Junior Auditors Research Articles

Predictors of Audit Quality: An Empirical Model

This study aims to determine the relationship of auditor’s independency, work experience, professional competence and audit accountability on audit quality through a survey conducted in five branches of the Public Accountant Firm Doli, Bambang, Sulistiyanto, Dadang & Ali (CPA FIRM DBSDA), based in Bandung, Malang, Central Jakarta, West Jakarta and South Jakarta. The population is permanent employees who have worked for at least one year in five DBSDA CPA FIRM branches and have completed a Bachelor of Education. The research sample consisted of 38 employees who responded to the distributed questionnaire. The results showed that independence, work experience, professional competence and audit accountability have a positive influence on audit quality. Through the partial testing, we find that auditors’ independency, work experience, professional competency, and accountability have a positive effect on audit quality. The practical implications of the results of the study are: (1) audit work is to be carried out by experienced auditors who have adequate knowledge, (2) senior auditors need to supervise junior auditors in conducting audits and examine work performed by junior auditors, and (3) auditors need to maintain auditor independence to ensure that auditor independence is not influenced by the client.

Does Government Regulation No. 20 of 2015 Affect Auditor Independence?

This study aims to investigate whether the Government Regulations No 20 the Year 2015 regarding the rotation of auditors will affect auditor independence. This study conducted observations on mining companies listed on the IDX by dividing into two observation periods, namely before and after the regulations applied. The results showed no change in auditors' independence to issue going concern audit opinions influenced by Audit Firm (AF) tenure. Both before and after the regulations applied. However, there are changes in audit partner (AP) tenure in influencing auditor independence before and after the regulations applied. The article suggests that audit partner supervision by authorities and professional associations needs to be improved based on the results of the study. It includes increasing supervision and supervision from Audit Firm leaders on all audit teams in the field, from junior auditors and senior auditors to in-charge managers.

Pengaruh Tekanan Anggaran Waktu, Tekanan Ketaatan, dan Pengalaman Auditor Terhadap Audit Judgment (Studi Pada Kantor Akuntan Publik Provinsi Daerah Istimewa Yogyakarta)

This study aims to examine the effect of time budget pressure, obedience pressure, and auditor experience on audit judgment to auditors in Public Accounting Firm of Yogyakarta as partially. The population are the auditors who works at Public Accounting Firm of Yogyakarta. Sampling method in this research using purposive sampling with criterion of senior auditor and junior auditor. Data analysis technique used is multiple linear regression analysis method with significant level (α) 0.05. The questionnaire used in this study was 35 out of 38 questionnaires. The results of this study indicate that the time budget pressure negatively affect on audit judgment,while the obedience pressure and auditor experience have a significant positive effect on audit judgment.

The Influence of Audit Staff Quality and Client Type on Audit Evidence Collection with Communication Type as Moderation

This study aims to examine the effect of audit staff quality (staff in-charge or auditors who carry out audit tasks) and the client type on the audit evidence collection is moderated by the communication type. The study population was auditors working in the Makassar Public Accounting Firm. The sampling technique used was purposive sampling, while the data collection was done by distributing questionnaires to all auditors who met the sample criteria. The samples are thirty-three auditors from seven public accountant office in Makassar city. The hypothesis test was conducted using Smart PLS 3. This study found that the audit staff quality, client type, and communication type had a positive effect on the collection of audit evidence directly. Furthermore, the moderation test results found that the communication type strengthens the relationship between the client type and the collection of audit evidence. It means that while gathering audit evidence, the higher the audit staff quality, the more evidence they can obtain. The same result also found in the relationship between the client type and the audit evidence collection. When the client type is friendly, the more audit evidence is gathered. Based on these results, it is suggested that junior auditor must build their confidence in dealing with the clients.

Friends in Low Places: How Peer Advice and Expected Leadership Feedback Affect Staff Auditors’ Willingness to Speak Up

Junior auditors collect the bulk of audit evidence, yet they do not always speak up to communicate potentially important audit issues. Such inappropriate “voice” decisions can endanger audit quality. We examine whether and how staff auditors influence each other in making voice decisions. First, a survey provides descriptive evidence that staff auditors consult their peers for advice on whether to speak up. Next, two experiments provide evidence that voice advice among peers at the staff level can be problematic. We find that staff auditors consistently underestimate the importance of raising issues compared to their supervisors, and they rely on social cues that are not diagnostic of issue importance in giving voice advice to peers. Finally, we predict and find that staff auditors tend to follow peer advice when it confirms their initial stance, and that an expectation of high (versus low) quality supervisor feedback increases their willingness to speak up. Most importantly, we find that contradictory peer advice only influences staff auditors’ willingness to speak up when leadership feedback is not expected to be of high quality. Together these results indicate that staff auditors seek out and follow voice advice from their peers, but appropriate leadership feedback practices can mitigate the negative impact of peer advice on upward communication.

The Effect of Audit Quality and Corporate Governance on Auditor Performance: An Empirical Study on Public Accounting Firms in Indonesia

The purpose of this study was to test the effect of audit quality and corporate governance on auditor performance. The population of this study was 600 auditors in public accounting firms in Malang and Surabaya, East Java, Indonesia. Data were collected from 150 auditors consisted of partners, managers, supervisors, senior auditors, and junior auditors in the public accounting firms through a questionnaire survey. Structural Equation Modelling was employed to test the relationships. The result of this study showed that audit quality and corporate governance had a significant effect on auditor performance. This study was limited only to the implementation of audit quality and corporate governance on auditor performance in Public Accounting Firms in East Java, Indonesia. The study was expected to reveal audit quality and corporate governance in Public Accounting Firms in East Java to improve auditor performance.

The Effect of Lowballing on Auditor Independence and Audit Opinion (Case Study at the Public Accounting Office for the Special Capital Region of Jakarta)

This study aims to examine the effect of lowballing on auditor independence and audit opinion. This study uses a sample of 200 respondents who work as auditors in the Public Accountant Offices in the DKI Jakarta areas which are listed in the 2017 Public Accountants Office Directory published by the Indonesian Institute of Certified Public Accountants (IAPI). This study uses primary data with a questionnaire. Auditors participating in this study include junior auditors, senior auditors, managers and partners who carry out work in the field of auditing. The analytical method used to test hypotheses is Simple Linear Regression. The final results of this study are that Lowballing has a significant effect on Auditor Independence and Lowballing has a significant effect on Audit Opinion. Keywords : lowballing, auditor independence, Audit Opinion DOI: 10.7176/RJFA/11-4-05 Publication date: February 29 th 2020

PEOPLE AND AUDIT PROCESS ATTRIBUTES OF AUDIT QUALITY: EVIDENCE FROM MALAYSIA

This study seeks to add to understanding of the concept and attributes of audit quality from the perspective of those responsible for delivery audit services, the auditors, as a key constituent group in the auditing system. The study surveyed two groups of external auditors (group 1- audit partners and managerial level and, group 2 - senior auditors and junior auditors), as a basis to compare their perceptions on important of auditors and audit process attributes in achieving audit quality in practice. The study was conducted in the form of a survey, with data being gathered via questionnaire. Returned surveys from external auditors yielded a 37% response rate. Overall, top 5 highest rated attributes of audit quality reported to be most important in determining audit quality are: compliance with the International Standard Quality Control (ISCQ) 1, obtaining credible and sufficient audit evidence, technical expertise of audit team, audit work meeting the audit firms’ quality standards, and competency of the audit team. Further analysis shows that the two groups of respondents have differential views on attributes of audit quality in practice. Group 1 perceived attributes of audit quality are related to auditor’s assessment of risk and internal quality review procedures within the audit firm. In comparison, group 2 perceived auditors’ competency and compliance with relevant standards as indicators of audit quality. This study suggests differences in underlying view about attributes audit quality in practice by the two groups of auditors. Public accounting firms might be interested to understand such underlying differences so that efforts in improving audit quality in practice would be focusing on the key attributes that perceived to be important on delivery high-quality audit services. This study is significant by extending the literature on audit quality and also provides useful input to public accounting firms in improving audit quality in practice.

PERSEPSI AUDITOR TENTANG MOTIVASI AUDITEE MELAKUKAN AKUNTANSI KREATIF (CREATIVE ACCOUNTING)

This research objective is to know how the perception of senior and junior auditors, whether there are differences between them, regarding of creative accounting practices conducted by the auditee. This research sample are consist of auditor at public accounting firms in the area of Tangerang and Jakarta with 86 respondents. Data were obtained from questionnaires which distributed to the research place. Tests on this research using validity test, reliability test and hypotheses test through independent sample t test. The results of this research stated that the whole auditors (senior or junior) agree with the creative accounting practice done by auditee and there were no difference in perception between senior and junior auditors on the creative accounting practice that assessed by three components of assessment, that are business ethics, quality of financial statements and manager motivation

How Do Audit Team Workloads and Audit Team Staffing Affect Audit Outcomes? Archival Evidence from U.S. Audits

We use U.S. data from a global accounting firm to investigate how two key elements of audit teams –workloads and staffing continuity – affect the audit. We find that heavier team workloads are associated with lower audit quality, particularly when team members have lower performance ratings or have total workloads that exceed 60 hours per week. In addition to finding evidence of employee burnout, we also document an incremental distraction effect. Specifically, we find that audit quality on the primary client suffers when team members spend more time during busy season on other concurrent clients. Regarding continuity, we find that greater year-over-year team staffing continuity is associated with improved audit quality, efficiency, and profitability. These effects are strongest when returning team members are highly rated or work in smaller audit offices. Finally, the effects of workload and continuity on audit quality at the team level are driven by audit seniors and audit staff, suggesting that offices should be particularly careful as they develop schedules for junior auditors. Overall, our study provides important new evidence about audit teams as called for by academics and regulators.

Organizational learning and job satisfaction of trainee auditors: a case study of Chinese CPA firms

Purpose This study aims to investigate the organizational learning of trainee auditors who represent the young generation of new entry-level professionals in CPA firms, and examines the possible associations between organizational learning and job satisfaction. Design/methodology/approach A questionnaire survey is administered among the target group of trainee auditors to explore possible approaches to their organizational learning in CPA firms. The results are used to generate organizational learning variables, which enable us to empirically test the research hypotheses regarding the association between organizational learning and job satisfaction. Findings The authors conclude that there are three main dimensions of organizational learning for new entry-level professionals in CPA firms, namely: workplace interactions, supervising and monitoring and supportive informational systems. The authors also find that workplace interactions and supportive information systems are significantly associated with job satisfaction. The authors show that the females and males prefer different approaches to organizational learning in CPA firms. The authors also find that trainee auditors who work for bigger CPA firms enjoy more job satisfaction than those working for smaller CPA firms, and that male trainee auditors are more easily satisfied with audit jobs than female trainees. Research limitations/implications This study is limited in that its sample is composed of trainee auditors, who are used to proxy for entry-level professionals in CPA firms. Future studies can include a direct focus on the organizational learning of junior auditors in CPA firms. Future studies can also investigate organizational learning in the firm-wide context in which CPA firms and their employees are considered as part of a larger situational process of organizational learning. Practical implications The conclusions can help to improve practice management and human resource policies in CPA firms. The findings highlight the importance of establishing an effective organizational learning culture, and suggest how this can be achieved by providing friendly and instructive workplace interactions, helpful supervisory and mentoring relationships, and better information support. Originality/value This study contributes to the audit literature by identifying the three dimensions of organizational learning for entry-level professionals in CPA firms. The authors substantiate the argument that mentor-protégé relationships in CPA firms have different effects on job satisfaction for female and male trainee auditors.

APAKAH TUNTUTAN PEKERJAAN DAN STRES KERJA PENENTU TURNOVER INTENTION AUDITOR PADA BEBERAPA KAP DI JAKARTA

This study aims to analyze the effect of job demands, job satisfaction, and job stress on intention to leave work (turnover intention). This study also intends to study the role of job satisfaction and job stress variables in mediating the relationship between job demands and turnover intention.
 Respondents of this study consist of 50 senior- and junior auditors who are working at the Public Accounting Firms (KAP) and have a maximum of 5-year working experience. The data was solicited through a research questionnaire written in Google forms, where link to the questionnaire was distributed to the respondents by email and WhatsApp. Path analysis is used in analyzing the data following the single-step multiple-mediator model which was introduced by Preacher & Hayes, while data processing is performed using SPSS 21.
 The results found a significant positive effect of job demands on turnover intention mediated by work stress. Nevertheless, as job demands did not directly affect turnover intention, the relationship between the two occurred only through work stress. These findings indicate that the high job demands faced by auditors working at the KAP will increase work stress. Furthermore, the high level of work stress will increase their desire to leave work (or to increase turnover intention).

KINERJA AUDITOR PEREMPUAN DITINJAU DARI KOMPLEKSITAS TUGAS DAN KOMITMEN ORGANISASI

This research is a form of quantitative research to produce a model of performance improvement of auditors by conducting proof of Task Complexity variable, as well as Orgasization Commitment with expected indicator is the improvement of professionalism and decreasing of cases of code violation. The sample used was 133 junior auditors in Public Accounting Firm registered in IAPI East Java Compartment spread in 3 cities namely Surabaya, Sidoarjo and Malang. The research instrument is a questionnaire distributed directly to the respondents who were sampled in the study. By using Partial Least Square testing, the resulting model that the complexity of the task has a significant positive effect on audit performance, organizational commitment has no effect on audit performance.

Locus Of Control Sebagai Varibel Moderasi Hubungan Kompleksitas Tugas Dan Kinerja Auiditor

Research Objectives to prove the influence of the complexity of the tasks faced by the Auditor on performance in carrying out duties as an Auditor. The complexity of tasks related to various problems in the company requires locus of control from internal and external to maintain independence and competence.The first auditor performance case occurred in 2002 with the disclosure of the Enron case involving the KAP in the big five, Athur Anderson. In 2008 the Telkom case affected the closure of KAP Edy Priyanto, and there were still many other cases which were violations of the accountant's code of ethics.This research is in the form of quantitative, with proof of the complexity of the task and locus of control on the performance of the auditor. Sample 46 Junior auditors from several KAPs in Surabaya, using the Partial Least Square test, the result that the complexity of the task affects the performance of the Auditor and the interaction of the complexity of the task with locus of control does not affect the performance of the Auditor.

Factors Influencing Professional Judgment of Auditors in Malaysia

The purpose of this study was to examine the factors influencing professional judgment of Malaysian auditors. A questionnaire was used to measure the level of professional judgment and factors influencing the judgment such as gender, knowledge, position level, experience and also firm size. The multiple regression results showed that the position level and experience to be statistically significant in determining the level of professional judgment of auditors. Gender, knowledge and firm size have no significant relationship with professional judgment. As for gender, past research has shown mixed results and this study proves that there is no gender differences among Malaysian auditors in terms of their professional judgment. Even though past research has shown that knowledge has a positive relationship with professional judgment, this study finds no significant relationship between the two variables. With regard to firm size, this study finds similar results of prior study that there is no significant relationship between firm size and judgment. In terms of the practical implications, this study provides insights into significant factors that influence professional judgment of Malaysian auditors. Besides, the management of audit firms can place emphasis on establishing training to their employees especially for the junior staff. Exposing junior auditors at the early stage might improve their professional judgment when facing with complexities of assignments.

PENGARUH TEKANAN WAKTU AUDIT DAN LOCUS OF CONTROL TERHADAP TINDAKAN YANG MENURUNKAN KUALITAS AUDIT

The objective of this study is to investigate the effect of audit time pressure and locus of control on reduced audit quality. Based on the literature review, it was hypothesized that audit time pressure and locus of control have a significant effect on reduced audit quality. This research was done on auditors of audit firms listing Bapepam-Lembaga Keuangan (LK). Data was collected through questionnaires. The respondents of this research are junior auditors, senior, supervisor, and manager. Data were analyzed using path analysis for testing hypothesis. The results show that audit time pressure and locus of control have a significant effect on reduced audit quality. Spesifically, this study indicate that auditors who experience greater level of time pressure are more likely to commit reduced audit quality. Under conditions of excessive time pressure, auditors failed to adequately use all relevant decision cues. The results also indicate that auditors who are more likely to engage in reduced audit quality tend to possess an external locus of control. This indicate that the personality characteristics (instance, locus of control) play a role increasing audit quality. Since an external locus of control is associated with higher acceptance of audit quality reduction behaviors, audit firms may need to tailor their professional development programs and management practices to reflect an auditor’s locus of control.

Responsiveness of Auditors to the Audit Risk Standards: Unique Evidence from Big 4 Audit Firms

We examine the effect of changes in audit risk standards on the conduct of financial statement audits in a European setting. We investigate this by analysing the audit hours and audit fees for clients of Big 4 audit firms in Finland in 1996 and 2010. Our results show that audit firms became more sensitive to clients’ business risk due to the introduction of the new audit risk standards, with more audit hours allocated to owner-managed companies in 2010 than in 1996, and fewer audit hours allocated to low-risk clients in 2010 than in 1996. Also, the labour mix in the audit team changed for owner-managed companies, with a greater work load carried by junior auditors in 2010 than in 1996. Regarding the price of audit, we find an increase in audit fees for clients with high business risk, while audit fees remained at roughly the same level for low-risk clients. These findings should be of interest to the auditing profession and those involved in the development of auditing regulations.

Ketepatan pemberian opini auditor: Survey terhadap auditor di Yogyakarta

This study aims to examine the accuracy of giving opinion by the auditor. Factors that are expected to have an effect on the accuracy of the auditor's opinion are professional skepticism, experience, audit situation, expertise and workload. This research was conducted by survey method using questionnaires distributed to auditors working in the public accounting firm in Yogyakarta. The sampling technique using a random sampling. The results showed that the variables of professional skepticism and audit situation has significant positive effect on the accuracy of giving opinions by the auditor. There are three variables that do not have a significant effect on the accuracy of giving the auditor's opinion in this study, namely the experience, expertise, and workload. This is because the auditors who were respondents in this study are mostly junior auditor, with an educational background S1 is still a bit of experience, expertise and workload.

The Audit Court Society: An Eliasian Framework for the Analysis of the Up-or-out System in PSFs

This paper studies the “up-or-out” system that rules career management in Big 4 audit firms. In its approach to socialization of auditors, the existing literature has so far rather highlighted a top-down internalization Applying an Eliasian theoretical framework to the analysis of the up-or-out system in audit firms of patterns of behavior and social roles by junior auditors. We consider a more competitive and horizontal dimension of socialization in order to understand how auditors eventually succeed by surviving the up-or- out system. To this end, we use the concepts of figuration and interdependencies, as theorized by Norbert Elias. Based on participant observation and interviews, our research reveals that, in Big 4 firms, individuals are interdependent, as allies as well as adversaries, and that success in the

Responsiveness of Auditors to the Audit Risk Standards: Unique Evidence from Big 4 Audit Firms

We examine the effect of changes in audit risk standards on the conduct of financial statement audits in a European setting. We investigate this by analysing the audit hours and audit fees for clients of Big 4 audit firms in Finland in 1996 and 2010. Our results show that audit firms became more sensitive to clients’ business risk due to the introduction of the new audit risk standards, with more audit hours allocated to owner-managed companies in 2010 than in 1996, and fewer audit hours allocated to low-risk clients in 2010 than in 1996. Also, the labour mix in the audit team changed for owner-managed companies, with a greater work load carried by junior auditors in 2010 than in 1996. Regarding the price of audit, we find an increase in audit fees for clients with high business risk while audit fees remained at roughly the same level for low-risk clients. These findings should be of interest to the auditing profession and those involved in the development of auditing regulations.