Junior Auditors Research Articles

Penerapan Aplikasi ATLAS Terhadap Proses Penilaian Risiko (Studi Kasus pada KAP di Sidoarjo)

This research aims to determine the level of application of the ATLAS application to the risk assessment process at one of the Public Accounting Firms (KAP) in Sidoarjo. The research method used is descriptive qualitative with data collection techniques through observation and interviews with senior and junior auditors at one of the KAP in Sidoarjo. The results of this research are that the ATLAS application can be applied optimally and has an effect on the risk assessment process because this application can help auditors carry out the audit process in a more structured and orderly manner. Implementing the ATLAS application can increase the effectiveness and efficiency of the risk assessment process at KAP, thus making the ATLAS application a useful tool for improving the quality of the risk assessment process at KAP. Apart from that, the ATLAS application can also help auditors provide more rational and objective audit opinions.

On-Site or Remote? Impact of Remote Audits and Self-Monitoring of Expressive Behavior on External Auditors’ Job Satisfaction

SYNOPSIS This study examines how remote work affects external auditors’ job satisfaction. We survey 308 external auditors and measure their job satisfaction to understand how remote work frequency, self-monitoring of expressive behavior (SMEB), personality traits, technology adoption, job position, and remote onboarding experiences impact auditors’ job satisfaction in the post-COVID-19 era. Results reveal that frequent remote work is associated with high job satisfaction. Auditors who report high SMEB levels have high job satisfaction. However, the positive association between SMEB and job satisfaction decreases as auditors’ remote work frequency increases. Engagement team leaders may wish to encourage high self-monitoring auditors to continue to perform on-site work while encouraging low self-monitoring auditors to work remotely when on-site work is not necessary. We also suggest that audit firms build better supervisory relationships, provide sufficient resources for junior auditors, and continue to provide technology training to increase auditor job satisfaction. Data Availability: The data that support the findings of this study are available from the first author upon request.

The Influence of Internal Control and Client Importance on Audit Quality with Time Budget Pressure as a Moderating Variable

This study aims to empirically examine the influence of internal control and client importance on audit quality, with time budget pressure as a moderating variable. The data used in this study was sourced from a questionnaire survey distributed to respondents in March via Google Forms. Respondents were selected using purposive sampling, with criteria including junior auditors, senior auditors, and Managing Partners (leaders) from audit firms (KAP) in Bogor, Jakarta, Bali, and East Java. The final sample used in this study was 50 observations. The results of this study show that client importance has a negative effect on audit quality. Internal control has a positive effect on audit quality. Time budget pressure moderates the relationship between client importance and audit quality in a positive direction. Time budget pressure moderates the relationship between internal control and audit quality in a negative direction. Time budget pressure itself has a positive effect on audit quality. Keywords: Internal Control, Client Importance, Kualitas Audit dan Time Budget Pressure

An Exploration of Technological Innovations in the Audit Industry: Disruption Theory Applied to a Regulated Industry*

ABSTRACTTechnological innovation is increasing throughout the audit industry. Although prior research has explored how specific technological innovations have influenced the audit product and the profitability of the audit, the strategic implications of technological innovation for the audit industry have yet to be examined. To address this issue, we adopt Christensen's seminal theory of technological innovation (introduced in his 1997 book The Innovator's Dilemma) to gain insight into the results of 27 semistructured interviews with auditors and audit technical specialists. Consistent with Christensen's sustaining and efficiency strategic responses, our findings suggest that, at this time, technology is primarily being used by the audit industry to strengthen the audit industry's ability to serve mainstream clients by providing a “higher‐quality” and lower‐cost audit to replace menial tasks that historically have been done by junior auditors. We find that industry‐disruptive new market entry is currently prevented by regulatory and professional barriers; however, strategic disruption to the audit industry appears inevitable as technology is already being used in audits of nonregulated markets by new entrants. Strategically, the audit industry will survive in its current recognizable form only if self‐disruption occurs before the regulatory barriers are dropped, which requires significant upskilling in the industry to ensure that firms have the skills to be first movers whenever technological innovations are introduced.

Spiritual Intelligence as a Moderation Between Professional Ethics and Professionalism of Public Accountants

Purpose: This study aims to investigate the implementation of professional ethics on professionalism of Public Accountants with spiritual intelligence as moderating variable. Theoretical framework: Professional ethics and spiritual intelligence are needed by public accountants to achieve professionalism. The professional ethics contain principles regarding professional behavior that will govern the relationship between accountants and clients as well as the public. Spiritual intelligence is the reflection between the body and the human spirit in action. The existence of spiritual intelligence allows humans to think more creatively, broad-minded, can make or even change rules that will make the person work better. Method: This study uses quantitative approach. The population in this study is Public Accountants in the Malang area which include partners, managers, supervisors, senior auditors and junior auditors. The sample was 53 Public Accountants of 11 Public Accountants. This study uses Moderate Regression Analysis (MRA) analysis techniques. Results and conclusions: The implementation of Professional Ethics has a positive effect on the Professionalism of Public Accountants and Spiritual Intelligence moderates (strengthens) the influence of the implementation of Professional Ethics on the Professionalism of Public Accountants. Research implications: Implementation the professional ethics can improve the professionalism of the Public Accountants. The higher spiritual intelligence of public accountant can motivate him/her to implement professional ethics and finally can improve his/her professionalism. Originality/value: Including the spiritual intelligence in the professional ethics of public accountants.

The Risk of Technology Dominance in Using Digital Decision Aids in Assurance Engagements—Evidence from a Survey among Danish Auditors

SYNOPSIS Accounting firms continue to develop digital decision aids (DDAs) that reinforce consistent use of firms’ audit methodology and provide assurance for meeting regulator expectations. Firms actively promote use and reliance on DDAs, but relying on such systems risks over-reliance, impacting decision quality and heightening technology dominance. Surveying 725 Danish auditors, we sought to determine the level of reliance practicing auditors have on DDAs and understand how auditors experience these potentially deleterious effects in the field. Results show auditors rely more on DDAs when auditors are inexperienced, task complexity is high, there is familiarity with the DDA, and/or there is cognitive congruence. Junior auditors rely significantly more on DDAs than senior auditors, whereas auditors indicating low usage rely significantly less on DDAs. Overall, senior auditors and auditors not heavily using DDAs have deskilling concerns and are less positive on junior auditors’ as well as the profession’s skill development when using DDAs. JEL Classifications: M15; M41; M42.

EMOTIONAL INTELLIGENCE’S STRENGTHENS ON AUDIT QUALITY

This study aims to analyze emotional intelligence on audit quality with competence as moderation. This study used a quantitative approach. The population in this study is financial auditors in the "Big Four" Public Accountants in Indonesia from the level of partners, managers, seniors, and junior auditors. The results showed that emotional intelligence and competence had a significant positive effect on audit quality. Competence shows unsupported results as moderation on the relationship of emotional intelligence to audit quality. From the results of the study, there are several implications, namely in the recruitment process, PAF should comprehensively consider aspects of EI and competence. In the process of educating prospective auditors, there needs to be material related to emotional intelligence. When carrying out their profession, auditors need to have the awareness to implement EI. In the future, it is recommended to use the interview method so that it can ensure a more objective response from respondent.

The Role of the Audit Room in Auditor Development: Remote Work Experiences of Junior Auditors during the COVID-19 Pandemic

SUMMARY This study examines the work experiences of junior auditors during the COVID-19 pandemic (“the pandemic”). In response to the pandemic, audit firms closed offices and conducted audits in remote work environments. I used semistructured interviews to gather qualitative data about the experiences of junior auditors during the pandemic. The evidence collected suggests that the loss of the audit room (i.e., a physical space for audit teams to collaborate) during the pandemic increased challenges for junior auditors in developing technical knowledge, socializing within the firm, and separating personal and professional lives. These challenges increased the difficulty of forming a professional identity as an auditor. My data suggest that the audit room serves as a classroom, social hub, and a physical barrier between work and life. My study extends research on auditor development and provides insights into how the pandemic and remote work arrangements impacted junior auditors and professionals in general.

THE INFLUENCE OF CONTINUING PROFESSIONAL EDUCATION, AUDITOR ASSIGNMENT PERIOD, INDUSTRY SPECIALIZATION ON COMPLIANCE WITH AUDIT STANDARDS, IMPLEMENTATION OF DATA ANALYTIC TECHNIQUES, AND QUALITY OF AUDIT RESULTS IN AUDITORS OF NON-BIG 4 PUBLIC ACCOUNTING

The aim of this research is to examine and analyze the influence of Continuing Professional Education, Auditor Assignment Period, Industry Specialization on Compliance with Audit Standards, Implementation of Data Analytic Techniques , and Quality of Audit Results. This research took respondents from auditors from non- big 4 public accounting firms in the city of Surabaya from junior auditor to partner level , with a total sample of 60 people. Hypothesis testing in this research uses analysis with the SmartPLS application by testing the outer model and inner model. The research results show that continuing professional education has a significant effect on compliance with audit standards, the auditor's assignment period has a significant effect on the implementation of data analytic techniques , industry specialization has a significant effect on the quality of audit results, implementation of data analytic techniques has a significant effect on the quality of audit results.

The DETERMINANTS OF AUDIT QUALITY AT PUBLIC ACCOUNTANT FIRMS IN SEMARANG CITY

Audit quality is still widely questioned by the public because there are still various public assessments in assessing public accountant firms, this assessment can be measured by the competence of auditors who are evaluated in the audit process. Apart from problems related to auditor competence, the same is the case with auditor integrity and ethics, which are factors that determine the audit quality of a public accountant firm. This study aimed to determine the effect of independence, auditor ethics and work experience on audit quality. This study uses quantitative methods with primary data obtained from distributing questionnaires. The population in this study were all senior auditors and junior auditors at KAP in Semarang with the Convenience Sampling technique. Researchers managed to collect 30 respondents. Data analysis was performed using multiple linear regression. Based on this study, the variables of independence, auditor ethics and work experience affect audit quality.

Pengaruh Narsisme Klien Dan Pola Pikir Auditor Terhadap Penilaian Risiko Kecurangan

Financial statements are an important element in business because they reflect the state of a company. With the information in it, it can help internal and external parties consider long-term decisions. Therefore, reasonable financial reports are needed, namely based on Financial Accounting Standards and free from fraud so as not to trigger financial and non-financial losses. Fraud risk assessment is the basis for detecting fraud. With risk assessment, the auditor can determine the nature and level of audit procedures designed, and can be more sensitive to fraud signals from red flags that occur. This study aims to prove the relationship between client narcissism and auditor mindset towards fraud risk assessment based on attribution theory. In this study, auditors who work at the Jakarta Regional Public Accounting Firm with a minimum position as a junior auditor and at least one year of experience as an auditor are used as research samples. The number of samples used was 73 auditors. The data source of this research is primary data. The data collection technique with the method of distributing questionnaires with multiple linear regression analysis method. The results show that: client narcissism has no effect on the fraud risk assessment, and the auditor's mindset has a significant effect on the fraud risk assessment.

Promoting proactive auditing behaviors

AbstractIn this paper, we introduce the construct of proactive auditing behaviors to the accounting literature and report the first experimental investigation of their antecedents. Regulators and practitioners agree that proactive behaviors are needed to consistently achieve high‐quality audit outcomes, but also that these behaviors are scarce. Drawing on theory from management, accounting, and psychology, we predict that an environmental factor (autonomy) and a dispositional factor (tacit knowledge) interact to increase a range of distinct proactive auditing behaviors. These behaviors involve responding to evidence that has out‐of‐task implications, coordinating with clients to acquire task‐related evidence, and two forms of coaching junior auditors. As predicted, we find that auditors are more proactive when they have both higher autonomy and higher tacit knowledge than when they lack either or both factors. Our theory and findings inform academics, regulators, and practitioners about the types of work environments and policies that can promote auditor proactivity successfully.

Profesional Skeptimisme Auditor dan Kualitas Audit dalam Era Blockchain (Auditor Professional Skepticism and Audit Quality in The Blockchain Era)

This research aims to identify the influence of professional skepticism on audit quality through blockchain technology as a moderating variable. This research also tries to find determining factors that can increase auditors' professional skepticism. Data analysis was carried out using SEM-PLS, with auditor analysis units in Indonesia. Data was collected through questionnaires sent to auditor managers, senior auditors and junior auditors as objects receiving pressure from clients in insurance engagements. The research results show that auditors' professional skepticism has a positive influence on audit quality. The interaction between client time limit pressure and audit quality is strengthened by the presence of professional skepticism. These findings conclude that auditors must increase professional skepticism in technological sophistication to improve audit quality. In addition, the results of this study indicate that the pressure of client time constraints has a positive influence on professional skepticism.

Pengaruh Skeptisme Profesional, Beban Kerja dan Tekanan Waktu Terhadap Kemampuan Auditor Mendeteksi Kecurangan (Fraud) Pada Kantor Akuntan Publik Batam

This research was conducted with the aim of knowing how much influence Professional Skepticism, Workload and Time Pressure have on the auditor's ability to detect fraud at the Batam Public Accounting Firm. This study used an analytical method, which is quantitative data analysis and processed using SPSS version 25. The type of data used in this study was primary data in the form of a questionnaire that was measured using a interval scale. The research population is all junior auditors, seniors, managers and partners working at the Batam Public Accounting Firm who are registered in the Directory of the Indonesian Institute of Public Accountants. The research sample used a purposive sampling technique with population 92 and total sample of 70 respondents. Partially, professionalskepticism obtained results that did not have a significant effect on the auditor’s ability to detect fraud, while workload and time pressure obtained results that had a significant effect on the auditor’s ability to detect fraud. Professional skepticsm, workload and time pressure take effect simultaneously. Based on the test for the coefficient of determination, the result is 68.6%, meaning that the contribution of the percentage of Professional Skepticism, Workload and Time Pressure is 68.6% and external variable factors are 31.4%.

Communication and Psychology Audit in Internal Audit Assignment

This research was conducted to identify and analyze the psychological approach and audit communication in audit assignments. the object of this study is the internal auditor of bank x. The data collection tool in this study was a questionnaire distributed to the head of internal audit, junior auditors, senior auditors, and auditees. The data analysis technique uses multiple linear regression. The results of the study show that audit communication has a significant effect on the assignment of audit professionals. Then, audit psychology also has a significant effect on the assignment of audit professionals.

Prestasi Kerja Protégés Ditinjau dari Fungsi Pementoran dan Kompleksitas Tugas

Performance appraisal serves as feedback for employees to improve their work performance, as well as assisting employees in preparing more appropriate career development programs for the benefit of their organization. But for new employees, of course, mentoring is needed in every assignment so that it can be carried out properly. This mentoring can help each new employee (protégés) and build interpersonal relationships between employees. In the Public Accounting Firm, auditor staff are also required to have good knowledge so that mistakes do not occur in giving audit judgments and completing audit assignments which are sometimes very complex. For this reason, a mentoring process is needed so that the new auditor staff can complete their field work. This study divides mentoring based on mentoring relationship activities, namely the training function, and the role modeling function and social support function and looks at the effect of task complexity on work performance produced by the auditor staff. Respondents in this study were external auditor staff who worked at KAP Semarang City who had experience working as junior auditors for less than 3 years. Data obtained by distributing questionnaires. From the research results it turns out that the training function, the role modeling function, and the social support function have a positive influence on the work performance of the proteges, but the task complexity has no effect on the work performance of the junior auditors. This study provides a broader picture of the benefits of mentoring for junior auditors, specifically which mentoring functions are effective in increasing the work performance of junior auditors.

PENGARUH STRES KERJA AUDITOR, PROFESIONALISME AUDITOR DAN PENGALAMAN KERJA AUDITOR TERHADAP KUALITAS AUDIT

This study was conducted to analyze the effect of auditor’s work stress, auditor professionalism, and auditor’s work experience on audit quality with the population of respondents working as auditors at public accounting firms domiciled in Jakarta with the junior auditor to senior auditor positions. The number of respondents collected in this study was 90 respondents. This study uses multiple linear regression analysis and data processing using the Statistical Package for Social Sciences (SPSS) version 25.0. The results showed that the auditor’s work stress did not affect audit quality. Meanwhile, auditor professionalism and auditor’s work experience have a positive effect on audit quality.

Abnormal audit fees and accounting quality: further evidence from audit hours

ABSTRACT This study examines whether auditors compromise accounting quality by charging abnormally high audit fees. In particular, by drawing on the audit pricing theory, we investigate the relationship between abnormal audit fees and accounting quality, using fee residuals derived from an audit fee model that includes audit hours and hourly fees. Using listed firms in the Korean stock market, we find that the negative relationship between abnormal audit fees and accounting quality does not hold when we use abnormal audit fees estimated after controlling for audit hours. In contrast, we find a negative association between abnormally high audit fees, estimated after controlling for hourly fees, and accounting quality. Collectively, these findings support the interpretation that the negative relationship between abnormal audit fees and accounting quality, identified in previous studies, is driven by increased audit hours owing to lower accounting quality. Furthermore, we find that these results are driven by audit partner hours and senior auditor hours rather than junior auditor hours. This suggests that audit firms impose higher-level audit hours in the presence of low accounting quality, which results in higher audit fees.

PENGARUH FEE AUDIT DAN KOMPETENSI AUDITOR TERHADAP MOTIVASI AUDITOR PADA KANTOR AKUNTAN PUBLIK DI KOTA PADANG

The purpose of this study to provide empirical evidence of the effect of audit risk, auditor experience and professionalism on the consideration of the level of materiality at the Public Accounting Firm in the city of Padang. The population in this study are all public accoounting firms in the city of Padang. Purposive sampling technique is the sampling technique used in this study. The sample in this study were all senior auditors and junior auditors at the Public Accounting Firm Padang. This type of research is quantitative research. Multiple linear regression analysis was used in this study the audit Fee was positive and had a significant effect on auditor motivasion, which was indicated by a significant value of 0,000 <0,05, and auditor competence have a positive and significan effectt on auditor motivasion. Level indiated by a significant value of 0,000 <0,05

PENGARUH TIME PRESSURE, AUDIT RISK, DAN LOCUS OF CONTROL TERHADAP PENGHENTIAN PREMATURE PROSEDUR AUDIT PADA BADAN PEMERIKSA KEUANGAN REPUBLIK INDONESIA PERWAKILAN SUMATERA BARAT

Premature termination of audit procedures is an event where the CPA reduces one or more audit actions required, and does not take alternatives and directly affects audit quality. The purpose of this study was to determine the effect of time pressure, audit risk, and locus of control on premature termination of audit procedures at the Supreme Audit Agency of the Republic of Indonesia, Representative of West Sumatra. The sample used is a senior or junior auditor from the Supreme Audit Agency of the Republic of Indonesia Representative of the Province of West Sumatra with a sampling technique that is purposive sampling. The analytical method used is multiple linear regression method. Based on the hypothesis, the research results simultaneously show that time pressure and audit risk have a positive effect on premature termination of audit procedures, while locus of control has a negative effect on premature termination of audit procedures. Partially, time pressure, audit risk, and locus of control have a positive effect on premature termination of audit procedures