Abstract
The purpose of this study is to examine and analyze the effect of auditor competence and independence on audit quality as moderated by auditor ethics and professional commitment. The population of this study is the BPKP Auditor Representative of Papua Province with census sampling as the sampling method. Data collection was carried out by direct survey. Hypothesis testing was tested empirically using Moderated Regression Analysis. The results of the study have proven that the competence and independence of auditors has a positive and significant effect on audit quality at BPKP Representatives of Papua Province. It is evidenced by the regression coefficient, which shows that the increase follows competence or independence of auditors increases, as well as the increase of audit quality. The results of this study also show that the interaction or influence of auditor ethics does not moderate the effect of auditor competence on audit quality at BPKP Representatives of Papua Province. Moreover, the interaction of professional commitment does not moderate the effect of auditor independence on audit quality. It is believed that the factor caused the phenomena is that the auditors of BPKP Representative of Papua Province have good values or fundamental principles of ethics as well as professional commitment. The values that have been held so far are relatively relevant or have a lot in common with the auditors’ ethics and professional commitment.
Highlights
Legal issues, especially those related to corruption, collusion and nepotism in all their practices such as abuse of authority, bribery, facilitation payments, illegal fees, payment based on collusion and nepotism and the use of state money for personal gain have become the public’s attention (Tan and Swan, 2020; Nahuway and Tamaela, 2020; Najib, 2013; Tamaela et al, 2020)
This can be proven by the regression coefficient, which shows that if the competence of auditors at BPKP Representatives of Papua Province increases, the increase will be followed by an increase in audit quality
It is in line with the opinion of Christiawan (2002), moderation t value of auditors’ ethics is 0.003 with a significance of 0.812 which is greater than the p-value 0.05 so that Ha is rejected or H0 is accepted, which means that the hypothesis is rejected or auditor ethics does not moderate the effect of auditor competence on audit quality at BPKP Representative of Papua Province
Summary
Especially those related to corruption, collusion and nepotism in all their practices such as abuse of authority, bribery, facilitation payments, illegal fees, payment based on collusion and nepotism and the use of state money for personal gain have become the public’s attention (Tan and Swan, 2020; Nahuway and Tamaela, 2020; Najib, 2013; Tamaela et al, 2020). It is predicted that the Enron scandal will have an impact on various aspects. Christiawan (2002) states that audit quality is determined by two things, namely competence and independence. The competence and independence of the auditor will be related to auditor ethics (Samadara, 2020). It turns out that other researchers convey results that are not in line with the results of the study above, such as those presented by Indriyanto and Nasikin (2014) which find that auditors’ educational background, audit experience, auditor training hours and audit structure did not affect the quality of the audits carried out by the Audit Board of the Republic of Indonesia (or BPK RI) Representatives of Bangka Belitung Province
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