Auditor Accountability Research Articles

The Impact of Ethic and Competence on Audit Quality (Accountability as Moderating Variable)

Purpose: This study used accountability as a moderating variable to examine the impact of ethics and competence on audit quality. Methodology: The data used in this study were derived from a questionnaire survey distributed to respondents from October to December 2023. The respondents for this study were Badan Pemeriksa Keuangan (BPK) head office auditors at State Financial Auditor III. The respondents were selected using purposive sampling criteria. The final sample comprised 69 respondents. This study used the structural equation Modelling (SEM) approach with Smart Partial Least Square (PLS) software to analyze the data. Results: The findings show that ethics and competence positively affect audit quality. Accountability as a moderating variable strengthens the impact of ethics on audit quality. However, accountability does not influence the effect of competence on audit quality. Limitations: This research used a method of distributing questionnaires to several respondents online so that the questions from respondents regarding the questionnaires could not be confirmed directly. In addition, this study uses only two audit attributes as determinants of audit quality. Contribution: This research will provide an understanding of BPK stakeholders regarding the importance of ethics and competence for BPK auditors. Additionally, it is expected that they will not attempt to influence BPK auditors to commit ethical violations. Furthermore, this research is meritorious for BPK to investigate the factors that can encourage the accountability of auditors’ attitudes to improve audit quality.

Legal evolution in the financial realm: Propelling auditor accountability in England

Legal evolution in the financial realm: Propelling auditor accountability in England

Increasing Internal Auditor Accountability in Law of State Financial Management

Background: State financial losses occur due to the lack of role of state financial management supervisory institutions, resulting in overlapping institutions authorized to calculate and determine state financial losses. Based on these problems, this study aims to analyze how internal auditors' role in the public sector can reduce state financial losses. Methods: This research uses a network content analysis method by examining secondary data in government reports, related articles, various legal regulations on state financial management, and case studies based on Supreme Court decisions. Result: The results of this study indicate the involvement of internal auditors who have authority as the main institution determining the contestation of the incidence of state financial losses based on supervisory reports. However, constitutionally, the internal auditor's authority is limited to initial supervision and not authorized to determine state financial losses, which has weak legal force. As a supervisory institution for internal financial management, the state needs to strengthen the authority of internal auditors, including statutory authority, independence, and legal certainty of supervisory reports. Conclusion: Juridically, the only institution that is authorized to state whether there is a loss of state finances is the highest audit institution, with constitutional authority. However, internal auditors can guide the government in improving state finances to ensure that government internal accountability is carried out correctly.

Akuntabilitas Auditor dalam Perspektif Ajaran Karmaphala

The significance of an auditor's accountability is widely recognized in the execution of their professional duties. Numerous auditors encounter significant challenges stemming from the disregard of ethical principles, instances of error, and breaches of professional norms and codes of ethics. The concept of karmaphala, or cause and effect, is recognized in the Hindu religion. This study investigates the concept of auditor accountability via the lens of karmaphala teachings, building upon the aforementioned context. This study employs a qualitative methodology, specifically utilizing a library research strategy. The findings of the study indicate that auditors exhibit heightened diligence in their evaluation of facts, assumptions, and ethical boundaries while applying the karmaphala philosophy. This approach aims to prevent unethical conduct that may have adverse consequences for several stakeholders.

Effect of Audit Regulations and Litigation on Auditors’ Liabilities: A Subjective Approach

In this review, we take a theoretical look at how audit regulation and litigation have changed the liability landscape for auditors. In order to increase transparency and trust in financial reporting, auditing is a crucial public service. The auditing industry has received a lot of attention, some of it unfavourable, as a result of scandals like Enron and WorldCom in the United States or Parmalat in Europe or Cadbury Nigeria PLC. People all throughout the world have spoken out to demand better audit quality. Due to this, adjustments have been taken to increase audit openness and auditor accountability. However, there is still a need for enhancements to be made. This leads to inquiries into the different requests and concerns, and the extent to which they may be fulfilled (auditors' responsibility). Auditors are put in a difficult position since they are expected to please both shareholders and other interested parties. When it comes to the auditor's responsibilities, each stakeholder group has different priorities and requirements. Several ideas have been developed since the field's inception that attempt to pin down audit's precise purposes. Findings of the study has revealed that regulations and litigations have significant positive and adverse effect on auditors’ liability and the expectations of the stakeholders as a result of audit expectation gap. The conclusion here is that, audit regulations and litigation have a significant relationship with auditors’ liability. Irrespective of the outcome of audit litigations as a result of auditors’ negligence to duty, there is an impact on the affected organizations. Therefore, auditors should carefully practice in accordance with national and international auditing standards in order to sustain the good reputation of the organizations.

The Role of Auditor Ethics as Moderating Variable in Relationship Between Auditor Accountability and Quality of the Audit

This study aims to investigate how the independence and accountability of auditors affect audit quality governed by auditor ethics. This study used primary data collected by distributing questionnaires to 124 KAP auditors in the DKI Jakarta area. The sampling technique used is convenience sampling. Multiple regression analysis and moderate regression analysis are used to analyze the data using SPSS 25 software. The results show that audit quality is influenced by independence and accountability. In addition, auditor ethics can also control the impact of independence on audit quality. However, the impact of accountability does not have a significant effect on audit quality. This research provides a better understanding of the factors that affect audit quality, and underscores the importance of auditor independence and ethics in ensuring better audit quality.

Auditor Performance from a Big Four Public Accounting Firm in Jakarta, Indonesia

The purpose of this study is to analyze the effect of accountability and independence moderated by professional ethics on auditor performance at the Big Four public accounting firm in Jakarta, Indonesia. There are also differences in results from previous studies, which motivates the research. The respondents to this study were all auditors at the Big Four public accounting firms in Jakarta, Indonesia. The sample in this study was determined using the probability sampling method, which employs simple random sampling. The data collection technique in this study used an electronic-based questionnaire, which was then delivered using a snowball sampling technique to a sample of 100 respondents. The analytical tool used in this research is multiple linear regression analysis. The results of this study prove that accountability and independence affect professional ethics, and professional ethics affect auditor performance. Based on the results of the study, it appears that the accountability and independence of auditors at the Big Four public accounting firms in Jakarta, Indonesia, have been carried out well. Researchers suggest the Big Four public accounting firms in Jakarta, Indonesia, maintain auditor accountability and independence so that the professional ethics of an auditor remain good and can produce maximum performance. Keywords: Auditor Accountability, Auditor Performance, Auditor Independence, Auditor Professional Ethics , and Big Four Public Accounting Firm.

Profesionalisme Auditor terhadap Kualitas Audit pada Inspektorat Kabupaten Lombok Timur

This study aims to examine the professional auditor by examining the effect of competence, independence and accountability on audit quality. This research was conducted at the Inspectorate of East Lombok Regency. The population in this study were auditor functional officers and P2UPD functional officers who were involved in inspection and supervision activities at the East Lombok Regency Inspectorate. Data were obtained by distributing 51 questionnaires to respondents who were at the Inspectorate of East Lombok Regency, 50 questionnaires were returned and could be used. Data using a partial test (t test). This test aims to find out individually (partial) the independent variable has an effect on the dependent variable. The results showed that competence, independence, and accountability had a positive effect on audit quality at the East Lombok Regency Inspectorate. The results of this study illustrate that the increase in professional competence, independence and accountability of auditors affects the quality of the resulting audit.

Work Experience in Moderating the Independence, Competence, and Motivation of Internal Auditors on the Effectiveness of Internal Control

Economic developments in Indonesia will have an impact on the growth of companies. Therefore, we need a system that can secure the company's assets and encourage business efficiency. Management is obliged to be able to manage the company's activities properly as the implementation of the internal auditor's accountability to the public. This study aims to examine the effect of the role of independence, competence, and motivation on the effectiveness of the internal control system of consumer goods companies in North Sumatra. Testing research data using multiple linear regression analysis and residual tests for moderating variables. The results of this study indicate that the independence, competence, and motivation of internal auditors simultaneously affect the effectiveness of the internal control system. Partially, the independence and competence of internal auditors affect the effectiveness of internal control. This is in line with the research hypothesis, but the motivation of internal auditors does not partially affect the effectiveness of internal controls. Meanwhile, work experience is not proven to moderate (strengthen or weaken) the relationship between the independence, competence, and motivation of internal auditors and the effectiveness of internal controls.

Pengaruh Akuntabilitas Auditor, Independensi Auditor, Dan Profesionalisme Auditor Terhadap Kualitas Audit

This study aims to examine the effect of auditor accountability, auditor independence, and profesionalisme on audit quality. This research is a quantitative research using primary data questionnaire.The participants of this study were auditors who worked at the Yogyakarta Public Accounting firm. The sampling technique in this study used convenience sampling. The analytical method to test the data i this study used multiple regression analysis using SPSS 20 software.The result of this study indicate that auditor accountability, auditor independence and profesionalism have a significant effect on audit quality.

Factors Affecting Internal Audit Reporting on Public Sector in Sri Lanka

The main purpose of this study is to identify significant factors affecting the effectiveness of internal audit reporting in public sector in the Northern Province, Sri Lanka. This study used the primary data collected from the heads of departments, divisions, and internal auditors in public sector in the Northern Province of Sri Lanka through the developed questionnaire. The regression analysis confirmed that the tested factors significantly affected the effectiveness of internal audit reporting, especially accountability and transparency, while internal auditor independence more significantly affected the effectiveness of internal audit reporting. All tested factors were significantly correlated with the effectiveness of internal audit reporting, except materiality. This study was based on the data collected from public sector in the Northern Province of Sri Lanka, therefore the findings of this study could be generalized to the other public sector organizations in the other provinces of Sri Lanka. According to the statistical results, it is suggested that the more the internal auditor independence of as well as internal auditor accountability and transparency, the more the effectiveness of internal audit reporting in public sector in the Northern Province of Sri Lanka. This is the first study evaluating significant factors affecting the effectiveness of internal audit reporting in public sector in Sri Lanka.

PENGARUH AKUNTABILITAS, SKEPTISME PROFESIONAL, KOMPETENSI AUDITOR, DAN E-AUDIT TERHADAP KUALITAS HASIL AUDIT PADA KANTOR INSPEKTORAT DAERAH KOTA MAKASSAR

This study aims to examine and analyze the effect of accountability, professional skepticism, auditor competence and e-audit on the quality of audit results at the Makassar City Regional Inspectorate Office. The hypothesis of this study is that accountability, professional skepticism, auditor competence and e-audit have a positive and significant effect on the quality of audit results at the Makassar City Regional Inspectorate Office. The data used in this study are primary data in the form of respondent's assessment of accountability, professional skepticism, auditor competence, e-audit, and quality of audit results at the Makassar City Regional Inspectorate Office, with a population of 35 auditors and a sample of 31 auditors. Methods of data collection using questionnaires and literature study. The data analysis technique used multiple linear regression analysis, t test, F test and coefficient of determination test. The results showed that: (1) accountability had a positive and significant effect on the quality of audit results at the Makassar City Regional Inspectorate Office; (2) professional skepticism had a positive and significant effect on the quality of audit results at the Makassar City Regional Inspectorate Office; (3) auditor competence has a positive and insignificant effect on the quality of audit results at the Makassar City Regional Inspectorate Office; and (4) e-audit had a positive and significant effect on the quality of audit results at the Makassar City Regional Inspectorate Office. This means that auditor accountability, auditor professional skepticism, and e-audit can support the improvement of the quality of audit results. Keyword: Accountability, Professional Skepticism, Auditor Competence, E-Audit and Quality of Audit Results

Effect Of Independence, Integrity And Accountability Auditors On Audit Quality With Ethics Of Auditor As Moderating Variable (Study At Public Accountants Office In Medan)

The purpose of this research to test and analyze the influence of auditor independence, integrity and accountability on audit quality moderated by ethics. This research approach is quantitative with associative research type. This research was conducted using a survey method by distributing questionnaires to auditors who work at the Public Accounting Firm in Medan. Sampling using purposive sampling, with a total sample of 90 respondents. The data were analyzed using the partial least squares structural equation model (SEM-PLS). The results of this study indicate that auditor independence has a significant and positive effect on audit quality. Auditor integrity has no effect on audit quality, and auditor accountability has a significant and positive effect on audit quality. In addition, this study also found that ethics did not moderate the influence of auditor independence on audit quality, ethics did not moderate the effect of auditor integrity on audit quality and ethics did not moderate the effect of accountability on audit quality. For this reason, auditors are expected to continue to improve their independence, integrity, accountability and ethics in order to improve audit quality, by continuing to carry out technical training that is sufficient to cover technical aspects as well as general education. The novelty of this research is that the researcher uses the majority of auditors to be in the category of young adults, which can be one of the factors causing the integrity variable to not affect audit quality.

The Influence of Government Regulations on Auditing Practices: A Qualitative Research

This qualitative research investigates the influence of government regulations on auditing practices, aiming to provide insights into how regulatory frameworks shape audit methodologies and impact audit quality. The study employs semi-structured interviews, document analysis, and participant observation to gather data from key stakeholders in the auditing profession. Thematic analysis is used to analyze the qualitative data, revealing the complex interplay between regulatory compliance, audit methodologies, and audit quality. The findings indicate that auditors adapt their procedures and practices to meet regulatory requirements while maintaining audit efficiency and effectiveness. Regulatory compliance serves as a cornerstone of audit practice, influencing the allocation of resources and the adoption of risk-based audit methodologies. Moreover, the study explores the impact of regulatory reforms, such as the Sarbanes-Oxley Act of 2002, on audit quality and financial reporting integrity. While some participants perceive regulatory reforms positively, others express concerns about the regulatory burden and unintended consequences of compliance. Document analysis further underscores the mixed perceptions surrounding the effectiveness of regulatory oversight mechanisms in deterring audit failures and enhancing auditor accountability. Overall, the study contributes to a deeper understanding of the intricate relationship between government regulations and auditing practices, with implications for policymakers, regulators, audit practitioners, and other stakeholders striving to enhance the effectiveness of regulatory regimes and promote transparency and integrity in financial reporting.

Audit Quality and Its Influence on Stakeholder Trust: A Qualitative Analysis

This qualitative study aims to explore the intricate relationship between audit quality and stakeholder trust in financial reporting. Through in-depth interviews with auditors, investors, regulators, and corporate executives, insights were gathered regarding perceptions, experiences, and expectations concerning audit quality and its influence on stakeholder trust. Thematic analysis revealed key dimensions of audit quality, including auditor independence, competence, objectivity, adherence to professional standards, and perceptions of audit effectiveness. Stakeholders emphasized the importance of transparent disclosure practices, accountability in corporate governance, credibility of auditors and financial statements, and regulatory oversight in fostering trust in financial reporting. The findings underscored the pivotal role of regulatory bodies, such as the PCAOB and SEC, in promoting audit quality, deterring fraudulent behavior, ensuring auditor accountability, and maintaining market confidence. Overall, the study contributes to a deeper understanding of the mechanisms shaping stakeholders' perceptions of audit quality and trust in financial reporting, with implications for market efficiency, investor protection, and corporate governance.

Pengaruh Pengalaman dan Akuntabilitas Terhadap Kualitas Audit Internal

This study aims to determine the effect of work experience and accountability of internal auditors on the quality of internal audit. Supervision of regional government operations is carried out in stages starting from the Regency / City, Province to the Central level. The independent variables in this study are work experience and accountability. While the dependent variable in this study is the quality of internal audit. it is based on several literature studies and the results of previous studies, the results of this study indicate that work experience and accountability have a very strong role in determining the quality of internal audit, and if someone does the same work repeatedly or continuously, it will be faster and more professional in completing internal audits properly, This is because the auditor has truly understood the techniques or how to properly complete the audit and be careful in completing the audit as expected, therefore the auditor's experience and internal auditor's accountability in carrying out the audit can improve the quality of internal audit.

The Effect of Internal Control Factors on the Accountability of the Auditor at the Inspectirate of Jombang District

Government Regulation Number 60 of 2008 on Government Internal Control System is a manifestation of government commitment in order to improve the performance, transparency and accountability of state finance management and to clarify the role of internal control. This study aims at testing and analyzing the influence of internal control factors to auditors who work in the inspectorate of Jombang District. The population in this study are all auditors working in Jombang inspectorate which amounted to 35 auditors. The research sampling uses census method with unit of analysis as many as 35 auditors at Inspectorate of Jombang District. The type of this research is quantitative research using multivariate statistical analysis by using multiple regression analysis. The tests used are validity, reliability, and hypothesis testing. The result of the research proves that controll environment, management risk assessment, activity control, communication and information, and monitoring affect on auditor accountability in the Inspectorate of Jombang District. Based on the results and discussion of the research, the conclusion that can be taken is the auditor at the Inspectorate of Jombang District should pay attention and keep the compliance of internal control because it will make auditor accountability awake.

Recent Developments in Corporate Governance in India: Role of Shareholder's Activism

Asian Corporate Governance Association on January 19, 2010 presented its white paper on Corporate Governance in India. Shortly before, Ministry of Corporate Affairs held its ‘India Corporate Week 2009’ in the last week of December 2009. The emphasis of the corporate week was on corporate governance and CSR. MCA came up with two voluntary guidelines on corporate governance and corporate social responsibility respectively. The voluntary guideline was given shape by the CII’s Task Force under the chairmanship of Mr. Naresh Chandra and in a way it was an extension of the original Naresh Chandra Report on Corporate Governance. The draft of the extension report emphasizes on the unfortunate history of major corporate misconduct even in the presence of best standards, either it be UK, Germany, France, Italy, or South Korea. The Satyam-Maytas Infra fiasco highlighted the loopholes in the corporate transparency and disclosure norms. This warranted a re-consideration of the boasted of corporate governance norms in India. Though we have a very good set of corporate governance principles inherent in the companies act and the listing agreement, there has been a problem of ‘check and balance’. There was never a question as to non-disclosure in the annual reports about the facts of the company, but the problem is that the shareholders are not vigilant about their duties. There has always been a lack of ‘shareholder activism’. It has not been the case that there was no accountability of auditors under the law, but the problem was the sleeping habit of auditors after a tough initial scrutiny. Related-party transactions were regulated but the changing character of ‘related-party’ has changed over-time. Mr. Raju having his professors on Board of Satyam who owed an obligation to him did not come under the scanner of related-party. The present paper would focus upon the role of ‘Shareholder Activism’, which was a trigger in finding out the Satyam fraud, in development of good corporate governance.

Akuntabilitas dalam Perspektif Ajaran Karma Phala Sebagai Pedoman Untuk Membangun Karakter Auditor

Auditor’s accountability consists of aspects such as motivation, social obligations and dedication to profession. These three aspects must be owned by the auditor to be able to produce a good audit quality.Hindu’s society recognize the legal doctrine of karma phala or causal. Due to the reason, this purpose study is to examine the accountability of auditors in the perspective of karma phala. This study used a qualitative method that focuses on the descriptive and the interpretative of human behaviour. The research data was obtained through participant observation and unstructured interview. Data analyze through three stages: data reduction, data presentation and conclusion. The result shows that karma phala actually been embedded in every aspect of auditor’s accountability, but need more emphasis on awareness of the role of auditors in the public and the profession.

English

This study produces weak and ineffective corporate governance practices in both state owned and privately owned commercial banks in Bangladesh. The paper presents key aspects requiring reforms: the role, constitution and accountability of board, risk management, and transparency. To analyze the corporate governance practices of the private commercial banks (PCBs) and State owned commercial (SCBs), this study focused on four aspects of corporate governance namely; board size, board meeting frequency, audit committee composition, audit committee meeting frequency. Banking performance has been measured through Return on Equity (ROE) and Return on Assets (ROA). To find out the variability in corporate governance, coefficient of variation of the governance indicators of SCBs and PCBs was calculated. The descriptive statistics show that in case of board size greater variability in PCBs but for board meeting frequency and audit committee meeting frequency greater variability exists in SCBs. The trend in write-off of bad debt of PCBs during the period from 2009-2013 is not rising like SCB. On an average, SCBs induce write-off of Tk. 53.16 billion per year whereas PCB decelerates write–off of Tk. 5.52 billion per year. Taken together, our findings suggest that the inferior performance of SCBs in our analysis during the period of 2008–2012 can best be explained corporate governance theory on state ownership of firms and contestable markets perspectives of banking policy mistakes. This paper also brought out some recommendations that need to be improved. Enforcement and monitoring became the main hurdles in establishing the good corporate governance. The accountability of auditors was recommended to ease the corporate governance and financial reporting matter. Key words: Corporate governance, accountability, state owned commercial bank, private commercial bank, regulatory compliance, non performing loan, write-off.