The Colonization of Public Accounting Firms by Marketing Expertise: Processes and Consequences

2017 ◽  
Vol 37 (1) ◽  
pp. 191-213 ◽  
Author(s):  
Claire-France Picard ◽  
Sylvain Durocher ◽  
Yves Gendron
Keyword(s):  
Auditor Independence ◽  
Marketing Strategies ◽  
Public Accounting ◽  
Accounting Firms ◽  
Accounting Firm ◽  
Documentary Analysis ◽  
Public Accounting Firms ◽  
Part Time ◽  
Public Accountants ◽  
Using Data

SUMMARY This paper highlights the colonization of public accounting firms by marketing expertise. Using data collected through interviews with auditors and marketing experts, complemented with data generated through documentary analysis, we examine the marketing-oriented transformations that took place in public accounting firms and the important outcomes ensuing from the spread of marketing ideology to the field of auditing. To carry out this work, we developed a customized conceptual framework aimed at enriching our understanding of the “marketization” of public accounting. Empirically, we document the development of various marketing strategies and the underlying translations of public accounting firm day-to-day activities (in terms of business relationships and technical advice) into marketing language. Our findings point to the transformation of public accountants to “part-time” marketers. The results are also suggestive of the colonization of public accountants' minds, whose core values are being subjected to the influence of marketing expertise. This shift engenders important consequences, particularly in potentially compromising auditor independence.

scholarly journals Kompetensi Auditor, Independensi, Skeptisme Profesional dan Kualitas Audit

Akuntabilitas ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 153-168
Author(s):  
Renaldi Renaldi ◽  
Rizal Mawardi
Keyword(s):  
Audit Quality ◽  
Sampling Technique ◽  
Auditor Independence ◽  
Survey Method ◽  
Public Accounting ◽  
Accounting Firms ◽  
Professional Skepticism ◽  
Accounting Firm ◽  
Public Accounting Firms ◽  
Positive Effect

The emergence of several cases that befell well-known Public Accounting Firms in Indonesia makes researchers want to test so that the purpose of this study is to determine the effect of auditor competence, auditor independence, and professional skepticism on audit quality. This study uses a survey method with a questionnaire. The sample in this study is an auditor who works at a Public Accounting Firm in South Jakarta. The sampling technique used was random sampling method. The sample of this research was conducted in 10 Public Accounting Firms with 77 auditors as respondents. The results of this study indicate that auditor competence, auditor independence, and professional skepticism have a positive effect on audit quality. This result implies that it is important for an auditor to have adequate competence, independent attitude and professional skepticism while carrying out audit engagements.How to Cite:Renaldi., & Mawardi, R. (2021). Kompetensi Auditor, Independensi, Skeptisme Profesional dan Kualitas Audit. Akuntabilitas: Jurnal Ilmu Akuntansi, 14(2), 153-168.

scholarly journals The Influence of Reputation of Public Accounting Firms on the Integrity of Financial Statements with Corporate Governance as the Moderating Variable

2018 ◽  
Vol 9 (3) ◽  
pp. 177-186 ◽  
Author(s):  
Nera Marinda Machdar ◽  
Dade Nurdiniah
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Financial Statement ◽  
Public Accounting ◽  
Accounting Firms ◽  
Accounting Firm ◽  
The Public ◽  
Public Accounting Firms

This research aimed to determine the effect of the reputation of the public accounting firm on the integrity of financial statements by including leverage and firm size as the control variables. This research also investigated the effects of corporate governance moderation that was proxied by the independent commissioner, institutional ownership, and audit committee in strengthening or weakening the reputation of the public accounting firms on the integrity of the financial statements. The population was manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2013-2015. The sample utilized the purposive sampling method and resulted in 34 manufacturing firms, so the total observations were 102 firms in all observed years. This research performed statistical data processing with EVIEWS 8. There are two main findings of this research. First, the reputation of public accounting firm affects the integrity of the financial statement. Second, corporate governance that utilizes the independent commissioners and institutional ownership strengthen the effect of the reputation of the public accounting firm on the integrity of the financial statement. However, corporate governance using audit committee weakens the reputation of the public accounting firm on the integrity of financial statements.

scholarly journals Moderating Role of Audit Fees on the Effect of Task Complexity and Independence towards Audit Judgment

2020 ◽  
Vol 23 (2) ◽  
Author(s):  
Nur Eny ◽  
Ratna Mappanyukki
Keyword(s):  
Audit Quality ◽  
Task Complexity ◽  
Audit Fees ◽  
Auditor Independence ◽  
Survey Method ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Judgment ◽  
Public Accounting Firms

This study examines the effect of task complexity and auditor independence on audit judgment with audit fees as a moderating variable. Samples were obtained from auditors working in public accounting firms in West Jakarta and South Jakarta. Data collection was done using a survey method by distributing questionnaires to 100 auditors as respondents. The method of analysis used was Moderated Regression Analysis. The results show that task complexity hurts audit judgment. Auditor independence has a positive effect on audit judgment. Audit fees can strengthen the effect of task complexity on audit judgment. Besides, audit fees moderate the effect of auditor independence on audit judgment. It is recommended that public accounting firms consider the interaction of variables that affect audit judgment, such as task complexity, independence, and audit fees, to improve audit quality.

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

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.

CPAs' Perceptions of the Emerging Multidisciplinary Accounting/Legal Practice

2001 ◽  
Vol 15 (1) ◽  
pp. 35-48 ◽  
Author(s):  
Kimberly E. Frank ◽  
Randall K. Hanson ◽  
D. Jordan Lowe ◽  
James K. Smith
Keyword(s):  
Legal Services ◽  
Certified Public Accountant ◽  
Public Accounting ◽  
Legal Ethics ◽  
Accounting Firms ◽  
Accounting Firm ◽  
The Public ◽  
Multidisciplinary Practice ◽  
Public Accounting Firms ◽  
Public Accountant

This paper reports the results of a survey of 219 American Institute of Certified Public Accountant members about legal services their public accounting firms currently offer and plan to offer in the future, and how they would organize their firm to deliver these services to clients. The survey is motivated by the legal profession's current investigation of whether to allow nonattorneys to share fees and become partners with nonattorneys and by the American Bar Association's call for evidence on the current existence of multidisciplinary practice (MDP). Forty-four states established MDP committees to recommend whether legal ethics rules should be relaxed to allow MDP. Relaxed ethics rules allow public accounting firms to employ attorneys to offer a full array of legal services to their clients. We find that public accounting firms already offer a number of legal services to their clients and are interested in increasing the offering of these services if allowed. The results also indicate that the size of the public accounting firm is likely to influence the types of legal services offered and the arrangements used to deliver the legal services to clients. The findings are important because they highlight the need for the legal and accounting professions to formulate rules regarding MDP.

Decision Making in a Public Accounting Firm: An Instructional Case in Risk Evaluation, Client Continuance, and Auditor Independence within the Context of the Sarbanes-Oxley Act of 2002

2006 ◽  
Vol 21 (4) ◽  
pp. 431-447 ◽  
Author(s):  
Ambrose Jones ◽  
Carolyn Strand Norman
Keyword(s):  
Decision Making ◽  
Risk Evaluation ◽  
Auditor Independence ◽  
Public Accounting ◽  
Audit Risk ◽  
Accounting Firms ◽  
The Public ◽  
Sarbanes Oxley ◽  
Public Accounting Firms ◽  
A Current

The purpose of this case, loosely based on an actual auditor-client situation, is to study decision making by auditors in public accounting firms regarding risk management (business, engagement, and audit risk), client continuance, and auditor independence. Audit partners often face difficult decisions for which they must balance the business objectives of the firm with their professional objective of satisfying the public interest. While most studies and cases focus on client-acceptance decisions (e.g., Johnstone 2000; Gendron 2002; Knapp and Knapp 2004), an equally important decision for public accounting firms in the Sarbanes-Oxley era is whether to keep a current client. This case encourages students to consider the decision with respect to client continuance, auditor independence, and risk evaluation.

MANDATORI ROTASI AUDITOR DAN KUALITAS AUDIT DI INDONESIA

2019 ◽  
Vol 5 (2) ◽  
pp. 54-64
Author(s):  
Wahyu Pramesti ◽  
Sayekti Endah Retno Meilani
Keyword(s):  
Audit Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Annual Reports ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Using Data ◽  
The Impact

The aims of this study is to determine the impact of audit rotation to audit quality in Indonesia. There are two types of audit rotation, first is rotation of public accounting firms and second is rotation of audit partners. This is quantitave research using 876 samples from members of company listing in Indonesia Stock Exchange from 2013 until 2015. Data colletion from annual reports these companies. These data are processes dan raise the regression equation that satisfy the classic assumtion. Using data from all companies listing in Indonesia Stock Exchange for period 2013 – 2015, we obtained te evidance that audit quality in Indonesia be affected by rotation of public accounting firms and rotation of audit partners. The result show that rotation of audit partners has positive impact to audit quality. While negative impact given by rotation of public accounting firm to audit rotation. It means that the higest frequent of rotating audit partners will increase the audit quality. To the contrary, while higest frequent rotation of public accounting firms will decrease the audit quality.

EFFECT EXPERIENCE, PROFESSIONAL AUDITOR INDEPENDENCE AND VIGILANCE AGAINST FRAUD DETECTION (Empirical Study On Regional Public Accounting Firm in Central Jakarta)

2020 ◽  
Vol 8 (9) ◽  
pp. 115-129
Author(s):  
Afly Yessie
Keyword(s):  
Empirical Study ◽  
Fraud Detection ◽  
Auditor Independence ◽  
Certified Public Accountants ◽  
Public Accounting ◽  
Accounting Firm ◽  
The Public ◽  
Public Accountants ◽  
Public Accountant

Abstract This study aims to examine the effect of the auditor's experience, independence and professional vigilance on fraud detection. This research was conducted on auditors working in the Public Accountant Firm (KAP) of the Central Jakarta area registered with the Indonesian Institute of Certified Public Accountants (Certified) in 2019 using questionnaires. The results indicated resources that the auditor's experience and professional vigilance had a significant effect on fraud detection. While independence does not Significantly influence of fraud detection. Keywords: Experience, independence, auditor's professional vigilance, fraud detection

scholarly journals DETERMINAN KUALITAS AUDIT DI KANTOR AKUNTAN PUBLIK JAKARTA TIMUR

2021 ◽  
Vol 5 (1) ◽  
pp. 76-87
Author(s):  
Alya Lena ◽  
M. Nurrasyidini ◽  
Daram Heriansyah
Keyword(s):  
Audit Quality ◽  
Linear Regression Analysis ◽  
Sample Selection ◽  
Analysis Data ◽  
Multiple Linear Regression Analysis ◽  
Auditor Independence ◽  
Coefficient Of Determination ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms

 The purpose of This study is to study the effect of accounting knowledge, auditor experience, auditor independence, and auditor integrity on audit quality in East Jakarta public accounting firms. The method used in this research is quantitative method, where the variables studied are accounting knowledge, auditor experience, auditor independence and auditor integrity as independent variables and Audit Quality as the dependent variable. The population used in this study were all public accounting firms registered in the East Jakarta area. The sample selection technique used purposive sampling and the data were collected using a questionnaire and processed using SPSS software. Data processing and analysis techniques used in this study are accounting analysis, descriptive statistical analysis, data quality test, multiple linear regression analysis, classical assumption test, hypothesis testing and coefficient of determination. The results of the study show that Accounting Knowledge, Auditor Experience, Auditor Independence, and Auditor Integrity have an influence on the dependent variable (Audit Quality).

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