scholarly journals THE EFFECT OF AUDITOR’S COMPETENCE AND INDEPENDENCE ON INFORMATION SYSTEM AUDIT QUALITY

2020 ◽  
Vol 5 (2) ◽  
pp. 183
Author(s):  
Santy Setiawan ◽  
Yenni Carolina ◽  
Aura Kristiani
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Audit Quality ◽  
Financial Statements ◽  
Public Accounting ◽  
Accounting Firms ◽  
External Auditors ◽  
Test Instrument ◽  
Regression Test ◽  
Information Systems Use

Users of financial statements always rely on the results of audits conducted by competent andindependent auditors because the audits are carried out through quality processes and efforts. Competent and independent auditors are needed to obtain quality audit results. Because most modern information systems use information technology, the information technology audits become an important component in all external and internal audits. This study aims to examine the effect of auditor’s competence and auditor’s independence on the information systems audit quality. The research sample used in this study is external auditors working in public accounting firms in West Java. The statistical test instrument used is a multiple regression test. The results show that the auditor's competence has an effect on information systems audit quality, while the auditor’s independence has no effect on information systems audit quality.

scholarly journals ANALISIS FRAUD PENTAGON TERHADAP KECURANGAN LAPORAN KEUANGAN PADA SEKTOR PERUSAHAN MANUFAKTUR YANG TERDAFTAR Di BURSA EFEK INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 153
Author(s):  
Delviana Dama Yanti
Keyword(s):  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Public Accounting ◽  
Accounting Firms ◽  
External Auditors ◽  
Public Accounting Firms ◽  
Fraudulent Financial Statements

ABSTRACT The purpose of this research is see the effect of pentagon fraud proxied by financial targets, nature of the industry, quality of external auditors, change of auditors, number of CEOs who frequently detect fraud in financial statements. Financial statement fraud in this study was measured using the proxies of Return on Assets, Receivables, selection of audit services at public accounting firms, changes in public accounting firms, changes in directors, and the number of CEO photos. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2017-2019. This study uses a purposive sampling technique so, there are 48 financial reports from 25 manufacturing companies. The analytical method used is multiple linear regression analysis with SPSS version 20. The results of this study indicate that financial targets, nature of industry, quality of external auditors and the number of CEOs who often do not have a significant effect in the handling of fraudulent financial statements. Meanwhile, changes in auditors and changes in direction have a significant effect on fraudulent financial statements

scholarly journals PEOPLE AND AUDIT PROCESS ATTRIBUTES OF AUDIT QUALITY: EVIDENCE FROM MALAYSIA

2019 ◽  
Vol 18 (2) ◽  
pp. 47
Author(s):  
NOOR ADWA SULAIMAN ◽  
SUHAILY SHAHIMI ◽  
RANJIT KAUR NASHTAR SINGH
Keyword(s):  
Audit Quality ◽  
Internal Quality ◽  
Audit Process ◽  
Public Accounting ◽  
Accounting Firms ◽  
External Auditors ◽  
Public Accounting Firms ◽  
Group 2 ◽  
Audit Team ◽  
Group 1

This study seeks to add to understanding of the concept and attributes of audit quality from the perspective of those responsible for delivery audit services, the auditors, as a key constituent group in the auditing system. The study surveyed two groups of external auditors (group 1- audit partners and managerial level and, group 2 - senior auditors and junior auditors), as a basis to compare their perceptions on important of auditors and audit process attributes in achieving audit quality in practice. The study was conducted in the form of a survey, with data being gathered via questionnaire. Returned surveys from external auditors yielded a 37% response rate. Overall, top 5 highest rated attributes of audit quality reported to be most important in determining audit quality are: compliance with the International Standard Quality Control (ISCQ) 1, obtaining credible and sufficient audit evidence, technical expertise of audit team, audit work meeting the audit firms’ quality standards, and competency of the audit team. Further analysis shows that the two groups of respondents have differential views on attributes of audit quality in practice. Group 1 perceived attributes of audit quality are related to auditor’s assessment of risk and internal quality review procedures within the audit firm. In comparison, group 2 perceived auditors’ competency and compliance with relevant standards as indicators of audit quality. This study suggests differences in underlying view about attributes audit quality in practice by the two groups of auditors. Public accounting firms might be interested to understand such underlying differences so that efforts in improving audit quality in practice would be focusing on the key attributes that perceived to be important on delivery high-quality audit services. This study is significant by extending the literature on audit quality and also provides useful input to public accounting firms in improving audit quality in practice.

Effect of Professional Ethics, Audit Quality, and Workload on Materiality Levels Consideration

2021 ◽  
Vol 3 (1) ◽  
pp. 93-105
Author(s):  
Ni Wayan Rustiarini ◽  
I Kadek Listawan ◽  
Ni Putu Shinta Dewi
Keyword(s):  
Professional Ethics ◽  
Audit Quality ◽  
Financial Statements ◽  
Professional Judgment ◽  
Public Accounting ◽  
Accounting Firms ◽  
Accounting Firm ◽  
Study Population ◽  
Positive Effect ◽  
Ethics Audit

The level of materiality is a professional judgment that affects the auditor's perception of the needs of those who have sufficient knowledge and who place confidence in the financial statements. Materiality relates to decision making that will give rise to confidence in users of financial statements that the financial statements are free from material misstatement and are by accounting principles. This study aims to examine and obtain evidence of the influence of professional ethics, audit quality, and workload on the consideration of Bali public accounting firms' materiality levels. The study population was auditors at Bali's public accounting firm, registered in the Ikatan Akuntan Public Indonesia Directory, which was still active until 2020. The sample in this study was 80 respondents who were determined based on the purposive sampling method. The analytical tool used to test the hypothesis is multiple linear regression. The results showed that professional ethics and audit quality had a positive effect on the materiality level. Meanwhile, the workload does not affect the materiality level consideration.

scholarly journals Pengaruh Capital Adequacy Ratio (CAR), Return On Assets (ROA), dan Non Performing Financial (NPF) Terhadap Penyaluran Pembiayaan pada Bank Umum Syariah yang Terdaftar di Otoritas Jasa Keuangan (OJK) Periode Tahun 2012–2019

2021 ◽  
Vol 17 (1) ◽  
pp. 64-81
Author(s):  
Irma Citarayani ◽  
Melani Quintania ◽  
Dita Paramita Handayani
Keyword(s):  
Financial Statements ◽  
Manufacturing Companies ◽  
Public Accounting ◽  
Return On Assets ◽  
Accounting Firms ◽  
Purposive Sampling ◽  
External Auditors ◽  
External Auditor ◽  
Fraudulent Financial Statements

The purpose of this research is to see the effect of pentagon fraud that proxied by financial targets, nature of the industry, quality of external auditors, change of auditors, number of CEOs who frequently detect fraud in financial statements. Financial statement fraud in this study was measured using the proxies of Return on Assets, Receivables, selection of audit services at public accounting firms, changes in public accounting firms, changes in directors, and the number of CEO photos. The population in research study are use manufacturing companies who listed on the Indonesia Stock Exchange (BEI) in 2017-2019. This research uses a purposive sampling technique so, there are 48 financial reports from 25 manufacturing companies. The analytical method used in this research is multiple linear regression analysis with SPSS version 20. The results of this research indicate that financial targets, nature of industry, quality of external auditors and the number of CEOs who often don’t have a significant effect in the handling of fraudulent financial statements. Meanwhile, changes in auditors and changes in direction have a significant effect from pentagon fraud side on fraudulent financial statements. Tujuan penelitian ini adalah untuk melihat pengaruh fraud pentagon yang di proksikan dengan financial target, nature of industry, quality of external auditor, change of auditor, frequent number of CEO terhadap pendeteksian kecurangan (fraud) laporan keuangan. Kecurangan dalam Laporan Keuangan di penelitian ini diukur menggunakan proksi Return on Assets, Receivable, pemilihan jasa audit pada KAP, pergantian KAP, perubahan direksi, dan banyaknya foto CEO. Perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) pada tahun 2017-2019 digunakan sebagai populasi dalam penelitian ini. Penelitian ini menggunakan teknik purposive sampling sehingga terdapat 48 laporan keuangan dari 25 perusahaan manufaktur. Analisis regresi linear berganda merupakan metode analisis yang digunakan dengan SPSS versi 20. Financial target, nature of industry, quality of external auditor dan frequent number of CEO tidak bepengaruh signfikan dalam mendeteksi adanya kecurangan dalam Laporan Keuangan dalam penelitian ini. Sedangkan, change of auditor dan change of direction berpengaruh signifikan dalam medeteksi kecurangan dalam laporan keuangan.

scholarly journals Analisis Fraud Pentagon Terhadap Kecurangan Laporan Keuangan Pada Sektor Perusahaan Manufaktur

2021 ◽  
Vol 17 (1) ◽  
pp. 31-46
Author(s):  
Delviana Dama Yanti ◽  
Munari Munari
Keyword(s):  
Locus Of Control ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Public Accounting ◽  
Accounting Firms ◽  
External Auditors ◽  
Public Accounting Firms

The purpose of this research is to see the effect of pentagon fraud that proxied by financial targets, nature of the industry, quality of external auditors, change of auditors, number of CEOs who frequently detect fraud in financial statements. Financial statement fraud in this study was measured using the proxies of Return on Assets, Receivables, selection of audit services at public accounting firms, changes in public accounting firms, changes in directors, and the number of CEO photos. The population in research study are use manufacturing companies who listed on the Indonesia Stock Exchange (BEI) in 2017-2019. This research uses a purposive sampling technique so, there are 48 financial reports from 25 manufacturing companies. The analytical method used in this research is multiple linear regression analysis with SPSS version 20. The results of this research indicate that financial targets, nature of industry, quality of external auditors and the number of CEOs who often don’t have a significant effect in the handling of fraudulent financial statements. Meanwhile, changes in auditors and changes in direction have a significant effect from pentagon fraud side on fraudulent financial statements.Tujuan penelitian ini adalah untuk menganalisis pengaruh moderasi locus of control, faktor-faktor yang mempengaruhi sistem informasi keuangan pada kantor kecamatan di kota Semarang. Populasi penelitian ini adalah 16 Kantor Kecamatan di Kota Semarang dan diperoleh 54 kuesioner, kemudian dianalisis analisis regresi moderasi (MRA). Dari hasil penelitian pengaruh Locus of Control Moderation terhadap Efektifitas Sistem Informasi Keuangan pada Kantor Kecamatan Kota Semarang Provinsi Jawa Tengah diperoleh hasil penelitian hipotesis pertama yaitu pengaruh manajemen puncak terhadap efektivitas sistem informasi, untuk menguji pengaruh kepuasan pengguna terhadap efektivitas sistem informasi, untuk menguji pengaruh budaya organisasi terhadap efektivitas sistem informasi. Efektivitas sistem informasi, untuk menguji pengaruh locus of control terhadap hubungan antara manajemen puncak terhadap efektivitas sistem informasi, untuk menguji pengaruh locus of control antara kepuasan pengguna terhadap efektivitas sistem informasi dari hasil penelitian menghasilkan pengaruh yang positif dan signifikan.

scholarly journals Interaksi Indepedensi, Pengalaman, Pengetahuan, Due Professional Care, Akuntabilitas dan Kepuasan Kerja Terhadap Kualitas Audit

2016 ◽  
Vol 18 (2) ◽  
pp. 1
Author(s):  
Melody Iskandar ◽  
Stefani Lily Indarto
Keyword(s):  
Job Satisfaction ◽  
Audit Quality ◽  
Financial Statements ◽  
Audit Process ◽  
Public Accounting ◽  
Accounting Firms ◽  
Care Experience ◽  
Professional Care ◽  
The Relationship ◽  
Public Accountant

<em>This study aims to determine whether job satisfaction influences the relationship between the independence, experience, knowledge, due care professionals, and accountability on audit quality among auditor who worked at public accounting firms in Semarang. The examination results should be able to present accountability and assessment toward fairness of the financial statements, as well as the appropriateness of the financial information with the criteria or rules that have been set. The auditor is expected to carry out the audit properly and resolve any audit process steps, and considering the sufficient audit evidence discovered to ensure the audit quality. The population comprises auditors who work at public accountant firms in Semarang. This research uses 45 auditors as samples. The data is processed using multiple regressions to analyze the relationship between the dependent and independent variables. The results of this study indicate that job satisfaction affects only the relationship between independency and accountability on audit quality. While job satisfaction does not affect the relationship between the due professional care, experience and knowledge to audit quality.</em>

scholarly journals Pengaruh Etika Profesi, Kompetensi dan Integritas Auditor Terhadap Kualitas Audit (Studi Empiris Pada Kantor Akuntan Publik di Kota Medan)

Owner ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 268-282
Author(s):  
Angelica Medistra Megaviesta Fau ◽  
Panondang Siagian ◽  
Wilsa Road Betterment Sitepu
Keyword(s):  
Decision Making ◽  
Professional Ethics ◽  
Sampling Method ◽  
Audit Quality ◽  
Financial Statements ◽  
Research Model ◽  
Public Accounting ◽  
F Test ◽  
Accounting Firms ◽  
Probability Sampling

The auditor is a party that has an important role in auditing financial statements which is used as a benchmark in decision making in an entity. An auditor should be able to uphold his professional ethics and have the competence to be able to do his job. Not only that, because it is in the thick of the interests of various parties, the auditor must have the integrity to be able to state the findings by the actual circumstances. This study aims to determine how Professional Ethics, Competence, and Auditor Integrity affect Audit Quality. The data in this research were obtained through distributing questionnaires and using a sample of 94 auditors who work at 22 public accounting firms in Medan. The research was carried out by obtaining data through a survey using a Likert scale as a benchmark and processing through SPSS. The sample is determined by the probability sampling method and the research model uses the T and F test or also known as multiple liner analysis. Besides, this study also uses classic assumption tests, multicollinearity, and heteroscedasticity to see how competence, integrity, and professional ethics affect audit quality. This study obtained results indicating that, simultaneously and partially, integrity and professional ethics affect audit quality. Meanwhile, competence does not affect significantly and partially but affects simultaneously

An Analysis of Cross-Sectional Differences in Big and Non-Big Public Accounting Firms' Audit Programs

2006 ◽  
Vol 25 (1) ◽  
pp. 27-48 ◽  
Author(s):  
Hans Blokdijk ◽  
Fred Drieenhuizen ◽  
Dan A. Simunic ◽  
Michael T. Stein
Keyword(s):  
Risk Assessment ◽  
Empirical Evidence ◽  
Audit Quality ◽  
Audit Fees ◽  
Public Accounting ◽  
Accounting Firms ◽  
Big 5 ◽  
Public Accounting Firms ◽  
Audit Approach ◽  
Control Risk

A significant body of prior research has shown that audits by the Big 5 (now Big 4) public accounting firms are quality differentiated relative to non-Big 5 audits. This result can be derived analytically by assuming that Big 5 and non-Big 5 firms face different loss functions for “audit failures” and is consistent with a variety of empirical evidence from studies of audit fees, auditor changes, and the stock price reaction to audited earnings. However, there is no existing evidence (of which we are aware) concerning the underlying production differences between Big 5 and non-Big 5 audits. As a result, existing empirical evidence cannot distinguish between the possibility that Big 5 audits are simply perceived to be different (e.g., by investors) or actually differ in how they are produced. Our research objective is to identify the production characteristics of audit engagements that may explain the differences in expected audit quality between Big 5 and non-Big 5 firms. In this archival study, we examine the total audit effort and the allocation of effort to four audit phases—planning, (control) risk assessment, substantive testing, and completion—for a cross-section sample of 113 audits of Dutch companies in 1998/99 by 14 public accounting firms. We find that, after controlling for client characteristics: (1) both types of auditors exert about the same amount of total audit effort; (2) Big 5 auditors allocate relatively more effort to planning and (control) risk assessment, and relatively less to substantive testing and completion; and (3) client size, use of the business-risk-based audit approach, and reliance on client internal controls affect audit hours differently for the two auditor types. We conclude that the Big 5 firms actually produce a higher audit quality level, and that this quality difference is related to how audit hours are deployed in a more contextual and less procedural audit approach.

scholarly journals Kualitas Audit: Ditinjau dari Fee Audit, Risiko Audit dan Skeptisme Profesional Auditor sebagai Variabel Moderating

2020 ◽  
Vol 8 (1) ◽  
pp. 9
Author(s):  
Muslim Muslim ◽  
Syamsuri Rahim ◽  
Muhammad Faisal AR Pelu ◽  
Alma Pratiwi
Keyword(s):  
Regression Analysis ◽  
Audit Quality ◽  
Audit Fees ◽  
Public Accounting ◽  
Audit Risk ◽  
Accounting Firms ◽  
Professional Skepticism ◽  
Audit Fee ◽  
The Relationship ◽  
Positive Effect

The purpose of this study was to determine the effect of audit fees and audit risk on audit quality with auditor professional skepticism as a moderating variable. This research was conducted at 8 public accounting firms in Makassar city with 40 respondents. The analytical method used is multiple regression analysis (Moderated Regression Analysis) which is used to measure the strength of the relationship between two or more variables. The results of this study found that the audit fee variable had a negative and not significant effect on audit quality. These results illustrate that the higher the audit fee received by the auditor, the audit quality will decrease. While audit risk is not a significant positive effect on audit quality. The results of this study illustrate that the higher the audit risk, the audit quality will decrease. The auditor's professional skepticism as a moderating variable is not able to strengthen the effect of audit fees on audit quality. Furthermore, auditor professional skepticism as a moderating variable is also unable to strengthen the effect of audit risk on audit quality

scholarly journals Perceptions of Educators, Accounting Students and Accountants Public Accountant against Ethics of Financial Statement Preparation (Studies at University and KAP in Semarang)

2021 ◽  
Vol 4 (1) ◽  
pp. 89-101
Author(s):  
Imam Prayogo ◽  
Teuku Afrizal
Keyword(s):  
Financial Statements ◽  
Financial Statement ◽  
Accounting Students ◽  
Survey Method ◽  
Analysis Tool ◽  
Validity And Reliability ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Public Accountant

This study aims to examine differences in perceptions between teaching accountants, accounting students, and accountants on the ethics of preparing financial statements. Ethical indicators for the preparation of financial statements are represented in earnings management, misstatements, disclosures, cost-benefits, and responsibilities. This research was conducted at universities and public accounting firms in Semarang. This research was conducted with a survey method of 70 respondents from teaching accountants, 75 accounting students, and 40 accountants respondents at universities and public accounting firms in Semarang. As an analysis tool, ANOVA is used for hypotheses H1, H2, H3, and H4. Before testing the hypothesis, first the validity and reliability tests are carried out for all the questionnaires that have been collected. Validity and reliability tests show that all data are valid and reliable. Then the questionnaire was tested by ANOVA and strengthened by the Independent Sample T Test. Anova results show that there are differences in perceptions between teaching accountants, accounting students and accountants. However, there was no difference in perceptions between teaching accountants and accountants. Therefore it can be concluded that there are differences in perceptions between teaching accountants, accounting students, and accountants on the ethics of preparing financial statements.

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