Auditor Independence Research Articles

Pengaruh Corporate Governance dan Corporate Social Responsibility Disclosure Terhadap Tax Avoidance pada Perusahaan Tambang di Bursa Efek Indonesia Periode 2019–2021

This study aims to analyze and determine the effect of corporate governance and corporate social responsibility disclosure on tax avoidance in mining companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2021 period. Data collection techniques used are websites and documentation. The type of data is quantitative data with secondary data sources. The population used in this study are mining companies listed on the Indonesia Stock Exchange for 2019–2021 with a total of 47 companies by purposive sampling, so the number of samples is 11 companies x 3 years = 33 financial reports. The data analysis method in this study uses multiple linear regression analysis, the coefficient of determination, and hypothesis testing T-test and F-test. The results of this study indicate that: 1. The proportion of independent commissioners (KIND) partially has a significant positive effect on company tax avoidance (TAX) mines listed on the Indonesia Stock Exchange (IDX). 2. Partial institutional ownership (KI) has no significant effect on the tax avoidance (TAX) of mining companies listed on the Indonesia Stock Exchange (IDX). 3. Managerial ownership (KM) partially has a significant negative effect on the tax avoidance (TAX) of mining companies listed on the Indonesia Stock Exchange (IDX). 4. The audit committee (KA) partially has a significant positive effect on the tax avoidance (TAX) of mining companies listed on the Indonesia Stock Exchange (IDX). 5. Corporate social responsibility disclosure (CSRD) partially has a significant positive effect on the tax avoidance (TAX) of mining companies listed on the Indonesia Stock Exchange (IDX). 6. The proportion of Independent Commissioners (KIND), Institutional Ownership (KI), Managerial Ownership (KM), Audit Committee (KA), and Corporate Social Responsibility Disclosure (CSRD) simultaneously have a significant positive effect on tax avoidance (TAX) of registered mining companies on the Indonesia Stock Exchange (IDX).

Pengaruh Tata Kelola Perusahaan, Pelaporan Keberlanjutan, dan Koneksi Politik terhadap Penghindaran Pajak

The purpose of this study is to examine the effect of corporate governance, sustainability reporting, and political connections on tax avoidance practices. The data used in the study involves data derived from the financial statements of companies in the infrastructure sector listed on the Indonesia Stock Exchange for the period 2020 to 2022. Information is obtained through the page www.idx.co.id and from the website of each company. The method applied in the research is quantitative method, using purposive sampling data collection technique. While the number of samples selected for this study was 30 observations. The research findings show that corporate governance represented by independent commissioners and audit committees, as well as sustainability reporting has a negative effect on tax avoidance.

ANALISIS PENGARUH BEBAN PAJAK TANGGUHAN TERHADAP LABA BERSIH PADA PERUSAHAAN TRANSPORTASI DAN LOGISTIK YANG TERDAFTAR DI BEI PERIODE TAHUN 2022-2023

This research aims to analyze the effect of deferred tax burden on the net profit of transportation and logistics companies listed on the Indonesia Stock Exchange (BEI) in 2022 to 2023. Deferred tax expense is the amount of tax recognized for temporary differences between taxable income and accounting profit. This research used purposive sampling to select 27 companies from a population of 37 transportation and logistics companies listed on the IDX. The data used are annual financial reports audited by independent auditors. Data analysis was carried out using logistic regression using Microsoft Excel 2007 and SPSS 25 software. Research findings show that deferred tax expenses have a significant influence on a company's net profit. This insight is important for investors and business managers to understand how deferred tax expenses impact earnings management.

Determinants of job satisfaction among employees at the Ministry of Religious Affairs Office in Palembang

Purpose: 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. Research methodology: The variables in this study are competence (X1), independence (X2), professionalism (X3), and Audit Quality (Y). The study sample comprised of 40 respondents. The research carried out in this study was quantitative, using primary data. The data collection technique used in this study was a questionnaire. The study population included all internal auditors at the Representative Office of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province. The samples used in this study were selected using random sampling. 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. Results: 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, 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.

Relationship between forensic medicine education, stress factors, and mobbing perception from the perspective of specialists in Turkey's universities

IntroductionThe current situation needs to be presented with scientific data to ensure and improve the quality of specialist training. This study examined the quality of education, instructor competence, stress factors, mobbing, and their interconnections in the domain of forensic medicine specialty education in Turkey. Materials and methodsThis cross-sectional study was conducted through an anonymous, web-based survey targeting forensic medicine specialists who have completed their specialist training in university forensic medicine departments within the last three years. The survey consisted of questions regarding issues included in the core education curriculum, educator characteristics, and perceptions of stress and mobbing. Based on the responses provided, the relationships between these factors were statistically analysed. Results72.7 % of the study population completed the survey. Nearly half of the participants (46.3 %) did not consider the number of instructors adequate. The quality of instructors (scientific competence, educational and teaching skills, interpersonal relations, accessibility, management, and problem-solving abilities) was determined to be partially sufficient (mean = 3.36). Approximately one-third of the respondents indicated that instructors made the greatest contribution to their specialist training, whereas the proportion of those who said otherwise was much higher. Education received for topics included in the core curriculum was partially sufficient level (mean = 3.04). It was observed that there was a significant relationship between the instructor characteristics, sufficiency score of the taught topics, and perception of mobbing (p < 0.01). The sufficiency scores of instructor characteristics had a 1.02-fold impact on sufficiency ratings of the topics covered in residency training. Among the respondents, 76.9 % reported encountering stress factors during their specialty training, with the most frequently exposed stress factor (52.2 %) being disorganisation within the training program. Among the participants, 22.8 % reported experiencing mobbing. ConclusionsEducation and instructor qualifications were correlated; however, stress factors and mobbing adversely affected education. A close association was observed between education, instructors, stressors, and mobbing. Thus independent and objective auditors tasked with verifying whether institutions meet the established educational standards need to be established.

The Impact of the Corporate Governance Mechanisms on Insurance Risk: Perspective from Insurance Industry

Abstract This study examined the correlation between corporate governance mechanisms and insurance risk in Ethiopian insurance companies. The study employed various multivariate regression approaches, including fixed effects, random effects models, and two-step system GMM. The study analyzed 136 observations from 17 insurance firms, with one omitted due to lack of data. The research used two regression models to examine the link between corporate governance mechanisms and insurance risk. Having independent directors on the board was discovered to have a notable and unfavorable influence on operational risk, whereas the size of the board did not impact operational or liquidity risk. The frequency of board meetings did not show a significant relationship with operational risk, but it did have a notable positive correlation with liquidity risk. Audit committees were found to have a negative and significant influence on both operational and liquidity risk. Gender diversity on the board had an insignificant but negative effect on insurance risk, mainly operational risk. Overall, the study emphasized the importance of independent directors and audit committees in managing risk in Ethiopian insurance companies. This research provides valuable insights for academic policymakers, such as the National Bank of Ethiopia, insurance companies, and other organizations.

Is There a Demand for Extensive Financial Reporting on Local Government from the Most Important Stakeholders: Residents?

The study aims to identify residents’ perception of such aspects of public finances as transparency and credibility, in particular, their level of interest and needs regarding increasing the scope of financial reporting at the local level. The study was conducted in 2023 among residents of the 12 largest Polish cities, using the computer-assisted telephone interviews (CATI) technique on a sample of N = 400 residents of each city. A total of 4,800 respondents took part in the survey. The qualitative study was conducted using the focus group interview technique (FGI online). The research results indicate a noticeable lack of demand for information regarding local finances and a lack of trust in the transparency and honesty of public funds management. Bearing in mind that residents rely on economic experts and financial analysts as sources of information with the highest credibility, a large field opens up for experts such as independent auditors.

Conflicts of interest in the hiring of non-audit services provided by audit firms: are the anti-conflict corporate policies adopted in Brazil adequate?

The present study analyzed the policies and procedures adopted to prevent conflicts of interest situations in Brazilian publicly traded companies that hired the same audit firm to perform both the financial statement audit and other types of non-audit services in the fiscal year 2020. Using content analysis technique, the study examined information available in the Management Reports for the year ended December 2020. which are mandatory disclosures to the market, and in the Policies for Hiring Non-Audit Services of their Independent Auditors valid in the year 2020. optionally submitted to the Securities and Exchange Commission. The observed results suggest a low level of detail in the information provided by companies, as most use standardized and concise texts in their respective Management Reports. Through best practices, it is noted that the Policies for Hiring Non-Audit Services of their Independent Auditors in the majority of analyzed companies identify the Audit Committee as responsible for service contracts. Some companies include a list of prohibited services and establish percentage limits for non-audit services to be provided. As a contribution, the study aimed to outline the policies adopted by companies in response to regulatory requirements and highlight some existing evidence in the disclosed information.

Faktor-faktor yang mempengaruhi Kinerja Auditor: Profesionalisme, Kompetensi Auditor dan Independensi Auditor

Good audit performance will enable the accounting firm to achieve its objectives and meet the financial reporting needs of stakeholders. Auditors must be skilled to maintain the trust of clients and other users of the audit financial statements. Auditor training improves the auditor's ability to carry out his work during the audit process.The central questions of this article are: (1) Whether auditor ability, auditor professionalism, and auditor independence have an impact on performance. (2) Further review of previous articles, which are still found to be inconsistent. The hope is that this research will contribute new thoughts to the development of audit theory by reviewing aspects of auditor independence, professionalism, and competence in the context of their performance.The purpose of writing this article is to establish hypotheses of influence between variables in further research.The findings of this literature review article are: 1) Auditor competence affects auditor performance; 2) Professionalism has an effect on auditor performance; 3) Auditor independence has an effect on auditor performance.

Pengaruh Dewan Direksi, Komite Audit, dan Kepemilikan Asing Terhadap Kinerja Keuangan

This study aims to determine the effect of the board of directors, audit committee and foreign ownership on financial performance in consumer cyclicals sector companies listed on the IDX in 2014-2022. The sampling technique used purposive sampling and obtained 37 companies. This study uses quantitative data and the research method uses regression analysis using the STATA application. The results of this study indicate that the board of directors and audit committee have a positive effect on financial performance, but foreign ownership with a level of 21% has a negative effect on financial performance. The results of this study are practically useful for knowing the more in-depth functions of the independent board of directors, independent audit committee, and foreign ownership and utilizing these variables to improve the company's financial performance.

The Role of Intrinsic Motivation in Mediating the Effect of Auditor Independence on Audit Quality in Indonesia

The Role of Intrinsic Motivation in Mediating the Effect of Auditor Independence on Audit Quality in Indonesia

The Effect of Institutional Ownership, Independent Auditor Tenure, Audit Committee Tenure on Earnings Management in Palm Oil Plantation Companies Listed on the Indonesia Stock Exchange

The Effect of Institutional Ownership, Independent Auditor Tenure, Audit Committee Tenure on Earnings Management in Palm Oil Plantation Companies Listed on the Indonesia Stock Exchange

Independence of Government Auditors: Anteceden and Consequences in Improving Audit Quality

Independence of Government Auditors: Anteceden and Consequences in Improving Audit Quality

The Influence of Good Corporate Governance on Firm Value with Financial Performance as a Moderation

This study investigates the direct and moderating effects of various corporate governance factors on firm value. The direct effect analysis reveals that financial performance alone does not significantly influence firm value, whereas the roles of independent commissioners and independent directors are crucial, significantly enhancing firm value through improved governance and oversight capabilities. Conversely, the direct impact of independent audits on firm value is found to be non-significant, suggesting their influence is more indirect, supporting a trustworthy financial environment. The moderating effect analysis underscores the importance of corporate governance in leveraging financial performance to enhance firm value. Independent commissioners, directors, and audits all have significant moderating effects, enhancing the positive relationship between financial performance and firm value. Independent commissioners and directors ensure effective utilization of financial gains and risk mitigation, while independent audits ensure the reliability and transparency of financial reporting, building investor trust and confidence. Combining insights from both analyses, the study concludes that effective corporate governance is paramount in maximizing firm value. Strong governance structures, including the inclusion of independent commissioners, directors, and auditors, not only directly enhance firm value but also amplify the positive effects of financial performance. This study emphasizes the need for stakeholders and policymakers to prioritize strengthening corporate governance frameworks to achieve sustainable value creation.

The Role of Ethics, Competence, Auditor Independence, and Audit Fees on Audit Quality: A Literature Review

The Role of Ethics, Competence, Auditor Independence, and Audit Fees on Audit Quality: A Literature Review

The Role of Professionalism, Auditor’s Experience, and Independence in Improving the Quality of Audit Results: Empirical Study on The Government Internal Monitoring Apparatus ITJEN Kemendikbudristek

The Government Internal Monitoring Apparatus is an important part of government management to realize good governance. This research aims to carry out analysis through the stages of identifying, reviewing, and proving hypotheses, as well as finding variables that influence the quality of audit results. The research method used is a mixed parallel convergent method. This research analyzes data through two analyses: quantitative and qualitative analysis, quantitative data was collected through questionnaires from 201 ITJEN Kemendikbudristek auditors. while qualitative data was obtained through interviews and observation. The analysis technique uses SPSS 26.0, Amos 5, and QSR NVivo 20.2 software. Research results from the quantitative analysis show that the level of professionalism, experience, independence, and quality of audit results at ITJEN Kemendikbudristek is in the sufficient category. The causal relationship between professionalism, experience, independence, and the quality of audit results is not significantly strengthened by the existence of the working time moderating variable. The model with the moderating variable produces a fit model. Likewise, the proposed model without the moderating variable produces a fit model. A model that can not only interpret samples but also interpret the population as a whole. The model without the moderating variable has a much more effective model, namely 15.2%, compared to the model with working time with a model effectiveness level of 15.1%. The research results from the qualitative analysis show that the level of professionalism, experience, independence, and quality of audit results at ITJEN Kemendikbudristek is in the sufficient category. These results are in line with the results of quantitative analysis using arithmetic average calculations. For this reason, increasing the professionalism, experience, and independence of auditors, which is currently considered sufficient, will further improve the quality of audit results when the level of professionalism, experience, and independence increases.

Does client importance affect key audit matters reporting? New Zealand evidence

PurposeThis study aims to examine the relation between a client’s relative economic importance to its auditor and the number of key audit matters (KAMs) reported in the expanded audit report.Design/methodology/approachThe authors measure a client’s economic importance at the audit firm level as well as the audit partner level using the ratio of a client’s total fees to an auditor’s total fees earned from its listed clients and the ratio of a client’s audit fees to an auditor’s total audit fees from its listed clients. The authors estimate a multivariate regression model using a sample of New Zealand-listed company-years from 2017 to 2019.FindingsResults reveal a positive relation between client importance to auditor and the number of KAMs disclosed. Furthermore, the positive association between client importance and the number of KAMs reported is more pronounced for clients audited by the Big 4 auditors and less experienced audit partners. These findings suggest that auditors’ incentive to protect against potential losses from important client engagements outweighs any impairment to auditor independence and leads to a higher number of KAMs reported for the economically more important clients. Overall, the results suggest that auditors report KAMs strategically to mitigate engagement risks.Originality/valueThis study provides the first evidence on how client economic importance relates to the disclosure in the expanded audit report and contributes to the dialogue on auditors’ reporting of KAMs in the Asia-Pacific region.

Meningkatkan Kualitas Laba Melalui Corporate Governance

This study aims to examine the effect of independent commissioners, audit committees, and managerial ownership on earnings quality. This study uses three control variables, namely firm size, profitability, and leverage. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2019-2021. Sampling using purposive sampling technique produces 182 data. The results obtained indicate that managerial ownership has a significant positive effect on earnings quality. Ownership of shares owned by directors is considered capable of providing oversight of performance between agents and management. In contrast, independent commissioners and audit committees have no effect on earnings quality. This is because the supervision carried out by independent commissioners and audit committees is considered less than optimal. For the variable firm size, profitability, and leverage have a significant positive effect on earnings quality.

Pengaruh Independensi Auditor, Kepemilikan Manajerial, Kualitas Audit, dan Leverage terhadap Integritas Laporan Keuangan (Studi Empiris Pada Perusahaan Sektor Properti &amp; Real Estate yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022)

Financial reports are reports produced from various processes of recording financial transactions within the company. This study aims to determine the effect of auditor independence, managerial ownership, audit quality, and leverage on the integrity of financial statements. This research was conducted on property &amp; real estate sector companies listed on the IDX in 2018-2022. The data used is secondary data obtained from financial reports and annual reports of property &amp; real estate sector companies listed on the IDX for 2018-2022. The final sample size was 164 samples during 2018-2022 with a sampling technique using purposive sampling. This study uses quantitative methods and multiple linear regression models with SPSS version 25. The results show that managerial ownership, audit quality, and leverage have a negative and significant effect on the integrity of financial statements. Meanwhile, auditor independence has no influence on the integrity of financial reports.

Do Enterprises That Publish Sustainability Reports Have a Better Developed Environmental Responsibility and Are They More Transparent?

Enterprises increasingly publish sustainability reports to address concerns about their environmental and social impact. However, the voluntary nature of these reports and the lack of independent auditing often lead to skepticism regarding their authenticity, with some perceiving them as mere marketing or greenwashing tools. This study aims to investigate whether the publishing of sustainability reports truly reflects transparency and responsible behavior. The relationship between the publishing of sustainability reports, environmental responsibility policies, and transparency policies is analyzed. The research was conducted in Uruguay. A quantitative methodology was used. The sample was made up of a group of companies that evaluate their social and environmental responsibility practices. This is a non-probabilistic sample, which includes companies that publish sustainability reports and companies that do not publish them. The environmental responsibility and transparency of both groups were compared. Thirteen indicators were used to measure environmental responsibility, and eight indicators were used to measure transparency. To evaluate the relationship between the variables, different statistical techniques were used: chi-square, difference of means test, and simple correlations. Our findings reveal that: (1) enterprises publishing sustainability reports tend to have more developed environmental responsibility policies and greater transparency compared to those that do not publish, and (2) interestingly, the choice of reporting standards, particularly the Global Reporting Initiative, does not significantly impact the observed outcomes. Furthermore, the relationship among report publication, environmental responsibility, and transparency is influenced by enterprise size but remains unaffected by public trading status or capital origin (local or international). Despite its methodological limitations, this work contributes to the debate on the sincerity of companies that publish sustainability reports. Its results contribute to reducing the skepticism and distrust that exists about these reports. Also, the work contributes to the study of the relationship between environmental responsibility and the publishing of reports because it included segments of companies that are not considered in most research: medium-sized companies and private companies that are not listed on the stock market.