Influence Audit Quality Research Articles

The Influence of Audit Quality and Audit Committee on the Quality of Financial Reporting of Companies Registered on the Jakarta Islamic Index (JII)

This study aims to determine the impact of the quality of the audit and the audit committee on the quality of financial reporting at companies included in the Jakarta Islamic Index (JII). using the target sampling method. The resulting samples were 26 real estate and real estate companies included in the Jakarta Islamic Index (JII). Hypothesis testing using multiple linear regression. Based on the results of the hypothesis test, it has been found that the quality of the audit, the size of the audit committee, the independent audit committee have no influence on the quality of the financial statements, while the meetings of the audit committee and the experience of the audit committee have a significant impact. had a positive impact on the quality of the financial statements. Participation

Public accountant professional skepticism behavior in improving audit quality: A path analysis

This study investigates the relationship between behavioral observation responses, namely accountability, due professional care, and professional skepticism, and their collective influence on audit quality within public accounting firms. By highlighting the mediating role of professional skepticism, our study offers a model that integrates cognitive dissonance theory with attribution theory, thereby advancing understanding in the field. Furthermore, this study employs a one-shot study approach with individual auditors as the unit of analysis. Data was collected through surveys administered to auditors working in public accounting firms registered with The Indonesian Institute of Certified Public Accountants in Jakarta. The sample comprised 123 auditors selected via Stratified Random Sampling. Path analysis using the AMOS program was employed for data analysis. The results indicate that when auditors feel a sense of accountability and exercise due professional care, they are more inclined to approach their work with heightened skepticism, positively influencing audit quality. This suggests that accountability and due professional care serve as catalysts for fostering a critical mindset among auditors. Consequently, the combined impact of these factors, along with professional skepticism, significantly contributes to enhancing audit quality, highlighting the interconnectedness of these elements in driving effective auditing practices.

Exploring Communication Channel Selection for Enhanced Audit Quality: Internship Student's Perspective

Effective communication is essential for maintaining audit quality and providing assurance over financial information. This study investigates auditors' communication channel preferences and their impact on audit quality in the context of digitalization and changing communication norms. The research aims to address two primary questions: the communication channels auditors prefer and use for audit-client communication, and how the choice of communication channels influences audit quality. The audit quality is measured through audit effort and auditor performance using a descriptive and quantitative research design. The preferred and actual communication channels are categorized as traditional (face-to-face) and technology-mediated (e-mail, instant messaging, phone calls). The findings reveal that while auditors prefer in-person meetings and texting platforms, they mostly use technology-mediated communication during audits, possibly due to factors like the COVID-19 pandemic. The study contributes to a deeper understanding of auditors' communication choices and their impacts on audit quality. It suggests that the complex relationship between communication channels and audit quality needs further exploration, potentially through larger sample sizes and mixed-method approaches. The insights gained from this research can benefit audit practitioners, regulators, and educators in enhancing audit communication practices and quality.

The Role of Audit Risk in Improving Audit Quality

Audit quality is closely related to the auditor's audit process. Attitude and Cognitive Auditor is very necessary for completing the audit; besides that, audit risk considerations play an important role in decision-making by the auditor. Various ways and processes of audit work also adapt to circumstances that are not usually carried out. Therefore, audit quality needs to be studied more deeply so that in the future, the audit process can remain of high quality in all conditions. This study aims to examine the effect of audit quality in terms of audit skepticism, planning, and risk, which play a moderating role. The sample of this research is 265 auditor respondents in Indonesia. A research method is a quantitative approach tested through path analysis. Statistical testing was carried out using the SmartPLS 3 testing tool. The results showed that professional Skepticism affected audit quality. Furthermore, Audit Planning influences Audit quality. Audit risk is proven to strengthen the relationship between professional Skepticism and audit quality. However, Audit Risk has different results, which does not strengthen the relationship between audit planning and Audit Quality. Therefore, audit risk needs to be corrected and considered by the auditor in terms of professionalism and audit planning. It aims to improve audit quality. Future research can consider the use of information technology, which is a major part of the audit process

Impact of Audit Tenure, Fee and Auditor Specialist on Audit Quality

ABSTRACTProblems related to low audit quality are significant problems and require careful consideration, because they can hinder the preparation of accurate audit reports. This concern is not only limited to Public Accounting Firms but also extends to Public Accounting Firms that have high credibility, such as the Big Four. Several examples of low audit quality within the Big Four were highlighted in recent announcements by the PCAOB (Public Company Accounting Oversight Board) in 2016 and 2017, which resulted in sanctions against several of these companies. This situation requires research to assess the impact of auditor specialization, audit tenure and audit fees on audit quality in manufacturing companies audited by the Big Four Public Accounting Firms. This research used purposive sampling to obtain a total sample of 172 companies. The data analysis technique used in this research is multiple regression analysis using SPSS 23. The research results show that audit tenure, audit fees and auditor specialization influence audit quality.

Ownership Concentration and Audit Actions

This study presents current evidence on the impact of different corporate ownership types on audit quality in Oman and potentially in other developing countries with similar institutional environments, such as GCC countries. While previous research has primarily focused on overall ownership concentration, this study aims to examine the role of specific shareholder identities and their influence on the demand for audit quality. This research sheds light on the relationship between ownership identities and audit quality of Omani financial companies listed on the Muscat Stock Exchange from 2014 to 2020. This study employs additional analysis to mitigate potential confounding factors and ensure robust results. Additionally, a GMM test establishes the robustness of our findings, alleviating potential endogeneity concerns. The findings highlight the positive impact and significance of bank, government, and foreign ownership in promoting high audit quality. In contrast, ownership by financial institutions (non-banks) and block holder concentrations negatively and significantly impact audit quality. In addition, this study found that family members on boards play positive moderating roles in the relationship between ownership concentration and audit quality. In addition to contributing to the existing literature, this study provides valuable insights for regulatory bodies to consider the role of ownership types in their decision-making processes. Our findings also assist investors in making informed choices and offer a better understanding of how ownership structures influence audit quality for other stakeholders. The implications of this research extend beyond Oman and can be relevant to countries with similar ownership structures and regulatory frameworks.

Audit engagement partner ideology, ideological homophily, and audit quality

AbstractPrevious studies have shown that audit quality is influenced by the audit engagement partner's characteristics. Extending this literature, we examine the association between audit engagement partner ideology (i.e. conservatism) and audit quality. We find that clients whose audit engagement partners are ideologically more conservative receive higher quality audits, as indicated by lower discretionary accruals than clients with less conservative auditors. Additionally, we find evidence that the relation between the auditor's ideology and that of the client's executives influences audit quality, as does the ideological homophily between the auditor and the client's audit committee. Homophilous pairings between the audit engagement partner and the client's executives, where the two parties share a similar ideology, are associated with both higher discretionary accruals and higher probabilities of restatement. Discretionary accruals are also shown to be higher when engagement partners share an ideology with their client's audit committee. We interpret these results as evidence of less effective monitoring by the engagement partner when they share political views with their clients.

Audit quality, value relevance, integrated reporting and the moderating role of business ethics: evidence from European ESG firms

PurposeThis study aims to investigate the relationship between audit quality and value relevance and subsequently ascertain the moderating effect of business ethics on integrated reporting (IR)–value relevance.Design/methodology/approachThis study applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries to analyse data of 510 companies belonging to the environmental, social and governance (ESG) index between 2010 and 2022.FindingsA significant positive relationship was found between audit quality and value relevance. The results also suggest that IR has significant explanatory power on value relevance, and that business ethics moderate the relationship between IR and value relevance in European ESG firms.Practical implicationsManagers will see IR, business ethics and audit as a business strategy with incremental market value. In this regard, this study tried to provide insights and managerial solutions for managers of international companies to improve their strategy by drawing on the social, moral and business ethics approach. This finding will improve the informational relevance for investment opportunities, thus resulting in improved business performance.Originality/valueTo the best of the author’s knowledge, this is the first study to investigate the moderating role of business ethics in the relationship between IR and value relevance. This paper fulfils a recognised need to study the influence of audit quality on investor decisions. Furthermore, the contribution of this study could be observed in the fact that the market value analysis differs between the contractual and the business ethics approaches. Also, including a moderating variable in the explanation and determination of value relevance remains somewhat underexplored.

Dapatkah Good Corporate Governance Mencegah Penghindaran Pajak?

ABSTRACT
 This study was conducted to examine the influence of audit quality, audit committee, independent commisioners, and institutional ownership on tax avoidance. A quantitive research method was employed. The research population consisted of 238 data points. The sampling technique used was purposive sampling, resulting in 188 data points that met the criteria. Outliers were identified, and 27 data points were removed, leaving 161 data points for testing. Data analysis techniques used in this research included descriptive statistics, classical assumption test, multiple linear regression analysis, model testing, and hypothesis testing. The result of the study that audit quality has a significant positive impact on tax avoidance, independent commissioners have a significant negative impact on tax avoidance, while the audit committee and institutional ownership do not have an impact on tax avoidance.
 Keywords : Audit Quality, Audit Committee, Independent Commisioners, Institutional Ownership, Tax Avoidance

The Influence of Audit Quality on Profit Quality in Sharia Banks Listed on the Indonesia Stock Exchange

A healthy company will have good earnings quality, and an independent public accountant will give a good value to the company's earnings quality. This study aims to determine the effect of audit quality on earnings quality in sharia banks. This study uses explanatory research based on hypothesis testing. The data source is secondary data from sharia banking companies listed on the IDX for the 2021-2022 period and is based on quarterly financial reports. The sampling technique was purposive sampling with a total sample of 4 sharia banks. The analysis used is descriptive, simple linear regression, and hypothesis testing. The results showed that there was no significant effect between audit quality variables on earnings quality. The audit quality of sharia banking companies listed on the IDX cannot be determined from the quality of the auditors. This is indicated by the formation of sharia banking which must have reliable governance to encourage strong and effective sharia compliance so that the public image, namely the interests of stakeholders, can realize economic activities in accordance with sharia principles.

Influence of Auditor Professionalism and Competence on the Quality of Internal Audit

This thesis entitled "The Effect of Professionalism and Auditor Competence on the Quality of Internal Audit Study at the Bandung Regency Housing, Settlement and Land Office" this research is a quantitative research, which aims to find out: 1) The magnitude of the influence of auditor professionalism on the quality of internal audit, 2) The magnitude of the influence of auditor competence on the quality of internal audit, and 3) The magnitude of the influence of audit quality on the quality of internal audit. The sampling technique used was the distribution of questionnaires with a total of 30 respondents.Tests conducted in this study include validity tests, reliability tests, classical assumption tests (normality tests, heteroscedasticity tests and, multicolonicity tests), simple linear regression, determination coefficient tests and t tests processed using the help of SPSS (Statistical Product and Service Solutions) software for Windows version The results of this study show that 1) There is an influence of auditor professionalism on the quality of internal audit. 2) There is an influence of auditor competence on the quality of internal audit. 3) There is an effect of audit quality on the quality of internal audit.

The Effect of Good Corporate Governance and Auditor Performance on Audit Quality with Integrity as a Moderating Variable

Good Corporate Governance or corporate govenance is a company’s effort to create a pattern of conducive ralationships between steakeholders in a company. Because a conducive relationship between these stakeholders is a prerequisite in realizing maximum company performance to support increasing company value. With the statement above, it is clear thah corporate governance is closely related to the value of a company and of course also closely related to financial performance within the company. This research goals to examine the effect of Good Corporate Governance and auditor performance on audit quality, with integrity as a moderating variable. The sample selection technique used in this study was a purposive sampling technique with 100 samples. The data collection method used is a questionnaire, by distributing questionnaires in public accounting firms (KAP). The data analysis technique used to test the hypothesis in research is Partial Least Square (PLS) analysis, which is a Structural Equation Modeling (SEM) equation model with a variance approach or a component-based structural equation model. The results of the study show that good corporate governance, auditor performance influences audit quality. And also shows that integrity is able to moderate the performance of the auditor, which will affect audit quality. On the other hand, the research results show that integrity does not moderate Good Corporate Governance on audit quality.

Pengaruh Pengalaman Auditor Dan Etika Auditor Terhadap Kualitas Audit Pada Kantor Akuntansi Publik (KAP) Surabaya

Every company has an audit with the aim of checking whether the financial statements that have been made are presented in accordance with the reporting standards. The importance of the role of the auditor in the audit process requires the auditor to be able to work optimally. There are several factors that influence the auditor in conducting an audit, one of which is the auditor's experience and auditor ethics. The purposes of conducting this research are: 1) To find out whether Auditor Experience has a partial effect on Audit Quality, 2) To find out whether auditor ethics have a partial effect on Audit Quality, and 3 To find out whether Auditor Experience and auditor ethics have a simultaneous effect on Audit Quality. This research uses a quantitative approach. This research is also included in the causal quantitative research conducted at KAP in Surabaya. The population in this study were auditors who worked at the Arsono and Jimmy Public Accounting Firms, Teramihardja, Pradhono, Chandra and Danny Wibowo KAPs, with a total sample of 30 people. Data comes from primary data sources obtained from distributing questionnaires. Data analysis uses multiple linear regression analysis. The results show that: 1) Auditor experience influences Audit Quality, 2) Auditor Ethics influences Audit Quality, and 3) Auditor Experience and auditor ethics simultaneously influence Audit Quality. Therefore, it is hoped that the Public Accounting Firm (KAP) in Surabaya can improve Auditor Experience and Auditor Ethics to improve audit quality..

The Influence of Audit Quality, Company Financial Condition, Previous Year's Audit Opinion, Company Growth on Acceptance of Going Concern Audit Opinion in Companies Listed on the IDX

The responsibilities of auditors currently do not only focus on assessing the fairness of financial statements and detecting fraud, but also on assessing the company's ability to maintain its survival. This is due to the demands of the shareholders to the auditor to provide early warning about the prospects of a company as consideration before deciding an investment decision. The research's goals were to examine the effect of the audit opinion received in the quality of the audit, financial condition of the company, previous years against the acceptance and the company's growth of a going concern opinion. The samples of this research were the companies that suffered losses three years in a row and were listed on the Indonesian Stock Exchange (ISE) from 2011 to 2013. The hypotheses were tested using a logistic regression method. The results of this research showed that the quality of audits and previous audit opinions had a significant effect, but the financial variables and growth companies weren't significantly influenced by going concern opinions.

NAVIGATING AUDIT QUALITY: UNRAVELING THE IMPACT OF OBEDIENCE, TASK COMPLEXITY, AND INDEPENDENCE

This paper investigates the intricate relationships between obedience pressure, task complexity, independence, and audit quality, drawing insights from selected studies. The research underscores the vital role of independence in mitigating external pressures, highlights the amplified impact of obedience pressure under high task complexity, and emphasizes the need for tailored training to navigate challenges. Theoretical frameworks shed light on auditor behavior, accentuating the importance of resilience and ethical conduct. Comparative analysis reveals the nuanced interplay of factors influencing audit quality, offering a holistic perspective for auditors, regulators, and stakeholders seeking to enhance trust, transparency, and accountability in the audit process

AUDITOR DYNAMICS ON AUDIT QUALITY

This study conducts a literature review on audit quality over the past few decades from various parts of the world. The main objective of this review is to evaluate the research contributions made in understanding audit quality issues and identify gaps in the literature that require further research. The reviewed studies in this research are grouped into seven different categories to provide a comprehensive framework of understanding. Through this review, existing knowledge on audit quality in the literature will be summarized, and research gaps will be identified. This provides a strong foundation for further research that can deepen our understanding of the factors influencing audit quality and their related consequences.

Transfer pricing and tax avoidance: Moderating role of audit quality

Transfer pricing can confer advantages to companies, such as enhancing their business competitiveness and facilitating internal fund transfers. However, in practical application, companies also exploit transfer pricing for the purpose of tax avoidance, aiming to minimize their tax liabilities. Consequently, this practice has been observed to have adverse implications for the state, specifically in terms of reduced tax revenue. To explore the impact of transfer pricing on tax avoidance, researchers undertook an empirical examination. They introduced the variable of audit quality as a moderator to assess its influence on the relationship between transfer pricing and tax avoidance. The study focused on a sample of manufacturing firms listed on the Indonesia Stock Exchange, employing a purposive sampling technique. To ascertain the effects of transfer pricing variables on tax avoidance and the moderating influence of audit quality, the researchers conducted multiple linear regression tests. The findings of the study indicate a positive association between transfer pricing and tax avoidance. This research provides valuable contributions that companies engaging in transfer pricing practices are, indeed, employing them as a form of tax avoidance strategy, aiming to minimize their corporate tax obligations. However, the study does not provide evidence supporting the notion that the quality of auditors can mitigate transfer pricing undertaken for the purpose of tax avoidance.

Studi Literatur : Green Auditing

This study describes Green Auditing, specifically referring to the role of Green Auditing in influencing audit quality. The main method used in this study is a library research method with a qualitative approach. The data used in this study are secondary data in the form of previous research journals that discuss Green Audit. In conclusion, the influence of green auditing on audit quality can be interpreted as an audit carried out in accordance with established accounting standards and auditing standards. The results of the research study of the literature, Green Auditing is interrelated with audit quality.

The Influence of Audit Quality in Controlling Practice Earnings Management

The Influence of Audit Quality in Controlling Practice Earnings Management

The Role of Audit Quality as a Moderating Variable in Relationship Between Quality of Audit Committee, Company Size and Financial Report Integrity of Manufacturing Companies Listed in IDX

With audit quality serving as a moderating variable, the goal of this study is to examine and collect empirical data on the impact of audit committee quality and business size on the caliber of financial reports. Accounting knowledge, committee size, and meeting frequency all indicate the quality of an audit committee. Manufacturing businesses that were listed on the Indonesia Stock Exchange between 2013 and 2016 were used as a sample in this study. 33 manufacturing enterprises with a 4 year observation period were included in this study. Purposive sampling was used to collect the data. The multiple regression model and moderated regression analysis were used in this study to examine the hypotheses. The findings of this study revealed that the caliber of financial reports was unaffected by the audit committee's experience, the frequency of its meetings, or the size of the accounting and financial firms. Regarding the moderating influence of audit quality, the findings indicated that it was unable to moderate the relationship between the business size and the integrity of financial reports and all audit committee quality proxies.