Abstract
This study aims to examine the effect of auditors’ competence and moral reasoning towards audit quality with audit time budget as moderating. This research is important because the users of financial statements give confidence to the auditors in providing information in the form of reports and opinions on the audits carried out. So that the resulting audit quality must meet the provisions of auditing standards. High audit quality will produce reliable financial reports as a basis for decision-making. The quality of this audit will be maintained if the auditor has adequate competence and follows the audit procedures that have been determined. The data collection technique used in this study was a questionnaire. The population used is all internal auditors of the Malang City Inspectorate and Batu City in East Java, as many as 50 auditors. The sampling method used in this study is the saturated sample method. The saturated sample method is a sampling technique when all members of the population are used as samples. Technical analysis in this study uses Moderated Regression Analysis (MRA). This study shows that competence and moral reasoning significantly improve audit quality. The more competent an auditor is, the more quality the audit will produce. In addition, the higher the moral reasoning possessed by an auditor, the better the quality of the audit produced. In this study, the audit time budget cannot moderate the effect of competence towards audit quality. While the audit time budget can moderate the effect of moral reasoning towards audit quality.
Highlights
Based on the Minister of Home Affairs Regulation Number 8 of 2009 it is stated that the inspectorate is tasked with determining the reliability of the information produced by various units/work units as an integral part of local government organizations
Based on the description above, the following hypothesis is proposed: H4: Audit time budget strengthens the effect of moral reasoning towards audit quality
The interaction between moral reasoning and audit time budget can strengthen the effect of moral reasoning on audit quality
Summary
Based on the Minister of Home Affairs Regulation Number 8 of 2009 it is stated that the inspectorate is tasked with determining the reliability of the information produced by various units/work units as an integral part of local government organizations. With the supervision of the inspectorate of local governments, it is hoped that the management of local government budgets can achieve their goals without budget deviations. There are officers tasked with conducting audits of accountability reports or government financial reports, both internally and externally. Government audits are carried out by the Government Internal Supervisory Apparatus (APIP) and the Financial Supervisory Agency (BPK) externally. This state apparatus is tasked with supervising to prevent corruption, collusion and nepotism in government agencies. Quality audit results are a goal that must be achieved by the Government Internal Supervisory Apparatus (APIP)
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