Abstract
This paper is intended to explore the manifestation of attributes in reflecting audit quality as set by International Auditing and Assurance Standard Board (IAASB). This research focuses on the attributes of Input-Process-Output factors for engagement (auditor) and firm (public accounting firm) level. The input factors considered are: values, ethics, and attitude, knowledge, skill and experience. The process factors considered are: audit process, and quality assurance. The output factor considered is the audit report. The data gathered from 250 senior auditors who work in 100 public accounting firms in Indonesia. The data analysis and hypotheses testing were processed using Second Order Confirmatory Factor Analysis - Structural Equation Model (SEM) - SmartPLS 3.0. The results of the study confirmed that input, process, and output factors manifest the audit quality. All attributes of values, ethics and attitude for engagement and firm level, positively manifest the audit quality. All attributes of knowledge, experience and time, for engagement and firm level, positively manifest the audit quality. All attributes of audit process and quality assurance, for engagement and form level, positively manifest the audit quality. All attributes of output (audit report), for engagement and firm level, positively manifest the audit quality.
Highlights
The term of audit quality is frequently used in debates among scholars, even the stakeholders: regulators, standard setters, audit firms, auditors (Hyun & Ki-Chang,2020)
The International Auditing and Assurance Standard Board (IAASB) has undertaken a project to develop a Framework for Audit Quality that describes the input and output factors that contribute to audit quality at the engagement, audit firm and national levels (IAASB, 2014)
This research focused on the attributes of audit quality set by International Auditing and Assurance Standard Board (IAASB, 2014) and only covers Input-Process-Output Factors for Engagement (Auditor) and Firm (Public Accounting Firm) level
Summary
The term of audit quality is frequently used in debates among scholars, even the stakeholders: regulators, standard setters, audit firms, auditors (Hyun & Ki-Chang,2020). Audit quality is a complex subject and there is no definition or analysis of it that has achieved universal recognition (IAASB, 2014). The auditors are responsible for performing quality audits of financial statements. The audit quality is best achieved in an environment where there is support from and appropriate interactions among participants in the financial reporting supply chain. There are so many factors that contribute to increasing the quality audits being consistently performed. The IAASB believes there is value in describing these factors and thereby encouraging audit firms and other stakeholders to challenge themselves to increase audit quality in their particular environments. The auditing standards provide an important foundation in supporting audit quality. The International Standards on Auditing (ISAs) issued by the IAASB describe the
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