Ethical Audit Research Articles

INVESTIGATION OF THE DECISION-MAKING ATTITUDES OF INDEPENDENT AUDITORS AND PUBLIC OVERSIGHT EXPERTS

İşletmelerde, finansal süreçlerin kontrolündeki en önemli aşama bağımsız denetim faaliyetleridir. Bu faaliyetleri yerine getiren denetçiler ve denetimleri inceleyen kamu gözetim kurumu da bu sürecin ayrılmaz birer parçasıdır. Denetçinin bağımsızlığı denetçinin etik tutumu ile yakından ilgilidir. Denetim başarısızlıklarının büyük bir kısmı denetçi etiği ile ilgili problemlerden kaynaklanmaktadır. Denetçiler, denetim aşamasında karar verirken etik ikilemde kalabilmektedirler. Kamu gözetimi uzmanları ise denetçilerin faaliyetlerini incelerken etik ikilemde kalabilirler. Çalışmanın amacı da bağımsız denetçilerin denetimler esnasında ve Kamu Gözetimi, Muhasebe ve Denetim Standartları Kurumunda çalışan uzman ve uzman yardımcılarının inceleme faaliyetleri sırasında etik ikilemde kalmaları durumunda; karar verme tutumlarını ayrı ayrı değerlendirmektir. Bu amaçla her iki meslek grubunun etik ikilemde karar verme tutumlarını belirlemek üzere “Sekiz Etik Ölçeği” aracılığıyla anket uygulanmıştır. Araştırma sonucunda, etik ikilem halinde KGK uzmanları ve bağımsız denetçilerin denetim mesleğinde etik ikilem konusundaki görüşleri ve etik ikilem halinde karar verirken hangi tutumlardan etkilendikleri ayrı ayrı tespit edilmiştir.

Pengaruh kompetensi, independensi, pengalaman kerja, dan skeptisisme profesional terhadap kualitas audit dengan etika auditor sebagai pemoderasi (studi empiris pada kantor perwakilan badan pengawasan keuangan dan pembangunan Provinsi Riau)

This study aims to examine the effect of competence, independence, work experience, and professional skepticism on audit quality with auditor ethics as moderating at the Representative Office of the Financial and Development Supervisory Agency of Riau Province. This research is a quantitative research that uses primary data with a questionnaire instrument. The population in this study were all internal auditors who worked at the Representative Office of the Financial and Development Supervisory Agency of Riau Province. The research sample was selected using the non-probability sampling method , the research sample obtained was as many as 53 respondents.software (Statistical Package for Social Science) version 25. The results showed that the independent variables, namely competence, independence, work experience, and professional skepticism had an effect on the dependent variable, namely audit quality. And the moderating variable, namely auditor ethics, is known to not moderate the effect of competence, independence, work experience, and professional skepticism on audit quality

Antecedents of Audit Quality in the Malang Public Accounting Firms: Moderating Effect of Auditor Professional Ethics

The study aims to provide evidence that competency, independence, and accountability influenced the audit quality with professional auditor ethics as moderating variable. The method used in this study is associative research with a quantitative approach. Data on the study is obtained by disseminating questionnaires directly to the auditors as respondents. The population in this study is the auditors who work in the public accounting firm (PAF). The sample in this study is the auditor who worked at the public accounting firm in Malang, with a total of 10 public accounting firms determined using sampling techniques. The data analysis technique in this study uses SmartPLS software 3.0. The results of these studies indicated that the auditor's competency and accountability significantly impacted the audit quality. Auditor's independence did not affect the quality of the audit. Moreover, the study also proved that professional auditor ethics could not moderate the influence of auditors' competency, independence, and accountability on audit quality. This suggests that professional auditor ethics is not essential in forming good audit quality, and auditors in the Malang public accounting firm need the training to enhance their capability in performing audit assignments.

Determinants of Auditors Ability in Fraud Detection

This study aims to examine the effect of auditor experience, auditor ethics, professional skepticism, and auditor personality type on fraud detection. This research was designed using a quantitative approach. Data analysis using multiple linear regression model with spps software. There are several tests carried out before carrying out data analysis. The analysis prerequisite tests include data validity, reliability, normality, multicollinearity, and heteroscedasticity tests. The population and sample in this study were 156 supreme audit boards spread across various regional entities in east java province consisting of 38 city governments and 1 provincial government. The sampling technique used is by using a non-probability sampling approach. The sample in this study amounted to fifty-seven auditors. The results show that auditor experience has a positive and significant effect on fraud detection, auditor ethics has a positive and significant effect on fraud detection, professional skepticism has a positive and significant effect on fraud detection and auditor personality type has a positive and significant effect on fraud detection. The findings of this study are supported by attribution theory and personality type theory.

Impact of ethics training and audits on the relationship quality of business-to-business partners in sharing economy

Sharing economy is flourishing and increasingly customers are shifting towards “using instead of owning” products and services. The objective of our research is to empirically prove that low organizational trust can trigger strict organizational practices such as ethics training and audits but excessive use of both of these practices can negatively impact the relationship quality in sharing economy. In doing so, it has detrimental effects on co-creation and co-innovation particularly when the goals are related to emotional cognitive, material support and relationship building. This study, therefore, targets to scrutinize the dark side of B2B sharing economy platforms using the ethical theory of organizing. The unique contribution of this study is first, showcasing the relationships between ethical climate, ethical practices and consequences. Second, it highlights that B2B alliances that perceive strictness in ethics audits have a low level of willingness to enhance relationship quality. However, the effect of strictness in ethics training does not lead to the development of a low level of willingness to enhance relationship quality. This is an interesting finding and generates a theoretical debate. The findings of the study will promote the development of an ethical model that addresses the negative aspects of the B2B sharing economy.

PENGARUH KOMPETENSI, INDEPENDENSI, TIME BUDGET PRESSURE TERHADAP KUALITAS AUDIT DENGAN ETIKA AUDITOR SEBAGAI MODERASI

<p align="justify">This study aims to examine the effect of independence competence and time budget pressure on audit quality with auditor ethics as a moderating variable. The population in this study were all auditors who worked at the Public Accounting Firm in Semarang. Sampling was done using convenience sampling method and obtained a sample of 70 respondents. The primary data collection method was conducted through a survey method using a questionnaire. The data obtained were analyzed using using the absolute value difference test to test the effect of the moderating variable through SPSS 25. Based on the analysis and hypothesis testing, it can be concluded from the results of this study that competence has an effect on audit quality, while independence and time budget pressure have no effect on audit quality. Auditor ethics moderates the effect of competence and independence and time budget pressure on audit quality.</p><p><strong>Keyword</strong> : Competence, Independence, Budget, Ethics, Audit</p>

Competence, Accountability on Audit Quality: Auditor Ethics as Moderating Variable

This study examines and determines the effect of competence and accountability on audit quality with auditor ethics as a moderating variable. This research is quantitative research with a descriptive approach and statistical analysis. The population in this study were all auditors at KAP in Makassar City, amounting to 38 people. The sampling technique used was the census sampling technique. Data sources are primary data collected by distributing questionnaires to all respondents. The statistical method used to test the hypothesis is to use multiple correlations with the help of SmartPLS software; after all the data in this study is collected, then data analysis is carried out consisting of descriptive statistical analysis, measurement model tests, or outer models consisting of (convergent validity), discriminant validity, composite reliability) and structural model tests or inner models were evaluated using R-square for the dependent construct and direct and indirect hypothesis testing. The results showed that competence and accountability had a positive and significant effect on audit quality, auditor ethics were able to moderate competence on audit quality, and auditor ethics were able to moderate accountability on audit quality.

Ethical Moderation on Framing Relationships, Audit Tenure and Compliance Pressure on Audit Judgment

This study examines and analyzes the impact of framing, audit tenure, and obedience pressure on audit judgment at KAP in South Jakarta, with auditor ethics as a moderating variable. This study's population consists of independent auditors employed by public accounting firms registered with IAPI who reside or work in one of five KAPs in South Jakarta. The sampling method utilized purposive sampling with the following criteria: 1) Senior auditors and 2) Auditors who have worked for more than five years; thus, the total sample size is 80 auditors. This study utilizes primary data collected by distributing questionnaires to all respondents containing multiple statements with four answer options, each of which will be assigned a weighted score (Strongly Agree = 4, Agree = 3, Disagree = 2, Strongly Disagree = 1). The collected data will undergo multiple testing phases before being analyzed. The analysis method employs the Structural Equation Model (SEM) and the Smart PLS application to analyze technical data. Our findings indicate that Framing and audit tenure has a positive and statistically significant effect on audit judgment. In contrast, obedience pressure negatively and statistically significantly affects audit judgment. These findings suggest that the greater the auditor's pressure, the less precise or reduced their audit judgment. An auditor subjected to intense obedience pressure from superiors and the entity being audited will tend to behave safely and provide a poor and inaccurate judgment. Auditor ethics can moderate the impact of framing and audit tenure on audit judgment but not the impact of obedience pressure. This indicates that auditor ethics, as a moderating variable, diminishes the effect of obedience pressure on audit judgment. When under pressure from the client or his superiors, an auditor is likelier not to perform some of the necessary auditing procedures.

The potential therapeutic role of extracellular vesicles in osteoarthritis.

Osteoarthritis (OA) is a worldwide and disabling disease, which cause severe pain and heavy socioeconomic burden. However, pharmacologic or surgical therapies cannot mitigate OA progression. Mesenchymal stem cells (MSCs) therapy has emerged as potential approach for OA treatment, while the immunogenicity and ethical audit of cell therapy are unavoidable. Compared with stem cell strategy, EVs induce less immunological rejection, and they are more stable for storage and in vivo application. MSC-EVs-based therapy possesses great potential in regulating inflammation and promoting cartilage matrix reconstruction in OA treatment. To enhance the therapeutic effect, delivery efficiency, tissue specificity and safety, EVs can be engineered via different modification strategies. Here, the application of MSC-EVs in OA treatment and the potential underlying mechanism were summarized. Moreover, EV modification strategies including indirect MSC modification and direct EV modification were reviewed.

PENGARUH PENGALAMAN, IDEALISME, DAN KOMITMEN PROFESIONAL TERHADAP SENSITIVITAS ETIKA AUDITOR

The purpose of this study was to find out whether the auditor's experience, auditor idealism and auditor's professional commitment have a positive effect on the sensitivity of auditor ethics in the Inspectorate of Nagekeo Regency and Ende Regency. The population in this study were all employees at the Inspectorate Office of Nagekeo Regency, totaling 52 people and 45 people at the Inspectorate Office of Ende Regency. So that a total of 97 people. The sampling technique used purposive sampling method, namely employees who have functional duties, namely auditors at the Inspectorate of the Nagekeo Regency, totaling 17 people and 17 people at the Inspectorate of Ende Regency. So that the total respondent is 34 people. This type of research uses a quantitative approach. This study uses primary data, namely a questionnaire. Data were analyzed using multiple linear regression analysis which was processed through IMB SPSS Statistics ver 25. The results of this study indicate that: (1). Experience has a positive and significant effect on Ethical Sensitivity, this is evidenced by the test results which show the coefficient value of the auditor's experience variable is 0.639 with > (3.269>1.69726) and a significant level of 0.003 <0.05. (2). Idealism has a positive effect on Ethical Sensitivity, this is evidenced by the test results which show the coefficient value of the auditor's idealism variable of 0.307 with > (2.053 > 1.69726) and a significant level of 0.049 <0.05. (3). Professional commitment has a positive effect on the auditor's ethical sensitivity, this is evidenced by the test results showing the coefficient value of the professional commitment variable is 0.426 with > (2.745 > 169726) and a significant level of 0.010 <0.05. Simultaneously the variables of experience, idealism and professional commitment to the auditor's ethical sensitivity are 38.6% while the remaining 61.4% is influenced by other variables not included in the study.

Effect of Independent Locus of Control and Auditor Ethics on Auditor Professional Skeptics and Its Implications on Audit Quality

Effect of Independent Locus of Control and Auditor Ethics on Auditor Professional Skeptics and Its Implications on Audit Quality

Pengaruh Fee Audit, Kompetensi, Etika Auditor, dan Tekanan Anggaran Waktu terhadap Kualitas Audit pada Kantor Akuntan Publik (KAP) di Depok & Jakarta Tahun 2020

The purpose of this study is to discuss and determine the effect of audit fees, competence, auditor ethics and time budget pressure on audit quality at a public accounting firm in Depok. Therefore, we need an audit to clearly determine whether our company's financial statements are in accordance with the guarantee. truth and fairness. The truth and fairness of the audit is very influential on the financial statements, so the company needs an audit. An audit that is able to improve the quality of information, but on the other hand, is a good audit. The public spotlight in recent years is the low quality of audits due to the involvement of public accountants in it. Therefore, companies must also maximize Audit Quality which can be influenced by Audit Fees, Competence, Auditor Ethics, and Time Budget Pressure. This type of research is quantitative research. Samples were taken using convenience sample method. The sample consisted of 30 respondents with the positions of Auditor, Public Accountant, Manager, and Supervisor from the Trisnowati & Mariati Public Accounting Firm (KAP), Hary Suganda Public Accounting Firm (KAP), SE.AK.CPA.CA.BKP, Public Accounting Firm (KAP) ) Irfan Zulmendra, Budiandru Public Accountant Office (KAP) located in Depok & Jakarta, so that the research data analyzed were 30 respondents. The results of the study can be concluded that: (1) Audit Fee has a significant effect on Audit Quality with a significance value of tcount 0.030 <ttable 0.05; (2) Competence has a significant effect on Audit Quality with a significance value of tcount 0.000 <ttable 0.05; (3) Auditor Ethics has no significant effect on Audit Quality with a value of tcount 0.393> ttable 0.05; Time Budget Pressure has a significant effect on Audit Quality with tcount 0.000 <ttable 0.05; Audit Fee, Competence, Auditor Ethics, and Time Budget Pressure have a significant effect on Audit Quality with a value of Fcount 7.645> Ftable 2.74.
 Keywords: Audit Fee, Competence, Auditor Ethics, Time Budget Pressure, and Audit Quality

PENGARUH SKEPTISISME PROFESIONAL, SITUASI AUDIT, ETIKA AUDIT, PENGALAMAN DAN KEAHLIAN AUDIT TERHADAP KETEPATAN PEMBERIAN OPINI AUDITOR

This study aims to examine the effect of professional skepticism, audit situations, audit ethics, audit experience and expertise on the accuracy of giving auditor opinion by accountants to the BPKRI Perwakilan Aceh. This study uses quantitative methods. The sample in this study was all auditors at the BPK RI Perwakilan Aceh. Data collection techniques using questionnaires were obtained by distributing questionnaires to auditors working at the BPK RIPerwakilan Aceh. The analytical method used is multiple linear regression. The results of this study found that professional skepticism, audit situations, audit ethics, audit experience and expertise have an effect on the accuracy of giving auditor opinion by accountants, both simultaneous and partially.

Determinants of Audit Quality with Auditor Ethics as Moderation in Public Accounting Firm Medan City

This research aims to analyze the influence of competence, work experience, and accountability on the quality of audits and the ethical interaction of auditors on audit quality. Data collection is done by survey method with questionnaires. The population of this study is the Auditor in Public Accounting Firm Medan City. Primary data is obtained through the spreading of questionnaires. Hypothesis testing in this study used Moderate Regression Analysis. The results showed that work experience affects the quality of audits. At the same time, the variables of competence and accountability have no significant effect on the audit quality. Auditor ethics can also not moderate the relationship of competence, work experience, and accountability to the quality of audits. Keywords: Competence, Work Experience, Accountability, Auditor Ethics, Audit Quality

Conceptual fundamentals of audit in the management of foreign economic activity

The article substantiates that the most reliable and effective mechanism for timely detection of various violations and manipulations in the accounting system of business entities that carry out foreign trade operations is a well-established system of audit of foreign economic activity. The work is devoted to a comprehensive study of the factors influencing the audit of foreign economic activity and highlighting its principles, rules and restrictions for the development of a comprehensive program of audit of foreign economic transactions and recommendations for improving its individual areas. Based on the results of the study of the peculiarities of foreign economic activity, the article groups the factors that affect the audit of foreign trade transactions. The most important ones are: participation in foreign trade operations of non-residents; duration of foreign trade operations; foreign currency settlements; cost centers; the global COVID-19 pandemic; features of "customs audit"; the need to form a CbC report; tax risk assessment. It is proved that the basis of the methodology and organization of the audit of foreign economic activity is its defining principles. Having studied the main provisions of regulations and the basic principles of auditing, highlighted in the scientific literature, they were adapted to the peculiarities of the audit of foreign economic activity. The principles of foreign economic activity audit are grouped into 8 groups: general, ethical, regulatory, organizational, methodological, professional, economic and technical. The general principles of foreign economic activity audit are decisive for audits of any areas of accounting and financial reporting. Adherence to ethical auditing principles is a determining factor in maintaining the reputation of any audit firm. At each stage of the audit, the auditor must adhere to regulatory principles, namely: the application of standards, self-regulation of the profession, compliance with the law, the contractual basis of the relationship. It is proved that at the planning stage the organizational principles of FEA audit are of special importance. Adherence to the methodological principles of the FEA audit allows the auditor to adapt the tools of the sample survey to the specifics of foreign trade operations. Adherence to professional principles will allow you to achieve the highest standards of professionalism and the best results of the audit. Economic principles determine the financial, material and other constraints in the relationship between the subject of foreign economic activity and the audit firm. In terms of information science, the audit requires appropriate information support and compliance with technical principles. The researched conceptual principles of FEA audit should be constantly taken into account during the development of the plan, comprehensive program, tests of audit of foreign economic operations and recommendations for improving its individual areas.

Why automatic AI ethics evaluations are coming, and how they will work

Ethics evaluations of companies that function with AI at their core are increasingly required by regulation and law in Europe and the US. Investors in artificial intelligence (AI)-intensive companies also seek ethics evaluations as part of the nonfinancial information they gather about corporate performance, especially as it relates to privacy and algorithmic fairness. The result is an increasing demand for the evaluations. The costs and time necessary to perform an AI ethics audit, however, are high, even prohibitive. To solve the problem, natural language processing (NLP) and machine learning (ML) can be employed to automate the process. The proposal is that much of the work of AI evaluating can be accomplished more efficiently by machines than by humans. To show how automated ethics reporting may work, this paper describes a project currently underway at Pace University in New York and the University of Trento in Italy. The project endeavours to apply AI to the task of producing AI ethics evaluations.

AI ethics and its pitfalls: not living up to its own standards?

AI ethics is deemed to be an essential ingredient in the quest for trustworthy AI. Hence, demands for implementing AI ethics and ethicists into AI organizations, especially corporations, are ubiquitous. However, the assumption that AI ethicists have particular epistemological advantages compared to non-ethicists as well as the idea that AI ethics automatically decreases the likelihood of unethical outcomes are both flawed. Therefore, this comment lists risks that either originate from AI ethicists themselves or from the consequences their embedding in AI organizations has. The compilation of risks comprises psychological considerations concerning the cognitive biases of AI ethicists themselves as well as biased reactions to their work, subject-specific and knowledge constraints AI ethicists often succumb to, negative side effects of ethics audits for AI applications, and many more. Ultimately, the aim of this comment is not to diminish or deny the importance of the discipline of AI ethics, but rather to increase its capacities for self-reflection and, ultimately, effectiveness.

Value for Money Audit and Good Public Governance: Stakeholders’ Perception in Nigeria

Over the past decades, public sector performance has been at the forefront of the public management debate. Along with the advent of economic and budgetary crises, and new performance management reforms, the public sector has been under constant pressure around the world to deliver good governance and restore voters' faith in government institutions through the lenses of the value for money audit 6Es (Economy, Efficiency, Effectiveness, Environment, Equity and Ethics). It is against this backdrop, this study primarily assessed stakeholders' perceptions of the impact of value for money audits on good public governance in Nigeria. Different stakeholders who benefit from government actions in Nigeria make up the study's population while purposive sampling was used to choose 150 respondents and for analysis, the study employed ordinal logistic regression. The findings demonstrated a positive association between good governance and independent variables (economy, efficiency, effectiveness, equity and ethics audit), with marginal impact coefficients of .606, .059, 1.048, 0.30 and .053, and p-values of .000, .045, 0.21, .001 and 0.033 respectively. It is concluded that routine value for money audit is found to strengthen good governance in the Nigeria public sector. The study recommended that the government should continue to reduce costs through periodic economic audits and efficient audit, as this will improve the quality of governance in the public sector. More so environment, equity and ethics should be giving emphases.

PENGARUH INDEPENDENSI DAN ETIKA AUDITOR TERHADAP KUALITAS AUDIT

This study aims to determine the effect of auditor independence and ethics on audit quality. An empirical study at the Sungai Senuh City inspectorate office partially and simultaneously. Respondents of this study were 33 people who were auditors in the city inspectorate of Sungai Penuh. The instrument in this study has passed the Validity and Reliability test stages, by performing multiple regression tests, coefficients of determination, F statistic test (simultaneous) t statistical test (partial). The result of this study is that independence has no relationship to audit quality. This is evidenced by tcount < ttable (1.180 < 1.701) and significant <0.05 (0.248 <0.05) meaning that there is no influence between independence on audit quality. Auditor ethics has a relationship with audit quality. This is evidenced by tcount > ttable (3.090 > 1.701) and significant <0.05 (0.04 <0.05) meaning that there is an influence between auditor ethics on audit quality. Simultaneously, the independence and ethics of auditors on audit quality is evidenced by Fcount > Ftable or (17.7655 > 3.34), and with a significant value = 0.000 <0.05 then H0 is rejected and Ha is accepted, meaning that there is an influence between independence and auditor ethics on audit quality at the full river city inspectorate office. The magnitude of the influence of auditor independence and ethics on audit quality simultaneously is 55, 8%

PROFESSIONAL ETHICS OF ACCOUNTANT, AUDITOR AND TAXPAYER AS A FACTOR OF FORMING PUBLIC OPINION

The article describes the features of professional ethics of accountants, auditors and tax officers as an importantcondition for achieving the better productivity. The essence of the concept of professional ethics is stated. Professionalethics is a code of rules that determine the behavior of a specialist in the performance of professional duties andguarantee compliance with moral norms within the current legislation. The basic principles of ethics of professionalaccountants are clarified. The algorithm of identification and assessment of threats to the observance of basic principlesand application of precautionary measures is determined. It is established that the observance of professional ethics byan accountant, auditor and tax officer is one of the most important factors of clients' trust in the results of their work.