scholarly journals Merger Auditor dan Kualitas Audit: Bukti Empiris Dari Bursa Efek Indonesia

2016 ◽  
Vol 17 (2) ◽  
pp. 107
Author(s):  
Sansaloni Butar-Butar
Keyword(s):  
Audit Quality ◽  
Empirical Studies ◽  
The United States ◽  
Legal Issues ◽  
Accounting Firms ◽  
Accounting Firm ◽  
Audit Failure ◽  
Audit Technology ◽  
Huge Investment

<em>Merge rof Pricewaterhouse and Coopers &amp; Lybrands that occurred in 1998 creates PricewaterhouseCoopers as the biggest accounting firm in history. Conceptually and supported by previous empirical result firm size is expected to be positively correlated with audit quality. Large accounting firms have financial ability to improve its auditors skill and can act more independently because major part of their income do not come from one or two clients. They spend huge investment in audit technology as well. However, this positive relationship only applies to environments where punishment is strictly imposed on audit failure. Unlike their counterparts in the United States and Europe, auditors working in Indonesia rarely face legal issues related to the audit assignment. In addition, empirical studies in Indonesia have always classified local auditors as Big N auditors if they affiliate with one of Big N auditors assuming same quality with that of Big N auditors. This assumption does not necessarily hold. Therefore, in the context of Indonesia environtments, this study predicts PricewaterhouseCoopers merger does not affect the quality of the audit. Using abnormal accruals as a proxy for audit quality, the results show that after the merger audit quality has declined significantly.</em>

scholarly journals The Influence of Competency, Independency, and Professionalism on Audit Quality

2019 ◽  
Vol 2 (2) ◽  
pp. 157-169
Author(s):  
Dewi Kartika ◽  
Bambang Agus Pramuka
Keyword(s):  
Audit Quality ◽  
Hypotheses Testing ◽  
Validity And Reliability ◽  
Accounting Firms ◽  
Accounting Firm ◽  
Future Studies ◽  
Internal Auditors ◽  
Central Java ◽  
Testing Techniques

The purpose of this research is to examine the influence of competency, independency, and professionalism on audit quality. Competency, independency, and professionalism are three characteristics of a competent auditor. The population of this research is the auditor of accounting firms in Central Java. The samples of this research are employees of auditors working at accounting firm (KAP) Budiman, Wawan, Pamudji Tegal, KAP Wartono & Fellow Surakarta, KAP Sophian Wongsaro Semarang, KAP Heliantono & Semarang Branch.  Forty-five questionnaires are employed in this study. Before the hypotheses testing, validity and reliability tests are run to determine the validity and reliability of the data. Hypothesis testing techniques use regression analysis. These research results show that competency, independency, professionalism influence the quality of the audit. However, these results have to be cautiously interpreted since only a few auditors’ questionnaires were worth analyzing. Future studies may increase the number of KAPs from other districts in Indonesia or using not only auditors from accounting firms but also government auditors or internal auditors.

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

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.

Political sophistication

2012 ◽  
Author(s):  
Παύλος Βασιλόπουλος
Keyword(s):  
United States ◽  
American Literature ◽  
Empirical Studies ◽  
Political Knowledge ◽  
The United States ◽  
Political Information ◽  
Cognitive Capacity ◽  
Basic Knowledge ◽  
Political Sophistication

This dissertation is concerned with the concept of political sophistication, referring to the extent and organization of a person’s stored political cognition (Luskin 1987).Available empirical evidence on the levels of political sophistication in mass publics comes almost exclusively from the United States and point to two broad conclusions: First, systematic empirical research has demonstrated that political information in the mass public is particularly low (Converse 1964, Delli Carpini and Keeter 1996). Citizens lack basic knowledge over political affairs. Time and again empirical studies have systematically showed that citizens in the United States and elsewhere fall short of passing even the most rudimentary political knowledge tests. This finding that was first illustrated by the Michigan school in the early 1960s (Campbell et al. 1960) resulted in a wide pessimism over the meaning of public opinion and even of representative democracy (Inglehart 1985).The second broad conclusion is that the politically sophisticated and unsophisticated differ: Political sophisticates have the cognitive capacity to translate their deeper held political values and predispositions into consistent political attitudes (Zaller 1992). They are able to use their political knowledge in order to make informed vote choices in the sense that they accurately adjust their political positions to the parties’ platforms (Delli Carpini and Keeter 1996, Lau and Redlawsk 1997, 2006). What is more, they are more likely to participate in elections and other political activities and are less susceptible to political propaganda (Delli Carpini and Keeter 1996).However the idea that political sophistication matters for the quality of the public’s political decision-making has met strong theoretical and methodological criticism by the ‘low information rationality’ perspective (Popkin 1991, Lupia 1994,Graber 2001). This group of theories argues that politically inattentive citizens can form their political judgment on the basis of heuristics that allow them to make reasonable choices reflecting their predispositions and interests even though they lack political knowledge.The principal aims of this thesis are: a)to compare different measurement perspectives on political sophistication and assess their methodological potential especially in regard with comparative research on political knowledgeb)to explore the extent to which the pattern of ignorance that has been repeatedly highlighted in the American literature is an internal characteristic of political behavior stemming from the low expected utility of acquiring political information or it is subject to particular cultural and systemic characteristics. To this direction I use Greece as a case study by undertaking an analytical survey of political sophistication, one of the very few that have been conducted across the Atlantic.c)The third aim is to investigate the determinants of political sophistication and especially the potential of the mass media in political learning and in the context of the Greek political and media system.d)d) Finally this thesis addresses the unresolved question concerning the differences in quality of political decisions between the political sophisticated and unsophisticated layers of the public by evaluating the explanatory potential of two competing theories (political sophistication v. low information rationality) in the multi-party political environment of Greece

FAKTOR-FAKTOR YANG MEMPENGARUHI AUDIT DELAY PADA PERUSAHAAN MANUFAKTUR YANG GO PUBLIK DI BEI

2015 ◽  
Vol 11 (2) ◽  
pp. 117
Author(s):  
Astuti Yuli Setyani
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Test Results ◽  
Public Accounting ◽  
Variable Size ◽  
Accounting Firms ◽  
Accounting Firm ◽  
The Public

"> This study aims to examine empirically the effect of firm size, solvency, profitability, and thequality of public accounting firms (KAP) to the audit delay on manufacturing companieslisted in Indonesia Stock Exchange. This study focuses on companies listed on the IndonesiaStock Exchange. The data used are secondary data, the audited financial statements of 47companies listed in Indonesia Stock Exchange in 2009-2012. To test the hypothesis,performed multiple regression analysis that begins classic assumption test includingnormality, linearity, multicollinearity, heteroscedasticity and autocorrelation. The data usedhas met all the classical assumptions. Partial test results show that the variable size andvariable quality of the public accounting firm (KAP) that affect audit delay, while variablesolvency and profitability variable does not affect the audit delay.Keywords: audit delay, KAP, company’s size, profitability, solvency

Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB Rulemaking Docket Matter No. 31: PCAOB Release No. 2010-005, Application of the “Failure to Supervise” Provision of the Sarbanes-Oxley Act of 2002 and Solicitation of Comment on Rulemaking Concepts

2011 ◽  
Vol 5 (1) ◽  
pp. C11-C15 ◽  
Author(s):  
Joseph Brazel ◽  
James Bierstaker ◽  
Paul Caster ◽  
Brad Reed
Keyword(s):  
Audit Quality ◽  
Exposure Period ◽  
Public Accounting ◽  
Accounting Firms ◽  
Accounting Firm ◽  
The Public ◽  
Sarbanes Oxley ◽  
Public Company ◽  
Auditing Standards ◽  
Supervision Practices

SUMMARY: Recently, the Public Company Accounting Oversight Board (“PCAOB” or “Board”) issued a release to address, in two ways, issues relating to the responsibilities of a registered public accounting firm and its supervisory personnel with respect to supervision. First, the release reminds registered firms and associated persons of, and highlights the scope of, Section 105(c)(6) of the Sarbanes-Oxley Act of 2002 (“the Act”), which authorizes the Board to impose sanctions on registered public accounting firms and their supervisory personnel for failing to supervise reasonably an associated person who has violated certain laws, rules, or standards. Second, the release discusses and seeks comment on conceptual approaches to rulemaking that might complement the application of Section 105(c)(6) and, through increased accountability, lead to improved supervision practices and, consequently, improved audit quality. The PCAOB provided for a 91-day exposure period (from August 5, 2010, to November 3, 2010) for interested parties to examine and provide comments on the conceptual approaches to rulemaking that might complement the application of Section 105(c)(6). The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the PCAOB on the PCAOB Release No. 2010-005, Application of the “Failure to Supervise” Provision of the Sarbanes-Oxley Act of 2002 and Solicitation of Comment on Rulemaking Concepts.

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

Owner ◽  
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.

scholarly journals Determinants of Audit Quality in Indonesia Supreme Audit Institution: A Conceptual Study

2020 ◽  
Vol 12 (2(I)) ◽  
pp. 38-41
Author(s):  
Khoirul Aswar ◽  
Fahmi Givari Akbar ◽  
Noegrahini Lastiningsih
Keyword(s):  
Attribution Theory ◽  
Audit Quality ◽  
Public Institution ◽  
Audit Process ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Audit Failure ◽  
The Public ◽  
Audit Firms

This research is based on the problem of poor audit practices by the Big Four audit firms and the mid-tier audit firms in UK in 2018/2019 cycle, which is indicated as audit failure. This resulted in sanctions and fines that increased significantly from the previous year. Problems related to audit quality are also experienced by government internal auditors in Indonesia. This is due to several factors such as the quality of government internal auditor resources that are still below the lowest service standards as a public institution, lack of available apparatus and low competency, and limited budget. The purposes of this study are to determine the extent of audit quality produced by government internal auditors at the Principal Inspectorate of Indonesia’s Supreme Audit Institution. Based on attribution theory, this study has several objectives, namely to determine the effect of competence, independence, and motivation on audit quality. Therefore, the contribution of this research can be the object of consideration and evaluation for Indonesia’s Supreme Audit Institution auditors regarding the audit process and audit results in the public or government sector, an information for Principal Inspectorate of Indonesia’s Supreme Audit Institution as an effort to maintain and improve the quality of government internal audits, and an information for the public in overseeing the audit quality of the management and responsibility of state finances.

scholarly journals Does Industry Specialist Auditor Provide More Insights in Their audit report? An Empirical Study of Key Audit Matters Section

2021 ◽  
pp. 69-94
Author(s):  
Li-Jen He
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
The United States ◽  
International Standards ◽  
Audit Report ◽  
Disclosure Quality ◽  
Industry Specialization ◽  
Audit Reports ◽  
Industry Specialist

Abstract In 2015, International Auditing and Assurance Standards Board (IAASB) released new International Standards on Auditing 701 and required auditors to disclose key audit matters (KAM) in the audit report. Similar standards were also released in the United States in 2017 and the United Kingdom and Ireland Financial Reporting Council (FRC) in 2014. As KAM are expected to inform on matters of the greatest significance during an audit, before exploring the question regarding whether investors will obtain useful information from additional matter disclosures, the anterior consideration may be in regard to how audit quality affects the disclosure quality of KAM. This study use hand-collected data of the KAM disclosed in the audit reports of Taiwanese listed companies in 2016 to explore the association between auditor industry specialization and audit quality by the disclosure of KAM in new audit reports. The empirical results show that the association between the industrial specialist audit partner and the measurement of KAM quality is significantly positively related. The findings support our hypothesis that specialist auditors’ KAM are more informative than those issued by non-specialist auditors, and provide new evidence supporting prior studies about the superior auditing ability and disclosure quality of auditor industry specialist. Keywords: Key Audit Matters, KAM, International Standards on Auditing 701, International Auditing and Assurance Standards Board.

scholarly journals Dilema Praktik Kantor Akuntan Publik: Pertautan Antara Keberlangsungan Hidup dengan Kualitas Audit

2018 ◽  
Vol 14 (3) ◽  
pp. 177-194
Author(s):  
Anggi Ratna Anggraini
Keyword(s):  
Audit Quality ◽  
Growth Strategy ◽  
Case Study Method ◽  
Public Accounting ◽  
Accounting Firms ◽  
Accounting Firm ◽  
Working Paper ◽  
Interpretive Paradigm ◽  
Audit Fee

This research focuses on the dilemma of small Public Accounting Firms in maintaining their survival, but still maintaining their audit quality. This research is qualitative research with interpretive paradigm and the case study method. This study shows how Public Accounting Firm X faces a dilemma situation when auditing small clients with low fees, while maintaining their audit quality. Public Accounting Firm X in its survival growth strategy uses a "zebra", a "radar" and a business diamond strategy. Public Accounting Firm X itself has a dilemma when faced with a small client who can only pay a low fee for audit services, if using the indicator minimum hourly charge-out rates determined by IAPI, then the audit fee cannot be applied on the client. In the end, the audit procedures carried out must be adequate to maintain audit quality, where Public Accounting Firm X uses Excel based Standard Working Paper during audits and cuts the leveling level. Regulations that accommodate more smaller clients in the area are needed related to audit services.

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.

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