Informasi Akuntansi Lingkungan: Apa yang Memotivasi Perusahaan untuk Mengungkapkan?

Over the years, there has been an increase in corporate initiatives in the area of environmental reporting practices. The study is conducted to analyze the factors that influence the disclosure of environmental accounting in companies in Indonesia. The sample in this study are 44 entities listed on the IDX from 2016-2020 which are collected by purposive sampling method. The data analysis technique used is panel data regression which is tested with SPSS and Eviews. The results show that firm size, auditor independence and public ownership do not affect environmental disclosure. Profitability affects environmental disclosure negatively. Leverage, listing period and company reputation positively affect environmental disclosure.

Impact of corporate board and external audit attributes on earnings quality: Experience from Nigeria quoted foods and beverages firms

The recent audit failures has pointed to weaknesses in financial report and give occasion of doubt to users about the reliability of earnings declared by firms. This study examines the effects of corporate board and external audit attributes on earnings quality of listed foods and beverages firms in Nigeria. Secondary data were employed through audited annual reports and accounts of eight (8) selected foods and beverages firms listed on the Nigerian Stock Exchange using judgmental sampling technique. Data collected were analyse using descriptive statistics like table, percentage and inferential statistics such as panel regression analysis. All Analysis were tested at 5% level of significance. The results revealed that audit firm size (β=14485.32, P=0.000) which is external audit attribute and board size (β=-2741.887, P=0.000), audit committee presence (β= -8225.11, P=0.044) and company size (β= 5454.20, P=0.000) were the significant determinants of external audit and corporate board attributes of listed foods and beverages firms in Nigeria. Also, the result of panel regression revealed that audit independence (β= -6.57e-06, P=0.035) and audit firm size (β=0.1141479, P= 0.018) were the external audit attributes that had significant effect on discretionary accruals. The study therefore concluded that corporate board attributes (audit committee) and external audit attributes (auditor independence, audit firm size) had significant effect on earnings quality as measured by earnings management of selected foods and beverages firms in Nigeria. The study recommends that in order to enhance auditor’s independence, uniform audit fee should be formulated, and also, disclosure should be made on other corporate board attributes like board members’ year of experience and gender and for effective monitoring system.

Auditing and earnings management in New Zealand

<p>The research summarised in this thesis focuses on two research issues of particular importance to the New Zealand economy. First, the thesis examines the impact of audit factors on the level of earnings management. Second, the thesis empirically assesses the relationship between the level of earnings management and the audit fees charged by audit firms. In the empirical work summarised in this thesis I use the absolute value of discretionary accruals (DACCs) as a proxy for earnings management. I estimate DACCs for each sample firm by using the modified Jones (1991) model. Moreover, several auditor characteristics have been employed in the thesis as proxies for auditor quality and independence. I use a BIG4 dummy variable (that equals 1 if the auditor is a Big 4 audit firm and 0 otherwise), an AOFFICE dummy variable (that equals 1 if the audit firm’s office is located in Wellington or Auckland and 0 otherwise), an AO dummy variable (that equals 1 if the client firm receives a qualified or conditional audit opinion and 0 otherwise) and a FISCAL dummy variable (that equals 1 if the client firm’s fiscal year-end falls in the period from March to June and 0 otherwise) as proxies for audit quality. I also use a RNAF variable (as measured by the ratio of non-audit fees to total fees paid) and a C_AUDITOR dummy variable (that equals 1 if a client firm changes its audit firm and 0 otherwise) as proxies for auditor independence in relation to the level of DACCs. The empirical results summarised in the thesis show that the level of DACCs is significantly and negatively associated with the BIG4 and AOFFICE variables. This result is consistent with the common perception that higher quality auditors will lead to a higher audit quality and that this in turn will reduce level of DACCs. I also find a positive and statistically significant relationship between the FISCAL variable and the level of DACCs. This result indicates that DACCs are likely to be higher if the audit is conducted during the busy audit season. The empirical results summarised in the thesis also show a positive and significant relationship between the audit opinion (AO) variable and the level of DACCs. This means that a qualified or conditional audit opinion is more likely to occur if the financial statements involve a relatively higher level of DACCs. However, the empirical results summarised in the thesis report an insignificant relationship between the level of DACCs and the C_AUDITOR and RNAF variables. These results mean that auditor independence does not appear to have any impact on the level of DACCs. In part two of this thesis, I examine whether the level of DACCs in the current year is associated with the level of the audit fee in the next ensuing year. Here it is well known that each year the auditor will review both the general and specific factors affecting their audit responsibilities in relation to a particular audit client. Hence, the agreed audit fee for the next ensuing year is likely to reflect information about the level of earnings management in prior years and of how the issues arising out of these earnings management procedures have been resolved between the client firm and the audit firm. In order to test this hypotheses, I employ the audit fee model of Simunic (1980) as refined by Choi et al. (2009), Francis and Simon (1987), Hay et al. (2006b) and Menon and Williams (2001). As expected, the second set of empirical results summarised in the thesis show a positive and statistically significant relationship between the level of DACCs in the current year and the level of the audit fee in the next ensuing year. This means that a high level of DACCs in the current year will impact positively on the level of the audit fee in the next ensuing year.</p>

Auditing and earnings management in New Zealand

<p>The research summarised in this thesis focuses on two research issues of particular importance to the New Zealand economy. First, the thesis examines the impact of audit factors on the level of earnings management. Second, the thesis empirically assesses the relationship between the level of earnings management and the audit fees charged by audit firms. In the empirical work summarised in this thesis I use the absolute value of discretionary accruals (DACCs) as a proxy for earnings management. I estimate DACCs for each sample firm by using the modified Jones (1991) model. Moreover, several auditor characteristics have been employed in the thesis as proxies for auditor quality and independence. I use a BIG4 dummy variable (that equals 1 if the auditor is a Big 4 audit firm and 0 otherwise), an AOFFICE dummy variable (that equals 1 if the audit firm’s office is located in Wellington or Auckland and 0 otherwise), an AO dummy variable (that equals 1 if the client firm receives a qualified or conditional audit opinion and 0 otherwise) and a FISCAL dummy variable (that equals 1 if the client firm’s fiscal year-end falls in the period from March to June and 0 otherwise) as proxies for audit quality. I also use a RNAF variable (as measured by the ratio of non-audit fees to total fees paid) and a C_AUDITOR dummy variable (that equals 1 if a client firm changes its audit firm and 0 otherwise) as proxies for auditor independence in relation to the level of DACCs. The empirical results summarised in the thesis show that the level of DACCs is significantly and negatively associated with the BIG4 and AOFFICE variables. This result is consistent with the common perception that higher quality auditors will lead to a higher audit quality and that this in turn will reduce level of DACCs. I also find a positive and statistically significant relationship between the FISCAL variable and the level of DACCs. This result indicates that DACCs are likely to be higher if the audit is conducted during the busy audit season. The empirical results summarised in the thesis also show a positive and significant relationship between the audit opinion (AO) variable and the level of DACCs. This means that a qualified or conditional audit opinion is more likely to occur if the financial statements involve a relatively higher level of DACCs. However, the empirical results summarised in the thesis report an insignificant relationship between the level of DACCs and the C_AUDITOR and RNAF variables. These results mean that auditor independence does not appear to have any impact on the level of DACCs. In part two of this thesis, I examine whether the level of DACCs in the current year is associated with the level of the audit fee in the next ensuing year. Here it is well known that each year the auditor will review both the general and specific factors affecting their audit responsibilities in relation to a particular audit client. Hence, the agreed audit fee for the next ensuing year is likely to reflect information about the level of earnings management in prior years and of how the issues arising out of these earnings management procedures have been resolved between the client firm and the audit firm. In order to test this hypotheses, I employ the audit fee model of Simunic (1980) as refined by Choi et al. (2009), Francis and Simon (1987), Hay et al. (2006b) and Menon and Williams (2001). As expected, the second set of empirical results summarised in the thesis show a positive and statistically significant relationship between the level of DACCs in the current year and the level of the audit fee in the next ensuing year. This means that a high level of DACCs in the current year will impact positively on the level of the audit fee in the next ensuing year.</p>

Factors Affecting Audit Professional Ethics - Approach from the Perception of Auditors in Vietnam

Auditor independence is one of the most important attributes of audit professional ethics. This article delivers a full insight into the perception of auditors about independence in the auditing activities in Vietnam. The article approaches from the auditor's perception in the actual working environment. The article uses a mixed approach based on the experimental methodology. The article uses the archival research method and group discussions method to analyze and assess the research problems and verify by experimental data. The article takes the group discussions with experts and surveys 300 directors, auditors, auditor assistants who are working in 70 auditing firms. The results show that perception of independence is affected by moral awareness, working environment, and professional Association. Factors affecting auditors’ independence from moral awareness of auditor include perception of utilitarianism, perception of deontology; perception of egoism. Factors affecting auditor’s independence from working environment: business philosophy, management practices. Factors relating to the professional association as orientation, supervision, risk of audit practice. In particular, factors relating to the risk of audit practice do not promote the preservation of auditor independence due to the low litigation risks in the Vietnamese auditing environment while the remaining factors motivate auditors to increase their independence. The article implies that the auditors, the audit firms, and the Association of Certified Public Accountants should possess appropriate orientations and policies to raise the perception of auditor independence. Thereby, auditors will improve their attitude and behavior to ensure independence.

Enhancing Auditor Independence in Developing Countries in Context of Globalization – Evidence in Vietnam

Purpose: Globalization brings many opportunities and challenges for developing countries. So, does globalization create a motivation to improve the auditing profession's ethics? Independence is one of the most important components of auditing professional ethics, which must be maintained throughout the audit process. This article delivers a full insight into identifying factors that enhance the auditor independence promoted in the international integration process. Design/methodology/approach: This article approached from international integration process that affect auditor independence from auditors’ awareness, working environment and professional association. This article used a mixed approach based on the experimental methodology. This article used the archival research method and group discussions method to analyze and assess the research problems and verified by experimental data. The article took the group discussions with experts and survey 280 directors, auditors, auditor assistants who are working in 70 auditing firms. Findings: The results showed that globalization support auditors, audit firms, and professional Association to improve auditor independence. Especially, the factors that enhance the auditor independence driven by international integration: Knowledge, Technology, Competition, Management, Monitoring. Practical implications: The article implied to improve auditor independence in the context that Vietnam is strongly integrating internationally. Originality/value: The article has taken a new approach on auditor independence from globalization in Vietnam.

Disciplining Role of Auditor Tenure and Mandatory Auditor Rotation

This study addresses the international debate over whether the rotation of audit firms should be mandatory. Mandatory rotation rules have been adopted by the European Union, but these rules have not been established in the United States. Proponents of the policy believe that a long-tenure auditor-client relationship leads to the auditor building an excessive economic bond with the client which may then erode auditor independence. Motivated by this claim, I build a theoretical model that compares auditor incentives to issue independent reports under regimes with and without mandatory rotation. The model demonstrates conditions under which mandatory rotation could actually impair auditor independence, contrary to the popular view.

Independensi, Pengalaman Kerja Auditor, dan Kualitas Audit Dengan Skeptisisme Profesional Sebagai Variabel Moderasi

The motivation of this study is to examine and provide evidence regarding the interaction of the independent variable (X1) and auditor's work experience (X2) with the audit quality variable (Y) and the interaction of the professional skepticism variable (Z) as a moderator variable in strengthening the interaction of X1 and X2 with variables Y. The research is focused on active Public Accountants (partner auditors) who are licensed and registered with IAPI. The results of distributing questionnaires to Public Accountants obtained 309 questionnaire sample data. The Slovin technique was used in the data collection technique, while the data analysis used the SEM PLS (Structural Equation Modeling-Partial Least Square) method. This study provides evidence that 1) auditor independence has a positive effect on audit quality, 2) auditor's work experience has a positive effect on audit quality, 3) auditor's professional skepticism has an effect on strengthening the relationship between auditor independence and audit quality, and 4) auditor's professional skepticism has an effect on strengthen the relationship between auditor work experience and audit quality. Keywords: Audit Quality, Independence, Work Experience, and Professional Skepticism

Kompetensi Auditor, Independensi, Skeptisme Profesional dan Kualitas Audit

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.

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

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.