Influence Audit Quality Research Articles

Determinan yang Mempengaruhi Kualitas Audit dengan Due Professional Care Sebagai Variabel Intervening Pada Inspektorat Daerah Kota Palembang

This research aims to determine the direct and indirect influence of Competency, Accountability, and Time Budget Pressure on Audit Quality through Due Professional Care as an Intervening Variable. This research is quantitative research, using primary data in the form of a questionnaire. The population in this study was 61 Palembang City Regional Inspectorate Auditors, using simple random sampling, so there were 38 samples. The data analysis technique used is multiple linear regression, using SPSS version 2.6 software as a hypothesis testing tool. The research results show that Competency has no direct effect on Due Professional Care, Accountability and Time Budget Pressure have an effect on Due Professional Care, Competency and Due Professional Care have an effect on Audit Quality, Accountability and Time Budget Pressure have no effect on Audit Quality. Simultaneously Competence, Accountability and Time Budget Pressure influence Due Professional Care, and indirectly Competency, Accountability and Time Budget Pressure influence Audit Quality through Due Professional Care.

Pengaruh Faktor Eksternal Terhadap Kualitas Audit pada Perusahaan Subsektor Perbankan yang Terdaftar di Bei Periode 2021- 2023

This study aims to analyze the influence of external factors on audit quality in banking subsector companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2023 period. The external factors analyzed include audit fees, audit tenure, and audit committees. This research uses a quantitative method with a purposive sampling approach, where the research sample consists of banking subsector companies listed on the IDX that meet certain criteria. The data used are secondary data in the form of financial statements obtained from the official IDX website. Data analysis was conducted using logistic regression with SPSS software. The results of the study show that audit fees and audit tenure do not have a significant effect on audit quality. Similarly, the presence of an audit committee also does not have a significant effect on audit quality. These findings provide new insights into the need for a deeper evaluation of the factors influencing audit quality in the banking sector, especially given the critical role of banking institutions in national economic stability.

The Effect of Company Size and Audit Fee on Audit Quality

There are several factors that can influence audit quality, including company size and audit fees. The aim of this research is to determine the factors related to audit quality in companies on the Indonesia Stock Exchange. The population data used in this research are companies in the property and real estate sector in the 2020-2023 period. This research is quantitative research. The data source used is secondary data in the form of company annual financial reports for the period 2020 to 2023. Sampling was carried out using a purposive sampling method and the data obtained was 10 companies as a sample with 40 observational data. The analytical method used in this research is multiple linear regression analysis. The results of this research show that the influence of company size has a positive effect on audit quality. Likewise, audit fees have a positive effect on audit quality, because the higher the audit provided by the company, the higher the auditor's performance.

The Influence Of Audit Fee And Competency On Audit Quality Moderated By Professionalism At Kaps In Indonesia

This research aims to examine and analyze the influence of audit fee and competency on audit quality which is moderated by professionalism at KAP in Indonesia. The type of research applied in this research is a quantitative approach. The selected population was all auditors who worked at KAPs in Indonesia and were registered in the 2023 IAPI Directory. The sample was selected using convenience sampling techniques and obtained 97 respondents. This research uses WarpPLS 8.0 software as a data analysis tool. The research results show that audit fee and competency can influence audit quality at Indonesian KAP. Professionalism can also strengthen the influence of audit fee on audit quality, but cannot moderate the influence of competency on audit quality at KAPs in Indonesia.

The Influence Of Financial Performance, Audit Quality, Earnings Management On Tax Avoidance With Capital Intensity As A Moderating Variable

This study aims to analyze and provide empirical evidence on the influence of profitability on tax avoidance; the influence of leverage on tax avoidance; the influence of audit quality and earnings management on tax avoidance; the moderation effect of capital intensity on the relationship between profitability and tax avoidance; the moderation effect of capital intensity on the relationship between leverage and tax avoidance; and the moderation effect of capital intensity on the relationship between audit quality and earnings management with tax avoidance. The research methodology employed is quantitative. Secondary data sources consist of financial reports from companies in the infrastructure sector listed on the Indonesia Stock Exchange during the period 2020-2022. The population comprises companies in the infrastructure sector, with a sample size of 111 selected using purposive sampling based on specified criteria. The research employs panel data regression analysis, with data processed using Eviews version 12. Partially, the study finds that ROA, leverage, and audit quality significantly influence tax avoidance, while earnings management does not significantly affect tax avoidance. Capital intensity strengthens the influence of ROA and earnings management on tax avoidance, while weakening the influence of leverage and audit quality on tax avoidance.

The Influence of Audit Tenure, Audit Rotation, Public Accounting Firm Size, and Audit Opinion on Audit Quality (Study of Large Trading Companies Listed on the Indonesian Stock Exchange)

The purpose of this study was to examine the Influence of audit tenure, audit rotation, size of the public accounting firm (KAP), and audit opinion on audit quality. This research data analysis method uses quantitative analysis techniques and purposive sampling, namely determining the research sample using 20 out of 47 samples of large trading companies listed on the Indonesia Stock Exchange (BEI) in the period 2020 to 2022. The method used is logistic regression. Data analysis to test the hypothesis was done by using multiple regression tests. The results of the logistic regression test show that (1) audit tenure has no significant influence on audit quality. (2) audit rotation has no significant influence on audit quality, (3) the size of the public accounting firm has no significant influence on audit quality. (4) audit opinion positively and significantly influences audit quality.

Audit Quality, Auditor Specialization, and Sustainability Reporting: Their Impact on Cost of Capital Moderated by Company Size of the Kompas 100 Index in the Indonesia Stock Exchange Market

The capital market has become an attractive instrument for both local and foreign investors. This study aims to analyze and provide empirical evidence regarding the influence of audit quality, auditor specialization, and sustainability reporting on the cost of capital. Additionally, it investigates how company size moderates the relationship between these variables and the cost of capital. The study focuses on companies listed in the Kompas 100 Index on the Indonesia Stock Exchange (IDX) from 2018 to 2022. A quantitative approach is employed, utilizing secondary data available from the IDX (www.idx.go.id), specifically from company annual reports. Data collection involved recording relevant information from the annual reports of each company. The population of the study comprises companies included in the Kompas 100 Index, with a sample selected through non-probability sampling (purposive) with the criteria of being listed in the Kompas 100 Index for the consecutive periods of 2018 to 2022, sample resulted 54 companies. The data analysis method applied is Moderated Regression Analysis (MRA). The results reveal that audit quality has a negative effect on the cost of capital, while auditor specialization shows no significant effect. Furthermore, sustainability reporting also has a negative effect on the cost of capital. As for the moderating variable, company size successfully moderates the relationship between audit quality and the cost of capital, but it does not moderate the effect of auditor specialization or sustainability reporting on the cost of capital.

The Impact of Audit Quality on the Financial Performance of The Listed Jordanian Chemical Company Sector

The study aims to find out the impact of audit quality on the financial performance of the chemical company sector, to explore how audit quality, especially focus on auditor independence and the size of the audit committee, affects the financial performance (ROA, ROE, EPS) of the Jordanian chemical industries sector listed on the Amman Stock Exchange. In order to examine the data a questionnaire was distributed to study sample consists of (59) employees working within chemical companies, (48) from it valid for statistical analysis where the number of chemical companies reached (8). Ordinary Simple Linear regression method employed in the analysis of data. The study revealed that auditor’s independence has a positive and significant effect on financial performance of Chemical Company Sector. It was concluded that aspect of audit quality influence financial performance of Chemical Company. The study recommended Auditor’s independence should be increased greatly in order to enhance financial performance (ROA, ROE, EPS) of the Chemical Company Sector, by improving internal control of the company, also, Always Conduct integrity and appropriate usage tests for auditors. Shareholder should control the committee size, by controlling the audit committee members, which will reflect positively on the audit report quality.

Faktor-faktor Yang Memengaruhi Kualitas Audit

This research aims to explore the factors influencing an auditor's audit quality. The researcher is interested in conducting an in-depth study to examine the impact of audit tenure, auditor switching, and audit firm size on audit quality. This study is quantitative descriptive research utilizing secondary data derived from financial statements and annual reports of property and real estate sector companies listed on the IDX during 2018–2022. The sample used in this study consists of 168 companies, which were analyzed using IBM SPSS Statistics 25. The results of this study indicate that auditor switching significantly and positively influences audit quality. This suggests that auditor switching serves as a mechanism to maintain a less tight relationship between clients and auditors, thereby preserving auditor independence and ultimately enhancing audit quality. Conversely, audit tenure and audit firm size do not significantly affect audit quality.

Pengaruh Kompetensi Terhadap Kualitas Audit Dimoderasi Etika Auditor

This study aims to test the competence in influencing audit quality and auditor ethics in moderating the influence of competence on audit quality. This research was conducted at the East Java Provincial Inspectorate Office with a sample of 30 internal auditors. The data collection technique is by distributing questionnaires. The data analysis method in this study uses the Partial Least Square (PLS) approach using the WarpPls 8.0 analysis tool. The results of this study found that competence had a significant effect on audit quality. Auditor ethics can weaken the influence of competence on audit quality. These findings indicate that audit competence in carrying out audits is urgently needed to improve audit quality. Weakening auditor ethics can reduce the influence of competence on audit quality. This research provides important insights for internal auditors in conducting audits by improving the competence of auditors to carry out quality audits.

Does audit fee stickiness and audit quality are reciprocal?

This study examines the relationship between audit fee stickiness and audit quality to determine whether they mutually affect each other. Using panel data and fixed-effects as well as common-effects regression methods, the study evaluates how total assets, leverage, audit changes, and the Covid-19 pandemic influence both variables. This methodology was chosen for its ability to control for individual differences and handle panel data, allowing for a more accurate analysis of the relationship between audit fee rigidity and audit quality. The main findings show that total assets and audit changes have a significant positive effect on audit fee stickiness, while the Covid-19 pandemic does not significantly affect audit fee stickiness. Additionally, total assets and leverage have a significant positive impact on audit quality, whereas audit changes do not influence audit quality and the Covid-19 pandemic actually improves audit quality. Although audit fee stickiness contributes to the enhancement of audit quality, audit quality does not have a significant effect on audit fee stickiness, indicating that there is no reciprocal relationship between the two. The study suggests the need for adjustments in the audit fee setting mechanism to ensure that audit quality is maintained optimally without being influenced by fee rigidity.

Audit firm informatization and audit quality during COVID-19

PurposeCOVID-19 has forced audit firms to change the way they operate. One change has been to rely more on information technology (IT) and IT human capital to overcome COVID-19-related challenges. We refer to audit firms’ use of these two resources as audit firm informatization (AFI). It is important to understand whether AFI helps audit firms address challenges created by the pandemic. Thus, this study examines the impact of AFI on audit quality during the COVID-19 pandemic in China with a focus on IT human capital.Design/methodology/approachWe use a mixed-methods approach. First, we perform multivariate regression analyses on archival data. Specifically, we investigate the relationship between IT human capital and audit quality and the two mechanisms (i.e. improved efficiency and reduced audit risk) underlying the relationship. We also investigate how this relationship is moderated by features of clients, audit firms and individual auditors. Then we use interviews to corroborate the results of our regression analyses.FindingsOur analyses of archival data show that IT human capital positively affects audit quality through improved efficiency and reduced audit risk and that this positive impact is more pronounced for clients in non-manufacturing industries, those with a more opaque information environment, audit firms with greater industry coverage and individual auditors with less experience. Our interview data indicate that audit firms with more advanced AFI and a higher level of IT human capital in particular are less disrupted by the pandemic and are better able to use IT to address challenges associated with COVID-19. Furthermore, the results confirm that improved efficiency and reduced audit risk are the mechanisms through which AFI enhances audit quality. Finally, we identify issues associated with the use of IT.Originality/valueThis study is the first to investigate how IT human capital (and by extension AFI) influences audit quality in the context of the COVID-19 pandemic. Our findings should be of interest to practitioners and setters of auditing standards.

THE INFLUENCE OF AUDITOR ETHICS ON AUDIT QUALITY IN PINRANG DISTRICT INSPECTORATE OFFICE

Audit quality is defined as the probability of an Auditor determining and reporting fraud that occurs in the client's accounting system. The higher the audit quality produced by the auditor, the higher the confidence of information users in using financial reports. This research aims to determine the influence of auditor ethics on audit quality at inspectorate offices. This type of research is quantitative research in the form of a questionnaire with uses an exploratory approach using data collection techniques, namely primary in the form of questionnaires and secondary data obtained indirectly which is tested using descriptive statistical analysis tests, validity tests, reliability tests, classical assumption tests, hypothesis tests. The results of this research show that: (1) Auditor integrity partially influences audit quality, this is proven by a significant value of 0.033, which is <0.05. (2) Objectivity partially influences audit quality, this is proven by a significant value of 0.000 where <0.05. (3) Partial competency has no effect on audit quality, this is proven by a significant value of 0.449, which is > 0.05. (4) Auditor confidentiality does not partially influence audit quality, this is proven by a significant value of 0.179, which is > 0.05. (5) The auditor's professional behavior partially influences audit quality, this is proven by a significant value of 0.000, where <0.05. Integrity (X1), Objectivity (X2), Competence (X3), Creativity (X4) and Professional Behavior (X5) simultaneously influence audit quality, this is proven by the F valuecount 47,563 > Ftable2.53 and a significant value of 0.000 <0.05.

The Influence of Good Corporate Governance Mechanism and Audit Quality on the Level of Accounting Conservatism

The objective of this study is to determine whether Managerial Ownership, an Independent Board of Commissioners, a Board of Directors, an Audit Committee, and Audit Quality influence Accounting Conservatism in Manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2019 and 2022. The sampling technique was purposive sampling of 37 companies that satisfied the criteria. The technique employs panel data regression analysis with the Eviews 12 software. The outcomes of the study show that partial managerial ownership and the board of directors have an impact on accounting conservatism. Meanwhile, the independent board of commissioners, audit committee, and audit quality all demonstrate that they have little impact on accounting conservatism. Simultaneously, the research findings reveal that managerial ownership, an independent board of commissioners, a board of directors, an audit committee, and audit quality all have an impact on accounting conservatism.

The Influence Of Financial Distress, Due Professional Care And Locus Of Control On Audit Quality In Accounting Firms In Bengkulu City In 2019-2022

In the accounting business in Bengkulu City, the aim of this research is to determine what aspects influence audit quality, specifically looking at financial difficulties, professional care required, and locus of control. This study uses a quantitative research strategy based on questionnaires to collect primary data. All auditors employed by Bengkulu public accounting firms form the research population. A total of three KAPs from the city of Bengkulu will be registered in the Public Accounting Information System (SIKAP) in 2023. In this study, financial difficulties, locus of control, and appropriate professional care are the dependent variables. Fifteen auditors composed the sample for this study. According to the Findings, the following variables do not influence Following are some recommendations drawn from the research findings: audit quality: Financial Distress (p>0.05), Required Professional Care (p<0.026), and Locus of Control (p >0.277). This study found that audit quality was influenced simultaneously by Financial Distress, Due Professional Care, and Locus of Control, with a total effect size of 0.034<0.05.

The influence of auditor ethics, auditor independence and auditor experience with audit fees as moderating variables on auditors in public accounting firms in the Sumatera, Kalimantan, Bali and Eastern of Indonesia Regions

This research aims to determine the influence of auditor ethics, auditor independency, and auditor experience on audit quality and to find out whether audit fees can moderate the influence of these variables on audit quality. The data used is primary data with the population in this study being auditors who work at public accounting firms in the Sumatera, Kalimantan, Bali & Eastern of Indonesia Regions. In this study, an Area Sample was used which obtained 118 auditors in that area and 60 people responded or 51% of the auditors. The analytical methods used in this research are Multiple Linear Regression and Moderation Regression Analysis using SPSS as a data processing tool. The results show that auditor ethics influence audit quality, while auditor independence and experience do not influence audit quality. Likewise, audit fees cannot moderate the influence of audit ethics, audit independence and auditor experience on audit quality, and also audit fees cannot influence the audit quality.

The Influence of Audit Fees, Audit Tenure, and Auditor Switching on Audit Quality

Financial statement falsification involving company management and auditors is a prevalent issue in the business landscape. Ensuring the integrity of audit outcomes holds paramount importance in verifying the adherence of financial statements to generally accepted accounting standards (GAAP). Consequently, auditors are expected to maintain high professionalism, prioritizing objectivity over personal considerations in executing their responsibilities. This research aimed to assess the impact of audit fees, audit tenure, and auditor turnover on audit quality. Employing a quantitative research methodology, descriptive analysis and logistic regression tests were conducted to evaluate the hypotheses. The study targeted publicly traded companies within the financial sector, specifically in the insurance sub-sector, listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. Sample selection utilized purposive sampling techniques. Results reveal that audit fees significantly influence audit quality, whereas audit tenure and auditor turnover do not exhibit significant effects. This study contributes to efforts aimed at advancing audit quality.

PENGARUH KUALITAS AUDIT DAN INTEGRATED REPORTING TERHADAP RELEVANSI NILAI DENGAN VARIABEL PEMODERASI ETIKA BISNIS

This study aims to analyze the influence of audit quality and integrated reporting on value relevance, with business ethics as a moderating variable. The population of this study is manufacturing companies listed on the Indonesia Stock Exchange from 2020 to 2022. A sample of 67 companies was obtained through purposive sampling technique, resulting in 201 research data. Hypothesis testing method used panel data regression with Random Effect Model approach, and for testing the moderating variable used Moderated Regression Analysis (MRA) model. Data analysis was conducted using Eviews version 12. The results of the study show that audit quality does not have a effect on value relevance, integrated reporting has a negative and significant effect on value relevance, the results of the Moderated Regression Analysis (MRA) in the study indicate that business ethics does not have the ability to moderate or weaken the influence of audit quality on value relevance, business ethics as a moderating variable weakens the influence of integrated reporting on value relevance as the dependent variable

The impact of remote auditing on audit quality: the moderating role of technology readiness

PurposeThis study aims to investigate the impact of remote auditing on audit quality and explore the moderating role of both the client’s and the audit firm’s technology readiness in this interaction.Design/methodology/approachData was collected through a questionnaire survey distributed to 360 audit professionals in Jordan, resulting in 208 valid responses. The data was analysed using SmartPLS – structural equation modelling.FindingsThe results showed that remote auditing significantly and positively affect audit quality. This study found that the technology readiness of both the audit firm and the client greatly influences audit quality. Notably, the technology readiness of the client positively enhances the relationship between remote auditing and audit quality, while the technology readiness of the audit firm does not play such a role.Practical implicationsThe findings are of value to policymakers in terms of the positive impact of remote auditing on audit quality, and the role of technology readiness in this regard. In particular, they allow policymakers and regulators of audit profession to make informed and relevant decisions pertaining to the adoption of remote auditing. The findings also indicate the significance for audit firms and business institutions to pay special attention to developing their technology capabilities to keep abreast of rapid technology advancements, ensuring the maximum benefits for auditing profession, thereby enhancing their efficiency and effectiveness.Originality/valueThe importance of this study lies in its unique contribution to bridging the research gap related to understanding the pivotal role of technology readiness in enhancing the relationship between the use of remote auditing and the achievement of high audit quality.

Factors Affecting Firm Value With Financial Performance as Intervening Variables

This study aims to find evidence of the influence of corporate social responsibility disclosure and audit quality on firm value with financial performance as an intervening variable. The sample of this study consists of 206 companies listed in the PROPER Assessment by the Ministry of Environment and Forestry for the years 2019-2020 and 2021-2022 and also listed on the Indonesia Stock Exchange during the years 2019-2022. Sample selection was conducted using purposive sampling, resulting in 143 companies being sampled. The data used in this study are secondary data. Hypothesis testing was conducted using path analysis method using SPSS version 21 and Sobel Test. The results of this study prove that: 1. Financial performance can mediate the influence of Corporate Social Responsibility on Firm Value. 2. Financial performance can mediate the influence of Audit Quality on Firm Value.