Determinants Of Audit Quality Research Articles

Influence of Competence, Independence, and Professionalism of Government Internal Auditors on Audit Quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP)

Purpose: Many cases related to audit quality in Indonesia have become phenomena that need to be investigated. Some determinants of audit quality are competence, independence, and professionalism. In practice, an auditor has problems carrying out his duties. However, this is a challenge for auditors. Therefore, the purpose of this resource is to determine The Influence of Competence, Independence, and Professionalism of Government Internal Auditors on Audit Quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province. Method: The variables in this research are Competence (X1), Independence (X2), Professionalism (X3), and Audit Quality (Y). The study sample comprised of 40 respondents. The type of research carried out in this study was quantitative using primary data. The data-collection technique used in this study was a questionnaire. The population of this research included all internal auditors at the Representative Office of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province. The sample used in this study was determined using a random sampling technique. Data analysis was conducted using descriptive statistical analysis, normality test, linearity test, multicollinearity test, heteroscedasticity test, multiple regression analysis test, R Square test, t statistical test, and F statistical test. Result: The results of the research partially show that competence and professionalism have positive and significant effects on audit quality, while independence has positive and insignificant effects on audit quality. Simultaneously, it shows that the competence, independence, and professionalism of government internal auditors have a positive and significant effect on audit quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province.

Audit Switching and Audit Tenure as Determinants of Audit Quality

This research aims to obtain empirical evidence of the effect of auditor switching and audit tenure on audit quality. This research was conducted on all companies listed on the Indonesia Stock Exchange for the 2020-2024 period. The sampling method uses purposive sampling. The total sample for this research was 215 companies. Audit quality in this study uses the earnings surprise benchmark proxy. The data analysis technique used is logistic regression analysis. The research results show that auditor switching has no effect on audit quality and audit tenure has a positive effect on audit quality.

Determinants of Audit Quality in Manufacturing Companies in Indonesia

This study was conducted to determine the effect of audit fees, audit tenure, client size, auditor rotation, gender of the audit committee chairman, expertise of the audit committee chairman, education of the audit committee chairman and tenure of the audit committee chairman on the audit quality of manufacturing companies listed on the Indonesia Stock Exchange in 2019-2022. The total sample in this study was 120 companies with sampling techniques using purposive sampling. This study uses logistic regression analysis with Eviews 10. The results of this study indicate that audit fees, audit tenure, client size, auditor rotation, audit committee chair expertise and audit committee chair education have no significant effect on audit quality in manufacturing companies. While the gender of the audit committee chairman has a negative and significant effect on audit quality in manufacturing companies, the tenure of the audit committee chairman has a positive and significant effect on audit quality in manufacturing companies. The results of this study imply the importance of internal company factors, especially the chairman of the audit committee in supervising the company in an effort to improve audit quality.

Determinants of Audit Quality in State-owned Enterprises Listed on the Indonesia Stock Exchange With Audit Fee as Moderating Variable

Determinants of Audit Quality in State-owned Enterprises Listed on the Indonesia Stock Exchange With Audit Fee as Moderating Variable

Determinants of Audit Quality and Connections with Economic Development and Education

Abstract The audit has been mentioned in documents since antiquity, even if the term is not the same, and its connotations have undergone major changes. There are many topics in the economic literature connected with the audit, but one of the most important and debated by specialists is the quality of the audit. And this was viewed over time in continuous evolution. A multitude of possible determinants have been stated theoretically and investigated empirically. Our study mentions several such factors, the ones that were the most stable over time, remaining continuously in the attention of researchers. Since they are very numerous, I have cataloged them by belonging to one of the elements that revolve around the audit: the inputs to the audit mechanism, the processes, outputs and results from the audit mechanism, the market context, premature approvals or methods and practices to reduce voluntary quality. I did not select the determinants randomly, but in such a way that some macroeconomic factors of the quality of the audit can be deduced from them. We thus identified that, at least theoretically, audit quality can be associated with economic development, general education, and financial education. To research these associations, we resorted to international data, performing both univariate and bivariate descriptive analysis based on maps, as well as a multivariate analysis based on hierarchical clustering. Due to the different typology of the available variables, we performed standardization to bring them all to the same statistical distribution, with possible values between 0 and 100. Hierarchical clustering uses Ward linkage for the grouping of units and the Euclidean distance between them. The groupings show a certain hierarchy between the groups in relation to the observed variables, but this is not perfect, as there are also atypical behaviors. We managed to identify some common behavioral patterns of the world’s countries, which we analyzed both economically and geographically.

Audit Quality and Its Impact on Financial Reporting Transparency

This qualitative research study investigates the intricate relationship between audit quality and financial reporting transparency within the corporate governance landscape. Drawing on principles of grounded theory, the research aims to explore the interplay, determinants, and implications of this relationship informed by existing literature. Through systematic document analysis of academic articles, regulatory documents, and scholarly publications, key dimensions and determinants of audit quality and financial reporting transparency are identified and analyzed. The study reveals that audit quality is influenced by factors such as auditor tenure, audit firm size, auditor industry specialization, and audit fees, each playing a nuanced role in shaping the effectiveness and reliability of audits. Similarly, financial reporting transparency is influenced by regulatory frameworks, theoretical perspectives, and technological advancements, highlighting the multifaceted nature of transparency mechanisms and drivers. The findings underscore the critical role of audit quality in enhancing financial reporting transparency, emphasizing the importance of auditor independence, competence, and ethical conduct. Moreover, the study highlights the interconnectedness of audit quality, financial reporting transparency, and corporate governance, with effective governance mechanisms serving as critical determinants of both audit quality and transparency outcomes. The research contributes to the understanding of the complex dynamics shaping audit quality and financial reporting transparency, providing valuable insights for stakeholders in the auditing profession and corporate governance.

Determinants of Audit Quality in Companies That Conduct Initial Public Offerings

This research aims to investigate factors that affect quality control, including audit period, auditor reputation, accounting firm size, and audit fees. The population of this study consisted of 54 companies that participated in the Initial Public Offering (IPO) and were listed on the Indonesia Stock Exchange (IDX) in 2021. The sample was taken using the purposive sampling method to obtain a sample of 42 companies. This study uses quantitative data analysis techniques. SPSS version 20 is used for statistical analysis in data analysis. From the results of this study, audit tenure, Public Accounting Firm size, and audit fees do not affect audit quality; partial research confirms that auditor reputation significantly impacts audit quality. The results of this study can be used as a reference for auditors to improve audit quality for companies conducting IPO.

Moderation of Political Pressure on the Determinants of Audit Quality in the Public Sector: A Study of BPK Auditors for the Maluku and North Sulawesi Regions

Moderation of Political Pressure on the Determinants of Audit Quality in the Public Sector: A Study of BPK Auditors for the Maluku and North Sulawesi Regions

Determinant of Audit Quality: The Guardian and Justice Organizations (Target 16.6 SDGs)

External auditors play a major role in supporting governments and global organizations in implementing their plans for achieving sustainable development goals. The current research determines the factors that affect audit quality of a company. The authors reviewed research articles related to the topic published in the last 30 years (1980– 2020) to identify the factors that affected audit quality. Data were analyzed using the Leximancer software. It was found that the internal control system and audit tenure are the two variables that had a significant effect on audit quality. The internal control system had a relationship level of up to 92%, while the audit tenure had a level of 22%. Additionally, work rotation, workload, reputation, audit committee, and provided services were variables that had a high level of relevance with a level range of 16–19%.
 Keywords: audit quality, Leximancer, determinant of audit quality

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

Determinants of Audit Quality

This research investigates the impact of auditor experience, auditor education, client’s internal controls, and audit procedures performed on audit quality in the UAE. An online Likert scale-based questionnaire was distributed to auditors with financial audit experience in the UAE. Multiple regression analysis was adopted to analyze data since more than one independent variable was investigated. The results demonstrate that auditor experience and auditor education are significantly and positively associated with audit quality, while client’s internal controls and audit procedures are not associated with audit quality.

Determinants Of Audit Quality Among Consumer Goods Companies Listed On The Nigerian Stock Exchange

This study examined the determinants of audit quality among Consumer goods companies listed on the Nigerian stock exchange from 2009 to 2018. This study made use of secondary data obtained from fact books, annual reports, and account of selected consumer goods company under study. The relevant data were subjected to statistical analysis Pearson Correlation while the diagnostics test conducted were Multicollinearity, Autocorrelation, Normality, and Heteroscedasticity Test. The study’s findings showed that board size and company liquidity have a substantial positive influence on financial results, while audit fees, firm size, and audit committee meetings have a negative but non-significant impact. The study concluded that, since board size has a substantial positive effect on audit quality, the governmental body should track firms to ensure that the required board size is met as part of strategies to enhance audit quality among Nigeria’s publicly traded consumer goods companies.

Determinants of Audit Quality at Public Accounting Firms

Objective – This study aims to examine and prove the effect of education, experience and audit fee on audit quality. Methodology – The data used are primary data in the form of questionnaires distributed to auditors, both senior and junior auditors at Public Accounting Firms located in Sulawesi. The questionnaires distributed to respondents were 46 auditors and 42 questionnaires were returned and able to processed. Findings – This research used a quantitative approach by measuring the objective data through scientific calculations, derived from samples of certain objects to answer a number of questions. The sampling technique used in this study is purposive sampling by using certain criteria and the model used is multiple linear regression analysis. The results of this study indicate that education, experience and audit fee have an effect on audit quality. Novelty – Audit quality is a representation of the auditor's performance as an audit service provider and also the auditee as an audit service user. As a liaison between the interests of financial statement users and the company, auditors are required to improve the quality of their services which in turn will have an impact on quality of the audit results. Auditors with adequate education and experience and appropriate audit fee in performing audit services will have an effect on the quality of the resulting audit. Type of Paper: Empirical JEL Classification: M40, M49. Keywords: Audit, Education; Experience; Fee; Quality

The Determinants of Audit Quality: A Study Using the Approach of Earnings Surprise Benchmark

This study aims to find empirical evidence regarding the influence of audit tenure, audit firm rotation, audit firm industry specialization, and time budget pressure on audit quality. This research is a quantitative research using secondary data in the form of financial statements. This study uses a population of manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange in 2015-2017. The sampling was done by using a non-probability method with a purposive sampling technique. The number of samples used in this study is 34 companies. The data analysis method used is a logistic regression analysis method using Statistical Package for Social Sciences (SPSS) version 21. The results of this study indicate that audit tenure and audit firm rotation have no effect on audit quality, PAF industry specialization has a positive effect on audit quality, time budget pressure has a negative effect on audit quality.

Determinants of Audit Quality with Auditor's Professionalism Skepticism as a Mediating Variable in Public Accounting Firm (KAP) Medan City

The purpose of this study is to detect factors that encourage an increase in auditor professionalism skepticism so that they are able to produce quality audits. It is realized that audit quality comes from a good audit process and the auditor puts forward a good attitude of professional skepticism. The results of this study indicate that the experience and competence of auditors can increase the attitude of skepticism of auditor professionalism and audit quality. In addition, the skepticism of the auditor's professionalism is able to mediate the experience of the auditor and the competence of the auditor affects the quality of the audit. For KAP, especially in the city of Medan, it has an obligation to provide an equal portion of audit assignments to all auditors and provide opportunities for auditors to improve their abilities by attending education and training from both formal and non-formal educational institutions. Keywords: Experience, Competence, Skepticism, Audit Quality.

Auditor Independence: Evidence on Non-audit fees, firm financial health and investors’ perceptions of earnings

Motivated by the mixed results of prior research regarding the role of non-audit fees (NAFs) on auditor independence, this study examines the effect of NAFs on earnings response coefficients (ERCs) of healthy and financially distressed firms. We find that NAFs positively affect ERCs for healthy and marginal firms with little incentives to manage earnings while NAFs negatively affect ERCs for financially distressed firms with more incentives to manage earnings. We confirm our findings by showing that distressed firms are more likely to use accrual-based earnings management (AEM) as a channel to affect ERCs. These results hold after we control for various other determinants of audit quality and possible endogeneity. Results provide policy, research, and practical implications by advancing our understanding of the relationship between NAFs and investors’ perceptions of auditor independence.

An Empirical Study on the Determinants of Audit Quality

An Empirical Study on the Determinants of Audit Quality

Determinants of audit quality: Role of time budget pressure

There are many problems related to audit quality, which are often associated with audit failures. Internal government auditors in Indonesia also have issues with audit quality. Therefore, this study aims to present empirical evidence on the relationship between independence, competence, motivation, and audit quality. It will also determine the moderating effect of time budget pressure on the relationship between factors and audit quality. Data of this study were collected through a google form, in which 57 questionnaires were sent to internal auditors of government within the Principal Inspectorate of Indonesia’s Supreme Audit Institution for at least two years. The study adopted a quantitative approach using purposive sampling. Data were analyzed using Structural Equation Modeling (SEM) with PLS version 3.0. The result findings of this study revealed that competence and motivation have a significantly positive effect on the quality of audit while independence does not. Time budget pressure does not significantly moderate such a relationship. In addition, these results have several significant implications for internal auditors as an object of consideration and evaluation relating to audits in the government sector, and information for government internal auditors to improve and maintain the quality of audit.

Determinants of Audit Quality

A public accountant has an obligation in providing good audit quality but with the case of freezing the license of the public accounting firm karana violation of SPAP, the public began to doubt the quality of the audit itself. The purpose of this study is to empirically test the quality of audits influenced by audit fees and audit quality influenced by the audit agreement period. The methods used are descriptive and verifikative. The population is 16 Public Accounting Firms in bandung area, using saturated sampling techniques or census, while the respondents are senior auditors, partners. Statistical testing uses correlation analysis, multiple regression analysis, coefficient of determination and to test the hypothesis then used t test. The results showed that the quality of audit is influenced by the audit fee, between the quality of the audit and the audit fee has a positive relationship which means that when the audit fee is large, the quality becomes better. The quality of audit is also influenced by the period of auditor's alliance and has a negative relationship where when the alliance period becomes long, the audit quality becomes poor, the quality of the audit is also influenced by other factors that are not researched such as independence, competence, professionalism and so on. Based on the results of the study the authors suggest that when accepting work from clients, the approved audit fee must be adjusted to the audit fee structure so that the quality is better and the complexity of the services provided while the contracting period with the client should be the second year of auditing the auditing team of auditors in rotation to keep the audit quality good.

Determinants of Audit Quality in Indonesia Supreme Audit Institution: A Conceptual Study

This research is based on the problem of poor audit practices by the Big Four audit firms and the mid-tier audit firms in UK in 2018/2019 cycle, which is indicated as audit failure. This resulted in sanctions and fines that increased significantly from the previous year. Problems related to audit quality are also experienced by government internal auditors in Indonesia. This is due to several factors such as the quality of government internal auditor resources that are still below the lowest service standards as a public institution, lack of available apparatus and low competency, and limited budget. The purposes of this study are to determine the extent of audit quality produced by government internal auditors at the Principal Inspectorate of Indonesia’s Supreme Audit Institution. Based on attribution theory, this study has several objectives, namely to determine the effect of competence, independence, and motivation on audit quality. Therefore, the contribution of this research can be the object of consideration and evaluation for Indonesia’s Supreme Audit Institution auditors regarding the audit process and audit results in the public or government sector, an information for Principal Inspectorate of Indonesia’s Supreme Audit Institution as an effort to maintain and improve the quality of government internal audits, and an information for the public in overseeing the audit quality of the management and responsibility of state finances.