The Impact of Auditor Competence and Auditor Experience on Audit Judgement, Mediated by Task Complexity, within Public Accounting Firms in the City of Medan

Abstract

Purpose: This research aims to investigate the intricate interplay between Auditor Competence and Auditor Experience, emphasizing their significant impact on Audit Judgment. The study also introduces Task Complexity as an intermediary variable, mediating the association between these competencies and judgment outcomes. Theoretical Framework: The research is grounded in a theoretical framework that highlights the relationships among Auditor Competence, Auditor Experience, Task Complexity, and Audit Judgment. This framework provides a conceptual basis for understanding how these variables interact and contribute to the overall audit process. Methods: Employing an associative methodological approach, the study utilizes primary data obtained through meticulously designed questionnaires. The participants consist of 173 auditors actively working in Public Accounting Firms (KAP) located in the urban expanse of Medan City. The sampling technique employed is saturated sampling to ensure a comprehensive representation of the population. Analytical pursuits involve a sequential tripartite process, including outer model analysis, inner model analysis, and hypothesis testing. Findings: The empirical analysis reveals several key insights. Firstly, Auditor Competence significantly influences Audit Judgment outcomes. Secondly, Auditor Competence has a substantive impact on Task Complexity. Thirdly, Auditor Experience significantly resonates with the tenets of Audit Judgment. Fourthly, Auditor Experience demonstrates meaningful correlations with Task Complexity. However, the relationship between Task Complexity and Audit Judgment is not statistically significant. Additionally, the intermediary effect of Task Complexity on the relationship between Auditor Competence and Audit Judgment lacks statistical substantiation. Lastly, the mediating role of Task Complexity in the association between Auditor Experience and Audit Judgment lacks empirical significance. Practical Implications: The study's findings hold practical implications for auditing practices. Firms can enhance Audit Judgment by focusing on improving Auditor Competence and strategically leveraging Auditor Experience. Understanding the nuanced relationship between these factors and Task Complexity can inform training programs and professional development initiatives within the auditing profession. Originality/Value: This research contributes to the field by offering nuanced insights into the relationships between Auditor Competence, Auditor Experience, Task Complexity, and Audit Judgment. The empirical findings provide a unique perspective, revealing both significant and non-significant associations, thereby contributing to a more comprehensive understanding of the factors influencing audit quality. This study's originality lies in its meticulous methodology and its potential to inform practical strategies for optimizing audit processes.