scholarly journals The Effect of Auditor Independence and Ethics on Audit Quality with Audit Fee as a Moderating Variable in Public Accounting Firms in Medan

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Qing Yixin ◽  
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Auditor Independence ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms

This study discusses the effect of auditor independence and ethics on audit quality with audit fees as a moderating variable. This analysis used two independent variables: independence and auditor ethics. Audit quality was the dependent variable, while audit fees were the moderating variable. This research was conducted in 4 Public Accounting Firms (KAP) in the Medan City area, using 70 auditors from 21 Public Accounting Firms (KAP). A quantitative method was employed in this research. The sampling technique used was simple random sampling. In this study, data was collected by surveys or the distribution of questionnaires. Primary data was used as a source. The statistical method employed Partial Least Square Analysis with partial statistical test hypothesis testing (t) in the coefficient of determination (R2 ). SmartPls program was used in this research. The results of this study indicate that independence has a significant effect on audit quality, partially. Meanwhile, auditor ethics has no significant effect on audit quality, and audit fees cannot be a moderating variable on the effect of independence and auditor ethics on audit quality.

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 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).

The relationship between non-audit fees and audit quality: dealing with the endogeneity issue

2015 ◽  
Vol 25 (6) ◽  
pp. 777-795 ◽  
Author(s):  
Pedro Carmona ◽  
Alexandre Momparler ◽  
Carlos Lassala
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Listed Companies ◽  
Auditor Independence ◽  
Public Accounting ◽  
Accounting Firms ◽  
Content Type ◽  
Consulting Services ◽  
Public Accounting Firms ◽  
Abnormal Accruals

Purpose – The purpose of this paper is to explore whether the provision of non-audit services (NAS) by public accounting firms undermines audit quality. The study addresses this question by testing for an association between the provision of consulting services and auditor independence in listed companies. Design/methodology/approach – The authors study if the magnitude of non-audit fees explains variations in earnings management by looking at the joint determination of non-audit fees, audit fees, and abnormal accruals using the SURE-regression estimation method. Findings – Evidence from tested models suggests that audit services quality is uncompromised by the provision of NAS. In other words, high non-audit fees do not necessarily result in poor quality financial reporting. Research limitations/implications – A different research methodology and a different sample (e.g. non-listed companies) may lead to differing results. As the paper analyses only one country, generalizability of the results might be a limitation. There is no need to increase legal restrictions on the provision of consulting services by public accounting firms in order to better safeguard audit quality. Practical implications – Consulting clients may be more confident to hire both audit and NAS with the same firm and can make a case before the general Shareholders’ meeting. By providing both audit and NAS, consulting firms obtain knowledge spillovers and synergies while appealing highly qualified professionals. Originality/value – The use of simultaneous equations (SURE-regression) to establish the auditor-client relation allows us to better model theoretical relations between audit fees, non-audit fees, and abnormal accruals. Likewise, joint modeling takes account of correlations between the error terms of the individual models, yielding more efficient estimates than ordinary least squares. Performing this analysis in a non-Anglo-American country with low litigation risk is also a valuable contribution to extant literature.

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.

Determinants of Audit Quality at Public Accounting Firms

2021 ◽  
Vol 6 (3) ◽  
pp. 134-143
Author(s):  
Audrey Michelle Wenny Yolanda ◽  
Kartini Kartini ◽  
Grace T. Pontoh
Keyword(s):  
Audit Quality ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Primary Data ◽  
Public Accounting ◽  
Accounting Firms ◽  
Education Experience ◽  
Audit Fee ◽  
Public Accounting Firms

Objective – This study aims to examine and prove the effect of education, experience and audit fee on audit quality. Methodology – The data used are primary data in the form of questionnaires distributed to auditors, both senior and junior auditors at Public Accounting Firms located in Sulawesi. The questionnaires distributed to respondents were 46 auditors and 42 questionnaires were returned and able to processed. Findings – This research used a quantitative approach by measuring the objective data through scientific calculations, derived from samples of certain objects to answer a number of questions. The sampling technique used in this study is purposive sampling by using certain criteria and the model used is multiple linear regression analysis. The results of this study indicate that education, experience and audit fee have an effect on audit quality. Novelty – Audit quality is a representation of the auditor's performance as an audit service provider and also the auditee as an audit service user. As a liaison between the interests of financial statement users and the company, auditors are required to improve the quality of their services which in turn will have an impact on quality of the audit results. Auditors with adequate education and experience and appropriate audit fee in performing audit services will have an effect on the quality of the resulting audit. Type of Paper: Empirical JEL Classification: M40, M49. Keywords: Audit, Education; Experience; Fee; Quality

scholarly journals FAKTOR PENENTU KUALITAS AUDIT MELALUI ANALISIS VARIABEL PROFESIONALISME, KOMPETENSI DAN INDEPENDENSI AUDITOR

2021 ◽  
Vol 12 (2) ◽  
pp. 205-217
Author(s):  
I Made Purba Astakoni ◽  
I Wayan Wardita ◽  
Ni Made Satya Utami ◽  
Ni Putu Nursiani
Keyword(s):  
Goodness Of Fit ◽  
Audit Quality ◽  
Auditor Independence ◽  
Partial Least Square ◽  
Least Square ◽  
Coefficient Of Determination ◽  
P Value ◽  
Significant Positive Effect ◽  
Research Subjects ◽  
Positive Effect

This study has several objectives: 1) to determine and analyze the effect of auditor professionalism on audit quality; 2) to determine and analyze the effect of auditor competence on audit quality; 3) to identify and analyze the effect of auditor independence on audit quality. This research was conducted in several public accounting firms  in Denpasar City with the research subjects being all auditors. The sample in this study were all auditors in Denpasar City as many as 112 people. Data collection techniques used were interviews with questionnaires with closed multiple choice. In this study, data analysis used the Partial Least Square (PLS) approach. The results of the study found that the overall strength of the model by looking at the coefficient of determination, Q-Square Predictive Relevance and Goodness of Fit (GoF) were declared very good. The first hypothesis, which states that auditor professionalism has a significant positive effect on audit quality. In testing, it was found that the professionalism of the auditors had a negative effect with a p-value below the specified standard, it means that hypothesis 1 (H1) cannot be accepted. Second hypothesis. which states that auditor competence has a significant positive effect on audit quality. In testing, it was found that the auditor's competence had a positive effect with a p-value above the set standard, it means that hypothesis 2 (H2) can be accepted. The third hypothesis, which states that auditor independence has a significant positive effect on audit quality. In testing, it was found that the auditor's independence had a positive effect with a p-value above the set standard, it means that hypothesis 3 (H3) can be accepted.

scholarly journals Pengaruh Tekanan Waktu, Tindakan Supervisi dan Locus of Control Terhadap Penghentian Prematur Atas Prosedur Audit

2017 ◽  
Vol 1 (2) ◽  
pp. 119
Author(s):  
Mega Rosdiana
Keyword(s):  
Locus Of Control ◽  
Audit Quality ◽  
Time Pressure ◽  
Research Result ◽  
Sampling Technique ◽  
Primary Data ◽  
Public Accounting ◽  
Audit Risk ◽  
Accounting Firms ◽  
Public Accounting Firms

 Premature sign off of audit procedure is one of those behaviors that can reduce audit quality. The present study was intended to examine whether time pressure, supervision, and  locus of control affect  the premature sign off of the audit procedure. The population used in this study is all auditors working at Public Accounting Firms in Surabaya. The data used is the primary data in the form of questionnaires distributed to the respondents.  The sampling technique used is purposive sampling. The sample of research is 50 auditors from 17 Public Accounting Firms in Surabaya. Data analysis techniques used is multiple regressions. The results of this research  showed  that time pressure, supervision and locus of control affected the premature sign off  of  the audit procedures. The implication of this research result for the auditor is the higher the premature discontinuation of the audit procedure performed by the auditor will result in decreased audit quality and increased audit risk.  

scholarly journals Pengaruh Sistem Pengendalian Mutu dan Kompetensi Auditor Dalam Meningkatkan Kualitas Audit

2020 ◽  
Vol 8 (2) ◽  
pp. 217-226
Author(s):  
David HM Hasibuan ◽  
Vanny Silviana Wijaya
Keyword(s):  
Quality Control ◽  
Control System ◽  
Audit Quality ◽  
Quality Control System ◽  
Primary Data ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Public Accountants ◽  
Public Accountant

The increasing number of public accounting firms in Indonesia certainly creates very tight competition among public accounting firms in getting clients. With the existence of the cases related to external auditors, it is very natural that companies become very critical in selecting public accounting firms. To overcome this, public accounting firms and public accountants need to improve their audit quality in order to produce relevant and reliable information so as to make accounting information useful in making decisions. This research aims to analyze the effects of the quality control system and auditor competence in improving audit quality on public accountant auditors in Jakarta. The research method used in this research was descriptive research with a quantitative approach. The population was all public accountant auditors registered in Directory AP & KAP 2019 in the Jakarta area compiled by the Indonesian Institute of Certified Public Accountants (IAPI). The sampling technique  was convenience sampling. The type of data was primary data using a questionnaire as a primary data collection method. The data analysis technique was the statistical analysis method using the SPSS program. The processing method was multiple linear regression analysis. The results show that partially there is a positive and significant effect of the quality control system (significance value of 0,000 < 0,05 and t count value of 5,995 > 1,969) and auditor competence (significance value of 0,000 < 0,05 and t count value of 8,859 > 1,969) in improving audit quality on public accountant auditors in Jakarta. Moreover, the results of this research also indicate that there is a positive and significant effect of the quality control system and auditor competence simultaneously in improving audit quality on public accountant auditors in Jakarta, which is illustrated by a significance value of 0,000 < 0,05 and F count value of 173,519 > 3,029.   Keywords: Quality Control System, Auditor Competence, Audit Quality

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.

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