Public Accounting Firms Research Articles

Future auditing: Machine learning's impact on audit capacity stress - young auditors' perceptions using UTAUT

Advancing technologies have potential to revolutionize the future of auditing. This study investigates the impact of machine learning adoption on audit capacity stress among Indonesian external auditors. A survey approach was used to collect data from 100 auditors working in public accounting firms. The Unified Theory of Acceptance and Use of Technology (UTAUT) model was employed to assess factors influencing auditors' perceptions of machine learning usage. The result that comprises of young auditors to be the most respondents show performance expectancy, effort expectancy, and social influence are insignificant towards audit capacity stress. However, facilitating conditions were found to have a significant impact on audit capacity stress, suggesting that infrastructure and resource availability are crucial for young auditors' acceptance of machine learning and its audit capacity stress-reducing effects. Thus, Indonesian auditor requires additional facilitating support to alleviate audit capacity stress. These findings contribute to the understanding of technology adoption and audit capacity stress in the evolving future audit profession.

Pengaruh Eksternal Auditor, Komisaris Independen, dan Dewan Pengawas Syariah Terhadap Sustainable Finance Pada Bank Umum Syariah di Indonesia

The research evaluates external auditors based on their association with the Big Four Public Accounting Firms, measures independent commissioners by their proportion on the board, and counts Sharia supervisory board members as reported in annual disclosures. Using secondary data from annual and sustainability reports, the study employs multiple linear regression analysis.Results indicate that only independent commissioners have a significant impact on Sustainable Finance, while external auditors and the Sharia supervisory board do not. This highlights the importance of independent commissioners in promoting Sustainable Finance, suggesting that regulators and banks should enhance their roles to strengthen commitments to these initiatives

Factors Influencing Intention in Implementing an External Whistleblowing System

This studies goals to research and decide the simultaneous and partial affect of Instrumental, Affective, Self-Efficacy, Perceived Controllability, and Independence Commitment on External Whistleblowing Intention with Perceived Organizational Support as a moderating variable. This studies makes use of quantitative research with purposive sampling methods. This research combines internal factors in the form of personality and external factors in the form of the organizational environment as a basis for implementing external whistleblowing, to find out which factors are able to encourage whistleblowers to implement external whistleblowing. This is a primary data originating from questionnaire respondents. The questionnaire was made in electronic form, using Google Form media. Respondent data came from Senior Auditors and Supervisory Auditors of Public Accounting Firms (KAP) in Indonesia, totaling 100 respondents. SmartPLS version 3 was used for analysis. Results indicate that Instrumental variable has a positive effect on External Whistleblowing Intention. Affective has no effect on External Whistleblowing Intention. Self-Efficacy has no effect on External Whistleblowing Intention. Perceived Controllability has no effect on External Whistleblowing Intention. Independence Commitment has no effect on External Whistleblowing Intention. Perceived Controllability does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Affective does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Independence Commitment does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Self-Efficacy does not moderated by Perceived Organizational Support on External Whistleblowing Intention. Instrumental does not moderated by Perceived Organizational Support on External Whistleblowing Intention. This research has limitations. The data was obtained from an instrument based on answers based on the respondents' perceptions and experiences. Research data can be biased, because if the respondent's answers are different from their perceptions and experiences of the actual situation, it can reduce the accuracy of the information from this research.

The Impact Of Audit Fee, Size Of Public Accounting Firm, Company Size, And Leverage On The Communication Of Key Audit Matters (Implementation Of The First Year Of KAMs Adoption In Independent Auditors' Reports In Indonesia)

Auditing standard 701 "Communicating Key Audit Matters (KAMs) in the Independent Auditor's Report" will be implemented in Indonesia in 2022. The communication of KAMs aims to increase the transparency of financial statements for users. This study examines the effect of audit fees, Size of public accounting firm, company size and leverage on the communication of Key Audit Matters (KAMs). The research population is companies that are listed on the Indonesia Stock Exchange and report audited financial statements for the fiscal year 2022. The sample was selected using purposive sampling method. The research data was processed using the Multiple Linear Regression method using IBM SPSS Statistics software ver. 25. This study proves that audit fees (sig 0.000 < 0.05) and Size of public accounting firm (sig 0.000 < 0.05) have a positive and significant effect on communicating KAMs. While company size (0.188 > 0.05) leverage (0.378 > 0.05) has no significant effect on communicating KAMs. Based on the results of the study, it is hoped that companies can consider an adequate audit fee budget and choose a Public accounting firm whose competence is in accordance with the conditions of the company to be able to increase the communication of KAMs. Thus, companies can increase investor and other stakeholder confidence through the communication of KAMs as an effort to demonstrate commitment to transparency and good corporate governanc

Fraud Detection: Professional Skepticism and Quality Control System

AbstractFraud is defined as an intentional violation of the law which causes harm to others. This study aims to determine the influence of Professional Skepticism and Quality Control Systems on Fraud Detection. The method used is descriptive and verificative analysis with a quantitative approach to 40 auditors in 13 Bandung City Public Accounting Firms. Primary data was collected through survey method data collection techniques through questionnaires. The data analysis method uses multiple linear regression analysis, which tests using SPSS 23.0 software for Windows. The results of this study show that Professional Skepticism and Quality Control Systems affect Fraud Detection. This research contributes as an evaluative tool for auditors to increase professional skepticism by implementing a quality control system in their assignments. The novelty of thisresearch is that auditors require professional scepticism and good quality control systems to detect fraud quickly and accurately. Keywords:Professional Skepticism, Quality Control System, Fraud Detection

Pengaruh Disiplin Kerja dan Lingkungan Kerja Fisik terhadap Kinerja Karyawan pada Kantor Akuntan Publik Jamaludin, Ardi, Sukimto & Rekan Jakarta Pusat

The purpose of this study was to determine Work Discipline, and Physical Work Environment on employee performance at the Jamaludin, Ardi, Sukimto & Rekan Public Accounting Firm, Central Jakarta. The method used is quantitative. Sampling technique used is saturated with a sample of 50 respondents, the test used is validity test, reliability test, classical assumption test, linear regression test, determination coefficient test, hypothesis test (t test and f test). The results of this study simultaneously have a significant effect on employee performance with regression Y = 1.672 + 0.622 X1 + 0.342 X2 , the correlation coefficient value of 0.861 means that simultaneously has a very strong level of relationship where the value is in the interval 0.80 - 1000. While the coefficient of determination (R Square) is 0.741 (74.1%). Based on this value, it shows that the percentage between the work discipline variable (X1), and the physical work environment (X2) affects employee performance (Y) by 74.1% while the rest (100%-74.1%) = 25.9% is influenced by other variables that are not included. For the hypothesis value, the value of Fcount> Ftabel or (10,357> 2,011). This is also reinforced by sig <0.05 or (0.000 <0.05) thus Ho is rejected and Ha is accepted, this shows that there is a simultaneous significant influence between the variables of Work Discipline (X1) and Physical Work Environment (X2) on Employee Performance (Y) at the Public Accounting Firm Jamaludin, Ardi, Sukimto & Partners Central Jakarta.

Ethical values of public accountant: a critical perspective of rational-religious of Hamka

Purpose - This study explores business practices in public accounting firms, particularly in East Java, along with ethical issues raised by the practices.Method - This study applied a qualitative approach in which data were collected through in-depth interviews with 12 public accountants from various public accounting firms. Then, the data were analysed based on a rational-religious perspective as suggested by Buya Hamka.Result - The findings of this study indicated many ethical concerns in public accountant practices, despite they comprehend about ethical standards contained in the professional code of ethics. All those problems were actuated by the financial fulfillment of the public accountant, which deviated from ethical values as signified by Hamka.Implication - Public accountants should implement Hamka’s virtues in professional practices as a reflection of Islamic principles.Originality - This research is the first study that used the virtues of Buya Hamka in public accountant practices.

Workplace Spirituality as a Moderator of the Influence of Task Complexity, Audit Experience and Audit Competence on Auditor Performance (Case Study of Public Accounting Firm of Bali Province)

Auditor performance is the result of work achieved by an auditor in carrying out his duties in accordance with the responsibilities given. This research was conducted at Public Accounting Firms (KAP) in Bali Province based on the Directory of Public Accounting Firms and Public Accountants published by the Indonesian Institute of Public Accountants (IAPI) in 2023. The subject to be studied is an auditor who is in a Public Accounting Firm (KAP) in Bali Province. The population in this study is all auditors in the Public Accounting Firm (KAP) of Bali Province which totals 148 people. The number of auditors was 148 people obtained by asking directly to the Public Accounting Firm (KAP) in Bali Province. The sample determination method used in this study is saturated sampling. The data collection method used in this study is a survey method with a questionnaire technique. The respondents' statement answers were measured using a 5-point likert scale. The data analysis in this study uses the Moderated Regression Analysis (MRA) approach. Moderated Regression Analysis (MRA) is a data analysis method that is devoted to analyzing moderation variables with the help of the Stata application. The results of this study prove that the complexity of tasks has a negative effect on the performance of auditors in Public Accounting Firms in Bali Province. Audit experience has a positive effect on the performance of auditors in Public Accounting Firms in Bali Province. Audit competence has a positive effect on the performance of auditors in Public Accounting Firms in the Province of Bali. In addition, this study also proves that Workplace Spirituality strengthens the negative relationship between task complexity and auditor performance in Public Accounting Firms in Bali Province. Workplace spirituality strengthens the positive relationship of audit experience to auditor performance in Public Accounting Firms in Bali Province. Workplace spirituality strengthens the positive relationship between audit competence and auditor performance in Public Accounting Firms in Bali Province.

Pengaruh Solvabilitas, Kompleksitas Operasi Perusahaan, Kontinjensi, Opini Audit, dan Reputasi Kantor Akuntan Publik (KAP) Terhadap Waktu Penyelesaian Audit

This study aims to analyze the influence of solvency, complexity of company operations, contingency, audit opinion, and the reputation of Public Accounting Firms (KAP) on the audit completion time in non-primary consumer goods sector companies listed on the Indonesia Stock Exchange (BEI) during the period 2019-2022. The research method used is quantitative with secondary data analysis obtained from company financial statements. The research sample is taken using purposive sampling based on specific criteria. The results show that solvency, complexity of company operations, contingency, and KAP reputation do not affect audit completion time, while audit opinion has a negative effect, where companies that receive an unqualified opinion tend to complete the audit more quickly.

Locus Of Control, Transformative Leadership, Self Efficacy, Professional Commitment On The Ability To Detect Fraud. Auditor's Experience As Moderating Variables

This research aims to investigate the influence of Locus of Control, Transformative Leadership, Self Efficacy, and Professional Commitment on the Ability to Detect Fraud with the audit experience as a moderator. The population in this research are auditors who work at Public Accounting Firms in DKI Jakarta. The sampling method used was an unknowns sample because the population size was uncertain, and the researcher could not obtain information regarding the number of accountants working at the Public Accounting Firm in DKI Jakarta. The number of respondents obtained for this research was 155 respondents. In this research, the analytical methods used are descriptive statistics, data feasibility testing, classical assumption testing, multiple linear regression analysis and hypothesis testing. Test results prove that Locus of Control (LoC) has a positive effect on the ability to detect fraud, transformational leadership and professional commitment have no effect on the ability to detect fraud. Self-efficacy has a negative effect on the ability to detect fraud. Auditor experience moderates the influence of Locus of Control and Self Efficacy on the ability to detect fraud. Auditor experience does not moderate the influence of transformative leadership and professional commitment on the ability to detect fraud.

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.

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.

Pengaruh Pengalaman Auditor Terhadap Kualitas Audit Dimoderasi Penerapan Teknologi Informasi

This study aims to examine the effect of auditor experience on audit quality moderated by the application of information technology. The subjects of this study were auditors from public accounting firms (KAP) holding registered CPAs in Indonesia listed in the 2023 IAPI Directory, with the object of research on competence, auditor experience, audit quality, and application of information technology. The population in this study amounted to 3276 lists of CPA holders in Indonesia listed in the 2023 IAPI Directory. Determination of the sample in this study using Probability sampling technique by selecting simple random sampling technique. The number of samples needed for this study were 97 respondents. The type of data used in this study is primary data. 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 auditor experience has a significant effect on audit quality. The application of information technology cannot moderate the effect of auditor experience on audit quality.

Pengaruh Audit Tenure, Rotasi Audit, Dan Fee Audit Terhadap Kualitas Audit Pada Perusahaan Idx80 Yang Terdaftar Di Bursa Efek Indonesia Tahun 2021-2023

The incident of poor audit quality explains that the auditor is fully responsible for the entire audit process until the final audit results are obtained. This study aims to partially examine the effect of audit tenure, audit rotation and audit fees on audit quality. The data used is secondary data obtained from consolidated annual reports and audited financial reports in IDX80 companies for 2021-2023. The population in this study were IDX80 companies listed on the Indonesia Stock Exchange in 2021-2023 with purposive sampling technique for sampling so that 47 sample companies were obtained with 141 observed financial reports. The analysis technique used is binary logistic regression analysis with associative survey quantitative methods. The results obtained show that audit tenure and audit rotation partially have a positive but not significant effect on audit quality, while audit fees have a significant positive effect on audit quality. The contribution of this research is that audit quality measured using the organization and governance of Public Accounting Firms in accordance with the Decree of the Executive Board of the Indonesian Institute of Certified Public Accountants No. 4 of 2018 concerning Guidelines for Audit Quality Indicators at Public Accounting Firms.

WHAT AUDIT FEATURES IMPACT VALUE RELEVANCE OF ACCOUNTING INFORMATION?

Research Purposes. The objective of this research is to ascertain how audit quality affects the value and relevancy of accounting data, where audit quality is proxied by audit company size, audit partner gender, audit fees, audit reporting delays, and auditor opinion. Research Methods The study examining the relationship between variables using a fixed-effects model focuses on 780 non-financial corporations registered on the Indonesia Stock Exchange between 2020 and 2021, chosen through non-probability-purposive-judgment sampling techniques. Research Results and Findings. The study's conclusions indicate that while audit fees and latency in reporting can decrease the value relevance of accounting information, public accounting firms associated with the Big Four and the presence of female audit partners can enhance it. Additionally, the auditor's opinion section yields some intriguing results, as it increases the relevance of book value while decreasing that of profit value.

Public Accounting Firm's Quality Control Standard In Risk-Based Perspective: Is It Important?

Pandemic Covid 19 has impacted every business operation worldwide and increased business risk. Auditors' responsibility to provide audit quality has become more prevalent. This study aims to get empirical evidence of auditor experience, auditor industry specialisation, and audit risk on audit quality during the COVID-19 pandemic. The research methods used quantitative with a survey approach; data gathered by a survey of Auditor. The result finds that during turbulent economic situations, the need for auditor experience and auditor's industry specialists has increased to mitigate the audit risk. Auditor experience and auditor industry specialists were needed to promote audit quality with low audit risk. The study has proved that auditor experience, industry specialisation, and audit risk impact audit quality. Assessing the auditor and public accounting firm using quality control standards from risk-based perspectives is urgently required. Other studies may investigate the issues using qualitative methods to get a deeper understanding.

Audit Report Lag With the Public Accounting Firm’s Reputation as Moderation

Audit Report Lag With the Public Accounting Firm’s Reputation as Moderation

The Influence of Operating Profit and Loss and the Size of The Public Accounting Firm on Audit Delay

This research aims to determine and analyze the influence of Operating Profit and Loss and the Size of the Public Accounting Firm (KAP) partially on Audit Delay. The influence of Operating Profit and Loss and Size of the Public Accounting Firm (KAP) simultaneously on Audit Delay in companies listed on IDX-MES BUMN 17 Period 2018-2022. This research uses a descriptive method with a quantitative approach. The statistical test tool uses the help of the IBM SPSS Statistics 27 version program. Operating Profit and Loss partially influence Audit Delay with a value of count 3,832 > table 2,018. The size of the Public Accounting Firm partially has no effect with a value of count -1.605 < table 2.018. Operating Profit and Loss and the Size of the Public Accounting Firm simultaneously influence Audit Delay with a value of Fcount 7.391 > Ftable 3.214. The R Square value obtained was 26.0%; the remaining 74.0% was influenced by other factors not examined in this research. Thus, the relationship between the variables in this study has a trim level of relationship. Companies should pay more attention to the timeliness of submitting financial reports, considering the importance of economic reports in decision-making. The manager evaluates the performance of each division to minimize delays in submitting financial reports. Future researchers can add independent variables and observation periods and expand the research object. Researchers want to know the extent to which these two variables play a role in influencing Audit Delay, especially in companies listed on IDX-MES BUMN 17, and can provide further information.

Pengaruh Audit Tenure, Kepemilikan Manajerial, dan Ukuran Perusahaan terhadap Integritas Laporan Keuangan

Purpose: This study examined the impact of audit tenure, managerial ownership, and company size on the integrity of financial statements. Methodology: The sample was selected using purposive sampling, resulting in 29 companies and 77 data points from transportation and logistics companies listed on the Indonesia Stock Exchange during the period 2020-2022. Secondary data from the annual reports were analyzed using multiple linear regression. Results: Company size affects the integrity of financial statements, whereas audit tenure and managerial ownership do not. Limitations: The study is limited by measuring audit tenure as the number of years a Public Accounting Firm has engaged with a client, going back up to six years. Additionally, only one measurement tool–accounting conservatism–was used. Contribution: The findings are expected to enhance the understanding of financial statement integrity for both internal users, such as management, and external users, such as creditors and investors, aiding in making informed decisions. Furthermore, this study contributes to the literature by expanding the determinants of financial statement integrity in transportation and logistics companies.

Overloaded and overwhelmed: Weakened partner aspirations of women public accountants during the COVID‐19 pandemic

AbstractDespite years of initiatives to improve gender equity in public accounting firms, women continue to be underrepresented at the partner level. Supporting women's aspirations to become partner is important to ensure there are more women in the pipeline of potential partners. However, we argue that challenges during the COVID‐19 pandemic are likely to have negative downstream effects on accounting firms' efforts to improve female partner representation. Therefore, using a survey of 192 certified public accountants (CPAs), we develop and test a theoretical model that examines changes in women's partner aspirations during the COVID‐19 pandemic. Using the conservation of resources (COR) theory, we predict that women experienced disproportionately higher role overload during the pandemic compared to men. We also rely upon COR theory to predict that higher levels of role overload will be associated with weakened partner‐track motivations (i.e., less value placed on the advantages of the partner level and lower willingness to make the sacrifices necessary to pursue the partner level) and weakened partner aspirations. Consequently, we expect that women public accountants experienced weakened partner aspirations through higher role overload during the pandemic. Results support our predictions as we find that women experienced higher levels of role overload, which are associated with weakened partner‐track motivations, which in turn are associated with weakened partner aspirations. In sum, our results suggest that the COVID‐19 pandemic exacerbated pre‐pandemic gender equity challenges within public accounting firms. Fortunately, we also find that higher levels of supervisor support and coworker support help limit role overload and mitigate declines in partner aspirations. We discuss several insights that firms can use to mitigate post‐pandemic declines in women's partner aspirations.