The Factors Affecting Audit Quality

Tigor Sitorus; Tonny Hendratono; Nesia Fransisca

doi:10.14414/jebav.v23i2.2137

Authors

Tigor Sitorus Indonesian Police Science College http://orcid.org/0000-0001-7477-9537
Tonny Hendratono STIPRAM JOGYAKARTA
Nesia Fransisca Universitas Bunda Mulia

DOI:

https://doi.org/10.14414/jebav.v23i2.2137

Keywords:

Professionalism, Ethics, Acceptability, Quality, Audit, Client

Abstract

This study aims to extend and investigate the relationship between professionalism, implementation of professional ethics, and audit quality by proposing client acceptability as a mediating variable for filling the previous research gap. It is a quantitative method conducted at public accountant offices in Jakarta with 176 respondents from 41 offices. The data were analyzed using the Structural Equation Model. The model is good and the Confirmatory Factor Analysis proves to have a high loading. The results show that professionalism has an insignificant negative effect on audit quality, but it has a significant negative effect on client acceptability. The implementation of professional ethics has a significant positive effect on audit quality and client acceptability. The client acceptability has a significant positive effect on audit quality. The result proves that client acceptance mediates the effect of implementing professional ethics on audit quality. The implication of this study is to contribute to the public accounting firm in a low-risk client acceptance policy in providing information so that public accountants can avoid submitting misleading financial information.

References

Alareeni, B. A. (2019). The associations between audit firm attributes and audit quality-specific indicators: A meta-analysis. Managerial Auditing Journal, 34(1), 6-43.

Al-Khaddash, H., Al Nawas, R., & 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.

Arens, A. A., Elder, R. J., & Mark, B. (2012). Auditing and assurance services: an integrated approach. Boston: Prentice-Hall.

Arbuckle, J. L. (1997). Amos 7.0 User's Guide. Chi-cago, IL: SPSS, Inc.

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.

Brown, V. L., Gissel, J. L., & Neely, D. G. (2016). Au-dit quality indicators: perceptions of junior-level auditors. Managerial Auditing Journal, 31(8/9), 949-980.

Budisusetyo, S. (2018). Moral Character: Challenges for Auditors in Serving Public Interest. Journal of Economics, Business, & Accountancy Ventura, 21(1), 61-77

Dinha, T. T. L., & Dob, D. T. (2020). Determinants in-fluencing the quality of accounting service: The case of accounting service firms in Hanoi, Vi-etnam. Management Science Letters, 10, 675-682.

Ferdinand, A. (2014). Structural equation modeling dalam penelitian manajemen. Semarang: Badan Penerbit Universitas Diponegoro

Futri, P. S., & Juliarsa, G. (2014). Pengaruh Indepen-densi, Profesionalisme, Tingkat Pendidikan, Etika Profesi, Pengalaman, Dan Kepuasan Kerja Auditor Terhadap Kualitas Audit Pada Kantor Akuntan Publik Di Bali. E-Jurnal Akuntansi Uni-versitas Udayana, 8(1), 41-58.

Giri, E. F. (2010). Pengaruh Tenur Kantor Akuntan Publik (KAP) dan Reputasi KAP terhadap Kualitas Audit: Kasus Rotasi Wajib Auditor di Indonesia. Simposium Nasional Akuntansi XIII, 1-26.

Heri, S. (2017). Auditing & Asurans Pemeriksaan Akuntansi Berbasis Standar Audit Internasional. Gramedia Widiasarana Indonesia.

Herrbach, O. (2001). Audit quality, auditor behav-iour and the psychological contract. European Accounting Review, 10(4), 787-802.

Institut Akuntan Publik Indonesia (IAPI). (2011). Standar Profesional Akuntan Publik. Jakarta: Salemba Empat.

Institut Akuntan Publik Indonesia (IAPI). (2012). Standar Profesional Akuntan Publik, SA, 230, Ja-karta: Salemba Empat.

Jelic, M. (2012). The Impact of Ethics on Audit Qual-ity Results. International Journal for Quality Re-search, 6(4), 333-342

Kandeh, J. O., Samadiyan, B., & Shadkamaga, B. (2014). The Effect of Client Importance on Quality of Audit Firms Accepted in Tehran Stock Ex-changeâ€. Indian J. Sci. Res., 7(1), 121-129.

Konrath, L. F. (2002). Auditing: a risk analysis ap-proach. South-Western.

Kurnia, W., Khomsiyah, K., & Sofie, S. (2014). Pengaruh Kompetensi, Independensi, Tekanan Waktu, dan Etika Auditor terhadap Kualitas Audit. Jurnal Akuntansi Trisakti, 1(2), 49-67.

Kusumawati, A., & Syamsuddin, S. (2018). The effect of auditor quality to professional skepticism and its relationship to audit quality. International Journal of Law and Management, 60(4), 998-1008.

Lesmana, R., & Machdar, N. M. (2015). Pengaruh profesionalisme, kompetensi, dan indepen-densi auditor terhadap kualitas audit. Jurnal Akuntansi, Fakultas Ekonomi Institut Teknologi dan Bisnis Kalbis, 2(1), 33-40.

Liu, L. L., Xie, X., Chang, Y. S., & Forgione, D. A. (2017). New clients, audit quality, and audit partner industry expertise: Evidence from Tai-wan. International Journal of Auditing, 21(3), 288-303.

Mardijuwono, A. W. & Subianto, C. (2018). Inde-pendence, professionalism, professional skepti-cism. Asian Journal of Accounting Research, 3(1), 61-71.

Munggarani, L. A. (2017). Pengaruh Profesionalisme dan Independensi Auditor Internal terhadap Kualitas Audit Internal. JASa (Jurnal Akuntansi,

Audit dan Sistem Informasi Akuntansi), 1(2), 87-97.

Messier, W. F., Glover, S. M., & Prawitt, D. F. (2017). Auditing & assurance services: A systematic ap-proach. Boston, MA: McGraw-Hill Irwin.

Mulyadi (2013). Auditing. Jakarta: Salemba Empat.

Mutia, K. (2015). Pengaruh Pertimbangan Pen-erimaan Klien Terhadap Reputasi Kantor Akuntan Publik. Jurnal Risek Akuntansi, 7(1), 97-125.

Nasrabadi, A., & Arbabian, A. (2015). The effects of professional ethics and commitment on audit quality. Management Science Letters, 5(11), 1023-1028.

Pandoyo (2016). The Effect of Auditor Competence, Independence, Audit Experience, Organiza-tional Culture and Leadership against Auditor Professionalism and Its Implication on Audit Quality. International Journal of Advanced Re-search, 4(5), 1632-1646.

Paramita, N. K. A., & Latrini, N. M. Y. (2015). Pengaruh Ukuran Perusahaan, Umur Publikasi, Masa Perikatan Audit, Pergantian Manajemen pada Kualitas Audit. E-Jurnal Akuntansi Univer-sitas Udayana, 13(2015), 142-156.

Pardede, R., & Manurung, R. (2015). Prosedur dan Aplikasi Program AMOS dalam Penelitian Model Persamaan Struktural. Jakarta: Harfame-dia.

Rinaldi, S. (2016). Auditor Professionalism effect on The Quality Audit. Qualitative and Quantitative Research Review, 1(3), 151-160.

Sanno, K. L. U. & Ussahawanitchakit, P. (2008). Ef-fects of Relationship Quality and Professional-ism on Quality of Audit of Thai Auditors: Roles of Competitive Environments and Regulation Flexibility. IABE-2008 Stockholm-Proceedings, 6(1), pp. 228-236.

Siddik, S. A. & Yusuf, M. (2015). Faktor-Faktor Yang Mempengaruhi Keputusan Penerimaan Perikatan Audit (Studi Kasus Pada Kantor Akuntan Publik Di Kota Palembang). In Seminar Nasional Ekonomi Manajemen Dan Akuntansi (Snema) Fakultas Ekonomi Universitas Negeri Padang. Padang.

Siti, K. & Ely, S. (2010). Perpajakan Teori dan Teknis Perhitungan. Bandung: Graha Ilmu.

Sunyoto, D. (2014). Auditing (Pemeriksaan Akuntansi). Yogyakarta: Center of Academic Publishing Service.

Susilo, P. A., & Widyastuti, T. (2015). Integritas, Ob-jektivitas, Profesionalime Auditor dan Kualitas Audit di Kantor Akuntan Publik Jakarta Se-latan. JRAP (Jurnal Riset Akuntansi dan Perpa-jakan), 2(01), 65-77.

Suyono, E. (2012). Determinant factors affecting the audit quality: An Indonesian perspective. Global Review of accounting and Finance, 3(2), 42-57.

Syamsuddin, Sudarma, I. M., Habbe, A. H. & Medi-aty (2014). The effects of ethics, independence, and competence on the quality of an audit through the effect of professional skepticism in BPK of South Sulawesi, Central Sulawesi and West. Quest Journals Journal of Research in Busi-ness and Management, 2 (7), 8-14.

Syahmina, F., & Suryono, B. (2016). Pengaruh Pen-galaman, Etik Profesi, Objektifitas dan Time Deadline Pressure Terhadap Kualitas Audit. Jurnal Ilmu dan Riset Akuntansi (JIRA), 5(4), 1-19.

TodoroviÄ‡, Z. (2018). Application of Ethics in the Ac-counting Profession with an Overview of the Banking Sector. Journal of Central Banking Theory and Practice, 7(3), 139-158.

Triyanthi, M. & Budiartha, K. (2015). Pengaruh Profesionalisme, Etika Profesi, Independensi, dan Motivasi Kerja pada Kinerja Internal Audi-tor. E-Jurnal Akuntansi Universitas Udayana, 10(3), 797-809.

Wahyuni, S. & Rasuli, M. (2015). Pengaruh Komit-men Profesional Terhadap Tekanan Anggaran Waktu Yang Dirasakan Dan Perilaku Dis-fungsional Audit. Jurnal Akuntansi, 4 (1), 54-69.

Widagdo, B. & Widayat. (2011). Permodelan persa-maan structural. Malang: Penerbitan Univesitas Muhammadiyah.

Wittek, R., van der Zee, T., & MÃ¼hlau, P. (2008). Client acceptance decisions of Dutch auditing partners. Journal of Management & Governance, 12(1), 93-115.