Moral Character: Challenges for Auditors in Serving Public Interest

The purpose of this research is to examine how auditors’ moral character influences their ethical decision making when faced with an ethical dilemma situation. Organizational ethical climate and the intensity of competition in a public accounting firm are used as a moderating variable. The results of this study have implications as ethical decision quality can be obtained and carried through increased moral character. By identifying the potential drivers for improving auditors’ moral character, this research can inform the discussions and strategies of professional bodies, regulators and government on improving the audit quality of financial reports. The intensity of competition in a public accounting firm may have an impact on improving the quality of auditing services, but on the other hand, also have an impact on ethical issues. This research lays the foundation for competition among public accounting firms being recognized as a major issue in industrial policy in auditing services.

Download Full-text

Determinants of Audit Quality with Auditor's Professionalism Skepticism as a Mediating Variable in Public Accounting Firm (KAP) Medan City

International Journal of Research and Review ◽

10.52403/ijrr.20210915 ◽

2021 ◽

Vol 8 (9) ◽

pp. 102-114

Author(s):

Shabrina Tri Asti Nasution

Keyword(s):

Audit Quality ◽

Educational Institutions ◽

Audit Process ◽

Public Accounting ◽

Professional Skepticism ◽

Accounting Firm ◽

The City ◽

And Training ◽

Good Attitude

The purpose of this study is to detect factors that encourage an increase in auditor professionalism skepticism so that they are able to produce quality audits. It is realized that audit quality comes from a good audit process and the auditor puts forward a good attitude of professional skepticism. The results of this study indicate that the experience and competence of auditors can increase the attitude of skepticism of auditor professionalism and audit quality. In addition, the skepticism of the auditor's professionalism is able to mediate the experience of the auditor and the competence of the auditor affects the quality of the audit. For KAP, especially in the city of Medan, it has an obligation to provide an equal portion of audit assignments to all auditors and provide opportunities for auditors to improve their abilities by attending education and training from both formal and non-formal educational institutions. Keywords: Experience, Competence, Skepticism, Audit Quality.

Download Full-text

Conflict Resolution and Ethical Decision-Making for Engineering Professionals in Global Organizations

Advances in Civil and Industrial Engineering - Contemporary Ethical Issues in Engineering ◽

10.4018/978-1-4666-8130-9.ch015 ◽

2015 ◽

pp. 204-227

Author(s):

Charles R. Feldhaus ◽

Julie Little ◽

Brandon Sorge

Keyword(s):

Decision Making ◽

Conflict Resolution ◽

Ethical Climate ◽

Ethical Decision ◽

Ethical Decision Making ◽

Ethical Issues ◽

Self Awareness ◽

Unethical Practices ◽

Leaders And Followers ◽

And Mathematics

As an introduction to recognizing individual and organizational conflict as well as ethical issues within global firms, the goals of this chapter are to equip Science, Technology, Engineering, and Mathematics (STEM) professionals, especially those in engineering, with solid decision-making tools, including self-awareness, ethical perspectives and theories, ethical decision-making models, and various conflict resolution approaches. Given the current challenges in business and industry that have often led to unethical practices, and ultimately conflict, it is critical that both organizational leaders and followers possess the necessary tools and perspectives to create an ethical climate that deals appropriately with various types of conflict. This chapter examines new trends in conflict coaching and the delivery of ethics training in an effort to provide the aforementioned tools and perspectives.

Download Full-text

Pengaruh Kompetensi,Akuntabilitas, Penerapan Kode Etik, dan Gaya Kepemimpinan terhadap Kualitas Audit di Kap di Medan

Owner ◽

10.33395/owner.v5i2.414 ◽

2021 ◽

Vol 5 (2) ◽

pp. 607-619

Author(s):

Namira Ulfrida Rahmi ◽

Tio Hadi ◽

Susilawati Susilawati ◽

Widia Widia ◽

Adam Fredy

Keyword(s):

Tax Evasion ◽

Goodness Of Fit ◽

Audit Quality ◽

Code Of Ethics ◽

Public Prosecutor ◽

Public Accounting ◽

Accounting Firm ◽

The Public ◽

Measurement Models

Various cases that occurred in KAP are evidence of problems in the KAP environment that affect the quality of auditors in conducting audits. In conducting audits, independent auditors are required to observe professional principles, including professional responsibility, public interest, integrity, objectivity, competence, and professional prudence. However, various cases that arise within the Public Accounting Firm are one of the reasons for the reduced public trust in Public Accounting Firm services, one of which occurred in the case of violations committed by Hasnil M Yasin & Partners where the director of this Public Accounting Firm committed income tax evasion. in Langkat Regency under the demands of the Public Prosecutor Service along with the Langkat regional secretary Surya Djahisa. Hasnil is suspected of committing a criminal act of corruption that resulted in a loss of state funds of 1 billion rupiahs, therefore the researchers conducted tests in assessing competence, accountability, the application of the Code of Ethics and Leadership Styles that affect the quality of audits at KAP Medan city. The population and samples were taken with the saturation technique. The data analysis model uses structural models, measurement models, path diagram designs, conversion of path diagrams into a system of equations, estimates, the goodness of fit, and others to get the desired results with the help of the WrapPls program. The results showed that the competence, accountability, and code of ethics of Medan public accountants did not affect audit quality. Leadership style has an effect on audit quality at KAP Medan City.

Download Full-text

PENGARUH INDEPENDENSI DAN PENGALAMAN AUDITOR TERHADAP KUALITAS AUDIT PADA KANTOR AKUNTAN PUBLIK

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v5i2.2862 ◽

2014 ◽

Vol 5 (2) ◽

pp. 240

Author(s):

Amrulloh Amrulloh ◽

Yuniarti Hidayah Suyoso Putra

Keyword(s):

Audit Quality ◽

Hypothesis Test ◽

Financial Statements ◽

Auditor Independence ◽

Survey Method ◽

Linear Regression Method ◽

Public Accounting ◽

Accounting Firm ◽

Public Accountants

Public accountants are independent auditors who provide services to public, especially in the field of audit of financial statements made by the client. Public accountant’s task is to examine and provide an opinion on the fairness of financial statements of an entity based on the standards set by the Indonesian Institute of Accountants (IAI). Afflicting many companies which in turn involve public accountants, financial cases make the accountants to consider their audit quality. Some factors have a very important role in determining the audit quality, including the auditor independence and experience. Therefore, the issues examined in this study are: (1) Do the auditor’s independence and experience simultaneously have an influence on the quality of the audit? (2) Do the auditor’s independence and experience have a partial effecton audit quality? From that background, this research aims to (1) determine the simultaneous effect of auditor’s independence and experience on the quality of audit, (2) determine the partial effect of auditor’s independence and experience on the quality of audit. This research employs a survey method with questionnaires. The population of this research consists of auditors who work in Public Accounting Firm (KAP) in Malang. Data analysis is performed with validity and reliability test, and classical assumption test whereas hypothesis test with multiple linear regression method. The researcher uses and obtains the primary data by distributing questionnaires to 33 respondents. The result concludes that independence has a partial effect on the quality audit with significant level of 2,049. Simultaneously, the independence and the experience of the auditors affect the audit qualitywith significant level of 8,645. Therefore, both the auditor and the Public Accounting Firm (KAP) are expected to improve their audit quality.

Download Full-text

Ethical Decision Making in Public Accounting Firm

SSRN Electronic Journal ◽

10.2139/ssrn.2992936 ◽

2017 ◽

Cited By ~ 1

Author(s):

Yakobus Kaditti Bangun ◽

Marselinus Asri

Keyword(s):

Decision Making ◽

Ethical Decision ◽

Ethical Decision Making ◽

Public Accounting ◽

Accounting Firm

Download Full-text

PENGARUH PELAKSANAAN STANDAR AUDIT BERBASIS INTERNATIONAL STANDARDS ON AUDITING (ISA) TERHADAP KUALITAS AUDIT

Jurnal ASET (Akuntansi Riset) ◽

10.17509/jaset.v9i1.5444 ◽

2017 ◽

Vol 9 (1) ◽

pp. 55

Author(s):

Devianti Harahap ◽

NR Handiani Suciati ◽

Evita Puspitasari ◽

Sakina Rachmianty

Keyword(s):

Financial Services ◽

Audit Quality ◽

International Standards ◽

Research Approach ◽

Public Accounting ◽

Accounting Firm ◽

Auditing Standards ◽

Big Four ◽

Descriptive Method

Abstract. An effort to improve the quality of auditing in Indonesia is achieved by applying the latest auditing standards, which refer to the International Standards on Auditing (ISA). The purpose of this research is to examine the influence of the implementation of auditing standards based on International Standards on Auditing (ISA) towards audit quality. Independent variables of this research is the effects of the implementation of auditing standards based on International Standards on Auditing (ISA) towards audit quality. The dependent variable of this research is audit quality. The method that was used in this research is descriptive method by using the survey research approach of data. The research was employed for a sample consisting of 40 auditors who work at Public Accounting Firm in Bandung which are registered in Financial Services Authority (FSA) and Big Four Public Accounting Firm . The analysis method that was used in this research is simple linear regression anlysis. The result shows that the implementation of auditing standards based on International Standards on Auditing (ISA) has a significant influence on the audit quality at 15,2%, and the rest of 84,2% is influenced by other variables which are not included in this research.Keywords: international standards on auditing (isa); audit quality Abstrak. Salah satu upaya untuk meningkatkan kualitas audit di Indonesia adalah dengan diterapkannya standar audit yang mengacu kepada International Standards on Auditing (ISA) oleh Institut Akuntan Publik Indonesia (IAPI). Penelitian ini bertujuan untuk menguji kembali apakah pelaksanaan standar audit berbasis ISA telah berpengaruh terhadap kualitas audit pada Kantor Akuntan Publik. Penelitian dilakukan dengan menggunakan variabel independen yaitu pelaksanaan standar audit berbasis ISA, sedangkan variabel dependen dalam penelitian ini adalah kualitas audit. Metode yang digunakan dalam penelitian ini adalah metode deskriptif dengan jenis penelitian survey data. Sampel yang digunakan yaitu sebanyak 40 auditor pada Kantor Akuntan Publik Komisariat Wilayah Bandung yang terdaftar di Otoritas Jasa Keuangan. Metode analisis yang digunakan dalam penelitian ini adalah analisis regresi linier sederhana. Hasil penelitian menunjukkan bahwa pelaksanaan standar audit berbasis ISA berpengaruh secara signifikan sebesar 51,6% terhadap kualitas audit, sedangkan sisanya sebesar 48,4% dapat dijelaskan oleh variabel lain diluar penelitian ini.Kata Kunci: international standards on auditing (isa); kualitas audit

Download Full-text

Conflict Resolution and Ethical Decision-Making for Engineering Professionals in Global Organizations

Leadership and Personnel Management ◽

10.4018/978-1-4666-9624-2.ch094 ◽

2016 ◽

pp. 2097-2120

Author(s):

Charles R. Feldhaus ◽

Julie Little ◽

Brandon Sorge

Keyword(s):

Decision Making ◽

Conflict Resolution ◽

Ethical Climate ◽

Ethical Decision ◽

Ethical Decision Making ◽

Ethical Issues ◽

Self Awareness ◽

Unethical Practices ◽

Leaders And Followers ◽

And Mathematics

Download Full-text

ETHICAL CLIMATE INDEX: EVIDENCE OF VALIDITY OF THE BRAZILIAN VERSION

RAM Revista de Administração Mackenzie ◽

10.1590/1678-6971/eramg190030 ◽

2019 ◽

Vol 20 (3) ◽

Author(s):

JULIANA G. ALMEIDA ◽

JULIANA B. PORTO

Keyword(s):

Ethical Leadership ◽

Ethical Climate ◽

Goodness Of Fit ◽

Ethical Decision ◽

Ethical Decision Making ◽

Ethical Issues ◽

Climate Index ◽

Empirically Supported ◽

Brazilian Version ◽

The One

ABSTRACT Purpose: Ethical issues have been a growing concern in Brazilian organizations. One of the variables that have been studied in this field is the Ethical climate. Victor and Cullen’s (1988) measure is the one most applied to address this phenomenon. This scale has been criticized because its structure has not been empirically supported and the need for update measures has been highlighted. As an answer to this critique, Arnaud (2010) proposed the Ethical climate index - the ECI. This measure uses Rest’s (1984) model of ethical decision-making as a background. The main goal of this work was to develop a Brazilian version of the ECI. Originality/value: The ECI does not yet have a Brazilian version. Design/methodology/approach: The first study presents the translated measure, an exploratory and confirmatory study of the factorial structure on a sample of 1,306 employees. In Study 2 (sample of 3,087 employees), we performed first and second order confirmatory analyses of the structure found in Study 1 in a different sample. Findings: The original model showed better goodness of fit in both studies. Additionally, relationships with ethical leadership and abusive leadership were identified. Overall, findings suggest the scale presents good psychometrical properties, presenting itself as a good measure to evaluate ethical climate.

Download Full-text

Pengaruh Independensi, Kompetensi, Profesionalisme, dan Integritas Terhadap Kualitas Audit dengan Etika Auditor Sebagai Moderasi

JURNAL ILMIAH AKUNTANSI UNIVERSITAS PAMULANG ◽

10.32493/jiaup.v9i2.9186 ◽

2021 ◽

Vol 9 (2) ◽

pp. 151

Author(s):

Naila Syamlan ◽

Sistya Rachmawati

Keyword(s):

Sampling Method ◽

Audit Quality ◽

Analysis Method ◽

Public Accounting ◽

Accounting Firm ◽

The Public ◽

Dependent Variables ◽

Independent Variable ◽

Second Tier

The objective of this research is to examine and to analyze the effect of Independence (I), Competence (K), Professionalisme (P), and Integrity (IT) towards The Quality of Audit with Auditor Ethics as Moderating Variable in the public accounting firm second thier located in DKI Jakarta. The sample was extracted using random sampling method. The research sample of 120 respondents in 6 have the public accounting firm second tier located in Jakarta. This research uses multiple regression analysis method. In this study has six variables, which consists of independent moderating and dependent variables. The independent variable: independence, competence, professionalism and integrity, while the dependent variable is the quality of its audit. The moderating variable is auditor ethics. Based on the results of this study concluded that the independence, competence, profesionalism, and integrity positive significant effect on audit quality.

Download Full-text

The Effect of Competence, Independence, and Professional Auditors to Audit Quality

JHSS (JOURNAL OF HUMANITIES AND SOCIAL STUDIES) ◽

10.33751/jhss.v1i1.363 ◽

2017 ◽

Vol 1 (1) ◽

pp. 1-4

Author(s):

Lia Dahlia Iryani

Keyword(s):

Social Sciences ◽

Regression Analysis ◽

Audit Quality ◽

Linear Regression Analysis ◽

Multiple Linear Regression Analysis ◽

Public Accounting ◽

Accounting Firm ◽

The Public ◽

Public Accountant

Abstract. The objectives to be achieved in this research are as follows: 1. To know the auditor's competence to audit quality, 2. To know the auditors independence to audit quality, 3. To know auditors professionalism to audit quality. This research uses Multiple Linear Regression Analysis with Statistical Package for Social Sciences (SPSS) Ver program.21:00. The subjects of this research are 18 Public Accountant Firm in South Jakarta with the number of respondents as many as 97 respondents. Based on the results of hypothesis testing and refers to the formulation and objectives of this study, it can be drawn conclusions as follows: 1. Competence auditors in carrying out the audit have a positive and significant impact on audit quality at Public Accounting Firm in South Jakarta, so the more competent an auditor The better the quality of the audit, 2. The independence of the auditor in conducting the audit has a positive and significant impact on the quality of audit at the Public Accountant Office in South Jakarta, so the higher the auditor's independence attitude the higher the audit quality, 3. Auditor professionalism in conducting audit has a positive and significant impact on audit quality at Public Accountant Office in South Jakarta, so the higher the auditor's professionalism, the higher the audit quality. Keywords: Competence, Indepedence, Professional, Audit Quality.

Download Full-text