scholarly journals The Influence of Audit Quality on Auditor Performance with Mediating Organizational Commitment and Organization Culture

2021 ◽  
Vol 56 (2) ◽  
pp. 350-364
Author(s):  
Indrayati ◽  
Grahita Chandrarin ◽  
Fajar Supanto
Keyword(s):  
Corporate Governance ◽  
Transformational Leadership ◽  
Organizational Culture ◽  
Organizational Commitment ◽  
Audit Quality ◽  
Equation Modeling ◽  
Public Accounting ◽  
Accounting Firms ◽  
Good Corporate Governance ◽  
Public Accounting Firms

This study examines the effect of audit quality, good corporate governance, and transformational leadership on auditor performance with organizational commitment and organizational culture as mediation in public accounting firms in Malang and Surabaya, East Java, Indonesia. This research model is quantitative with a population of 660 public accounting firms in Indonesia, with a sample of 150 active auditors in East Java. Data analysis techniques were performed with documentation from questionnaires and Structural Equation Modeling. The results found that audit quality, good corporate governance, and transformational leadership affect organizational commitment, organizational culture, and auditor performance. Organizational commitment and culture affect auditor performance. Audit quality, good corporate governance, and transformational leadership affect auditor performance through organizational commitment and organizational culture.

scholarly journals The Influence of Auditor’s Education Level, Accounting Education, Public Accountant Firm Size on Accounting Profession: Implication to Good Corporate Governance in Indonesia

2019 ◽  
Vol 2 (1) ◽  
pp. 1-7
Author(s):  
Mathius Tandiontong ◽  
Candra Sinuraya ◽  
Sondang Mariani Rajagukguk
Keyword(s):  
Corporate Governance ◽  
Education Level ◽  
Accounting Education ◽  
Accounting Profession ◽  
Public Accounting ◽  
Accounting Firms ◽  
Accounting Firm ◽  
Good Corporate Governance ◽  
Public Accounting Firms ◽  
Public Accountant

Principles of good corporate governance work well in every business entity, if the role of the accounting profession functions properly. For the accounting profession can play a good role is determined by the level of adequate auditor education, the quality of accounting education, magnitude and the number of public accounting firms spread evenly throughout the territory of Indonesia. The purpose of this study is to test empirically the influence of auditor education level, accounting education, the amount of public accounting firm to the accounting profession and its implications for the application of the principles of good corporate governance in Indonesia. The research method used in this research is descriptive verification by using quantitative approach. Data were collected through indirect communication techniques using questionnaires, limited interviews, and documentation studies in an effort to add explanatory elements to the survey results. The unit of analysis is the Public Accounting Firm in the island of Java. Sampling with simple random proportional method to 88 respondents received by researchers from 500 respondents sent. The technique of analysis and data testing is done by Path analysis. The results showed that: (1) There is a correlation between the level of accountant education with accounting education and the magnitude of public accounting firms with the level of keeratanya still at a moderate level. (2) Coefficient of Determination of Education Level Auditor, Accounting Education, and Quantity of Public Accounting Firm simultaneously have positive effect on Accounting Profession. However, partially the Auditor's Education Level and the Magnitude of Public Accounting Firm have an influence on the Accounting Profession is not significant. (3) There is influence of education level of Auditor, Accounting Education, Accountant Public Accountant Level and Accounting Profession partially or simultaneously to the application of Good Corporate Governance principles. Partially, however, the level of Education of Auditor and the magnitude of Public Accounting Firm influences the application of Good Corporate Governance principles but not significant.

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 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 Pengaruh Pengalaman Auditor, Time Budget Pressure dan Ukuran Kantor Akuntan Publik Terhadap Audit Report LAG Pada Auditor Kantor Akuntan Publik Di Kota Surabaya

2020 ◽  
Vol 11 (2) ◽  
pp. 80
Author(s):  
Dewi Sutjahyani
Keyword(s):  
Audit Quality ◽  
Planning Process ◽  
Time Budget ◽  
Audit Report ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Planning ◽  
Public Accounting Firms ◽  
Inspection Tasks ◽  
Time Budget Pressure

The job of the auditor is to provide useful information, therefore when the audited report is delayed it will reduce the use value of the financial statements presented. Therefore, it is important to identify and have a deeper look at several factors related to the occurrence of audit report lag. Thus, it is necessary to study whether these factors significantly influence the audit report lag. This is important because the audit report lag phenomenon can reduce client interest and affect the reputation of auditors and public accounting firms where auditors work. Hypothesis 1 in this study is rejected, this means that the experience of auditors does not significantly affect the Audit Report Tag. work and the number of inspection tasks. The experience variable does not have a significant effect because audit quality is not determined by the length of work and the number of audit tasks. Hypothesis 2, namely that time budget pressure has an effect on audit report lag, is rejected. Time budget pressure is vital in the process of completing an audit report. In this case the time budget pressure does not have a significant effect because the budget pressure is determined when planning to determine the audit task but the implementation of the audit can be different influenced by the existing situation. For example during a pandemic, uncontrollable situations lead to leeway in the completion of audited reports. So that the existing time budget pressure must be adjusted. The hypothesis in this study is accepted, this is because the size of KAP basically determines the level of efficiency and effectiveness of each auditor's task. In medium and large KAPs, there is usually a structured system and maturity from the audit planning process to the audit. This is because large public accounting firms usually try to maintain quality and reputation to keep their clients interested

scholarly journals Showcasing Audit Quality through Voluntary Public Disclosure of Audit Quality Indicators

2021 ◽  
Author(s):  
Owen Brown ◽  
Velina Popova
Keyword(s):  
Quality Indicators ◽  
Audit Quality ◽  
Quality Enhancement ◽  
Individual Investors ◽  
Public Disclosure ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Firm ◽  
Stakeholder Groups ◽  
Public Accounting Firms

Public accounting firms continuously invest significant resources into enhancing audit quality. In this paper, we summarize Brown and Popova’s (2019) key findings related to public disclosure of audit quality indicators (AQIs) and discuss important implications for audit practitioners. Specifically, we discuss the current landscape of AQI disclosure from a regulatory and practitioner standpoint, and we provide recommendations for audit practitioners to consider when developing their own framework for AQI disclosure. Finally, we discuss how important stakeholder groups such as individual investors are influenced by AQI disclosures when making significant decisions concerning the audit firm (e.g., making auditor ratification decisions) and the audit client (e.g., making investment changes). The insights provided in our summary inform audit practitioners on how to showcase their audit quality enhancement efforts through voluntary AQI disclosure.

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 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.

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