas Diponegoro.
Hox, J. J., & Boeije, H. R. (2005). Data collection, primary versus secondary.
Imam, G. (2005). Aplikasi analisis multivariate dengan program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.
Khalifa, R., Sharma, N., Humphrey, C., & Robson, K. (2007). Discourse and audit change: Transformations in methodology in the professional audit field. Accounting, Auditing & Accountability Journal.
Low, K. (2004). The effects of industry specialization on audit risk assessments and audit‐planning decisions. The Accounting Review, 79(1), 201–219.
Mangena, M., & Pike, R. (2005). The effect of audit committee shareholding, financial expertise and size on interim financial disclosures. Accounting and Business Research, 35(4), 327–349.
Mayangsari, S. (2000). Pengaruh Keahlian Audit dan Independensi terhadap Pendapat Audit: Sebuah Kuasieksperimen. Universitas Gadjah Mada.
Noy, C. (2008). Sampling knowledge: The hermeneutics of snowball sampling in qualitative research. International Journal of Social Research Methodology, 11(4), 327–344.
Okoye, E. I., & Ofoegbu, G. N. (2006). The relevance of accounting and auditing standards in corporate financial reporting in Nigeria; Emphasis on compliance. The Nigerian Accountant, 39(4).
Potoski, M., & Prakash, A. (2004). The regulation dilemma: Cooperation and conflict in environmental governance. Public Administration Review, 64(2), 152–163.
Rezaee, Z. (2004). Restoring public trust in the accounting profession by developing anti‐fraud education, programs, and auditing. Managerial Auditing Journal.
Richard, C. (2006). Why an auditor can’t be competent and independent: A french case study. European Accounting Review, 15(2), 153–179.
Sheu, S., Wei, I., Chen, C., Yu, S., & Tang, F. (2009). Using snowball sampling method with nurses to understand medication administration errors. Journal of Clinical Nursing, 18(4), 559–569.
Spathis, C., & Ananiadis, J. (2005). Assessing the benefits of using an enterprise system in accounting information and management. Journal of Enterprise Information Management.
Staubus, G. J. (2005). Ethics failures in corporate financial reporting. Journal of Business Ethics, 57(1), 5–15.
Tjun, L. T., Marpaung, E. I., & Setiawan, E. (2012). Pengaruh kompetensi dan independensi auditor terhadap kualitas audit.
Tongco, M. D. C. (2007). Purposive sampling as a tool for informant selection. Ethnobotany Research and Applications, 5, 147–158.
Watkins, A. L., Hillison, W., & Morecroft, S. E. (2004). Audit quality: A synthesis of theory and empirical evidence. Journal of Accounting Literature, 23, 153.
Wessels, P. L. (2005). Critical information and communication technology (ICT) skills for professional accountants. Meditari: Research Journal of the School of Accounting Sciences, 13(1), 87–103.
Yiing, L. H., & Ahmad, K. Z. Bin. (2009). The moderating effects of organizational culture on the relationships between leadership behaviour and organizational commitment and between organizational commitment and job satisfaction and performance. Leadership & Organization Development Journal.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.