Public Accounting Firms Research Articles

Determinant Factors of Auditor’s Ability to Detect Fraud: Auditor Proffesional Scepticism as Moderation

With the moderating effect of auditor professional distrust in mind, this study attempts to investigate the relationship between three key factors fraud audit training, auditor competence, and auditor experience and the auditor's capacity to identify fraud. This study utilized data collected from 117 auditors who work in Public Accounting Firms located in the center of Java, Indonesia. This study used the Partial Least Squares (PLS) method to address the research hypothesis. The study's findings demonstrate that an auditor's expertise and training in fraud auditing have a direct, beneficial impact on their capacity to spot fraud. Nevertheless, the auditor's expertise has been demonstrated to have no impact on their capacity to identify fraud. The results of this study also managed to demonstrate how an auditor's professional skepticism enhances the impact of their expertise, experience, and fraud audit training on their capacity to identify fraud.

Audit Partner Characteristics and Their Impacts on Audit Quality: Evidence from around the World

Public company audits are not homogenous. Varying audit partner attributes, including gender, age, location, and expertise, play important roles in explaining audit outcome disparities. The extant literature underscores the influence of firm-level and office-level differences, in areas such as size, culture, and industry expertise, in shaping audit outcomes. Commonwealth countries, such as the U.K., Australia, New Zealand, and Continental European countries, along with Asian economic entities, mandate the disclosure of audit partner names. Consequently, significant research efforts have been devoted to investigating the impact of audit partner characteristics on audit outcomes in these jurisdictions. With the adoption of Public Company Accounting Oversight Board (PCAOB) Rule 3211, mandating disclosure of audit engagement partner details for U.S.-registered public accounting firms on Form AP, there has been a surge in U.S. firm research exploring the significance of audit partner characteristics on audit outcomes in recent years. This paper outlines research that considers audit partner attributes’ influence on audit partner selection and audit quality across different economic entities. This entry contributes by synthesizing findings from recent research across diverse economic contexts, including the recently available insights from U.S.-based audits. The analysis of this entry not only provides insights into the current state of audit partner research but also delineates avenues for future research on this topic.

KUALITAS PROSES AUDIT: TASK COMPLEXITY DAN LOCUS OF CONTROL DENGAN TABK SEBAGAI MODERASI

The COVID-19 pandemic has driven significant transformations in audit practices, particularly through the shift towards remote auditing. The focus of this research is to examine the influence of Task Complexity and Locus of Control on Audit Process Quality with Computer-Assisted Audit Techniques (CAAT) as a moderating variable. This study employs a quantitative research method with primary data collection through questionnaires and Likert scales. The research sample consists of 100 auditors working in Public Accounting Firms in DKI Jakarta, selected using purposive sampling method. Data analysis is conducted using Structural Equation Modeling (SEM) through the SmartPLS 4.0 program with a significance level of 0.05. Findings indicate that Task Complexity has a significant negative impact on Audit Process Quality, while Internal Locus of Control has a significant positive influence. Conversely, External Locus of Control does not significantly affect Audit Process Quality. CAAT as a moderating variable weakens the relationship between Task Complexity and Audit Process Quality. However, CAAT does not strengthen the relationship between Internal Locus of Control and Audit Process Quality, and it does not influence the relationship between External Locus of Control and Audit Process Quality. The implications of this research lie in a more comprehensive understanding of components influencing audit process quality, contributing to the enhancement of audit practices in the digital era.

ChatGPT is Ready for the Profession—But is the Profession Ready for ChatGPT?

SYNOPSIS We investigate the accounting profession’s readiness for ChatGPT through a survey study of 136 practitioners and an interview with two experts. We find that accounting professionals are inexperienced with ChatGPT and use ChatGPT mostly for administrative tasks. However, they plan to use ChatGPT for more value-added tasks in the future. Leveraging a modified technology acceptance model (TAM), we find that perceived usefulness, perceived ease of use, and personal innovativeness are three factors encouraging ChatGPT adoption. However, perceived risk hinders adoption, whereas trust does not impact the adoption. We also find that organizational leaders have a stronger intention to use ChatGPT than lower-level employees. Compared with practitioners from other types of organizations, practitioners from public accounting firms exhibit stronger personal innovativeness toward using ChatGPT but also experience less positive attitude toward ChatGPT. We also provide an “interim scorecard” and other actionable insights that are of interest to both practitioners and academics. Data Availability: Contact the first author. JEL Classifications: M40; M41.

Determinan Kualitas Audit dimoderasi oleh Komite Audit

This study aims to analyze the factors that influence audit quality variables, especially audit tenure and the reputation of the Public Accounting Firm. In addition, this study examines whether the audit committee can strengthen or weaken the improvement of audit quality in the company. This study uses quantitative methods, and the data source is secondary data. The population of this study consists of 30 IDX companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2021. The population and sample in this study are IDX 30 companies listed on the IDX in the 2016-2021 period. The sample was selected using the purposive sampling method. There are 16 companies listed on the Indonesia Stock Exchange in IDX, 30 companies during 2016-2021 that match the researcher's criteria. The analytical methods used in this study include descriptive statistical analysis, logistic regression analysis, and moderation hypothesis testing using moderated regression analysis. This study found that audit tenure has no impact on audit quality. However, KAP size was found to affect audit quality significantly. The Audit Committee is unable to moderate the effect of Audit Tenure on Audit Quality; The Audit Committee is unable to moderate the effect of KAP size on audit quality.

Pengaruh Time Budget Pressure dan Risiko Audit Terhadap Penghentian Prematur Atas Prosedur Audit Pada Kantor Akuntan Publik di Kota Makassar

The purpose of this study is to determine the effect of Time Budget Pressure and Audit Risk on Premature Termination of Audit Procedures at Public Accounting Firms in Makassar City. Data collection uses primary data obtained from questionnaires. Determination of the sample using the saturated sample method, so that the sample in this study were 40 respondents. The results of the questionnaire have been tested for validity and reliability, and have also been tested for classic assumptions in the form of normality assumptions, heteroscedasticity assumptions, and multicollinearity assumptions. Methods of data analysis using multiple regression analysis. The research results show that Time Budget Pressure has a positive and significant effect on Premature Termination of Audit Procedures and Audit Risk does not have a positive and significant effect on Premature Termination of Audit Procedures.

MODERASI AUDITOR PROFESSIONAL SCEPTICISMPADA KOMPLEKSITAS TUGAS AUDIT, LOCUS OF CONTROLDAN KUALITAS AUDIT

Audit quality is the result achieved from financial statements that are presented fairly, all material matters or provide a true picture according to the financial reporting framework in order to increase the trust of users of financial statements. The purpose of this study is to investigate whether the complexity of the audit task, and locus of control can affect audit quality and auditor professional scepticism can moderate the effect of audit task complexity, and locus of control on audit quality. Type of research is quantitative research, in this study the data collection method is the distribution of questionnaires via g-form. The data collected in this study are the results of questionnaires distributed to auditors at public accounting firms in Indonesia. The results of this study audit task complexity and locus of control have a positive effect on audit quality, auditor professional scepticism cannot moderate the effect of audit task complexity and locus of control on audit quality.Keyword: Audit Quality, Audit Task Complexity, Locus of Control, and AuditorProfessional Scepticism.

AUDITORS' PROFESSIONAL SKEPTISM AND ABILITY TO DETECT FRAUD IN PUBLIC ACCOUNTING FIRM IN MEDAN CITY

This research is an empirical study regarding professional skepticism and the ability to detect fraud. This research aims to examine the influence of professional skepticism on the ability to detect fraud.This research was conducted using a survey method at the Public Accounting Firm in the city of Medan. The unit of analysis is the auditors. Simple linear regression analysis with the help of SPSS Statistics 20 was used to analyze the data.The findings of this research indicate that professional skepticism has a significant positive effect on the ability to detect fraud. This finding explains that the higher the professional skepticism of auditor the higher the auditor's ability to find fraud so that the possibility of fraud will be smaller.

The Influence of Competency, Professionalism and Auditor Independence on Audit Quality with Integrity as a Moderation Variable at DKI Jakarta Public Accounting Firm (Empirical Study at The Public Accounting Office of DKI Jakarta Province)

The Influence of Competency, Professionalism and Auditor Independence on Audit Quality with Integrity as a Moderation Variable at DKI Jakarta Public Accounting Firm (Empirical Study at The Public Accounting Office of DKI Jakarta Province)

Pengaruh Akuntabilitas, Independensi, dan Pengalaman Kerja Terhadap Kualitas Audit

This research aims to examine the influence of accountability, independency, and work experience on audit quality at Public Accounting Firms in Padang City. Primary data was obtained from questionnaires filled out by respondents. The sample used in this research was the auditors of the Public Accounting Firm in Padang City, totaling 60 people. The statistical data analysis technique used in this research in multiple regression analysis. The research results show that accountability has a significant positive effect on audit quality at the Public Accounting Firm in Padang City. Meanwhile, independency and work experience have no effect on audit quality at the Public Accounting Firm in Padang City. The implication of this research is in the form of relevant information that companies and auditors should maintain credibility in preparing financial reports so as not to harm the entity, auditor and third parties. Therefore, correct and precise information is needed from the results of an audit of a client's financial statements in a company, this will determine the decisions that will be taken, such decisions as granting credit, investment, acquisitions, and so on. This audited financial report will be provided to the party who requires the results, where it will be used for making decisions in the company.

The Effect of Public Accounting Firm Size, Managerial Ownership, and Company Size on Financial Statement Integrity

Financial statements must be presented accurately and unbiasedly so that they can be used as a basis for decision making by stakeholders. Therefore, financial statements must have high integrity. Based on the global context and differences in the results of previous studies, this study aims to replicate previous research using the latest data. This study has a specific objective to determine whether the size of the Public Accounting Firm, managerial ownership and company size, can affect the integrity of financial statements in consumer goods companies during 2020-2022. This study uses multiple regression analysis, with descriptive statistical testing. Based on empirical evidence, the results show that the size of the public accounting firm and company size have a positive effect on the integrity of financial statements. Meanwhile, managerial ownership has a negative effect on the integrity of financial statements.

The Influence of Audit Quality and Auditor Experience on the Auditor's Fraud Assessment Ability

Several companies use various methods to commit fraud in financial reporting in order to get a good performance assessment. The case of alleged manipulation of financial reports that has occurred is the case of PT Envy Technologies Indonesia Tbk. The issuer is suspected of committing fraud after 2 years of being registered as a public company on the IDX since July 9 2019. This study aims to determine the effect of audit quality and auditor experience in detecting fraud that occurs (fraud). The study employs quantitative methods with the assistance of SPSS IBM 20. The population consists of auditors working at Public Accounting Firms in the Jakarta and Bekasi regions, selected using a purposive sampling method based on specific criteria. Data collected by using questionnaire sharing by google form and immediately sharing. Based on the highest variable indicators, a total of 145 auditors were selected as respondents. The study's findings indicate that the audit quality variable has a significantly positive impact on the ability to detect fraud. This is attributed to the fact that higher auditor competence leads to faster and more accurate fraud detection. Additionally, the auditor's experience variable also positively and significantly influences the ability to detect fraud, suggesting that the longer an auditor's work experience with diverse levels of workload complexity, the better their capability to identify fraud in financial statements.

The Influence of the Use of Audit Technology and Auditor Competency on Audit Quality in Public Accounting Firms

The Influence of the Use of Audit Technology and Auditor Competency on Audit Quality in Public Accounting Firms

Mission Statements of Public Accounting Firms: Antecedents and Consequences of Professional Vs. Commercial Orientations

Mission Statements of Public Accounting Firms: Antecedents and Consequences of Professional Vs. Commercial Orientations

Examining Factors Influencing Adoption of Metaverse Technology in Audit Processes: Evidence from Public Accounting Firms in Indonesia

Examining Factors Influencing Adoption of Metaverse Technology in Audit Processes: Evidence from Public Accounting Firms in Indonesia

PENGARUH PROSEDUR, FEE DAN PROFESIONALISME AUDIT TERHADAP KUALITAS AUDIT DENGAN REMOTE AUDIT SEBAGAI VARIABEL MODERASI STUDI EMPIRIS PADA KANTOR AKUNTAN PUBLIK DI JAKARTA SELATAN

This study aims to determine Procedures, Audit Fees and Professionalism on Audit Quality with Remote Audit Moderating Variables (Study at Public Accounting Firm in South Jakarta). This research method is included in quantitative research with the type of primary data source and uses attribution theory and positive accounting theory. The population in this study were public accounting firms in the South Jakarta area and the samples in this study were partners, supervisors, managers and seniors who worked at public accounting firms in the South Jakarta area. The number of samples in this study were 92 respondents. Data analysis in this study used the SmartPLS (Partial Least Square) Version 4.0 data analysis method. Procedures have a significant effect on audit quality, audit fees have a significant effect on audit quality, and professionalism has a significant effect on audit quality. Meanwhile, remote audit has no significant effect on moderating the relationship between procedures and audit quality, remote audit is unable to moderate the relationship between audit fees and audit quality. In addition, remote audit is able to moderate the relationship between professionalism and audit quality.

Pengaruh Accounting Disruption Pada Kualitas Audit Dimediasi Beban Kerja Audit

This study aims to prove the effect of accounting disruption on audit quality with audit workload as an intervening variable at the Public Accounting Firm in Malang City. This research method uses quantitative research methods. This study uses primary data with data collection techniques through distributing questionnaires to 56 research samples using the convenience sampling method . The results of this study indicate that accounting disruption has a positive effect on audit quality directly and has a negative effect on audit workload. Audit workload has a negative effect on audit quality and there is an effect of accounting disruption on audit quality through mediation of audit workload. Changes in information technology in the field of corporate accounting make it easier for auditors to track audit evidence so as to improve audit quality.

Kualitas Audit: Kajian dari Perspektif Kompetensi, Independensi dan Etika Pada KAP Jojo Sunarjo dan Rekan Cabang Pekanbaru

This study aims to determine the importance of the role of competence, independence, ethics on audit quality at KAP Jojo Sunarjo and Partners Pekanbaru Branch. The research method used is a quantitative method with a descriptive approach. The data used in collecting data is a questionnaire. The results show that competence, independence, and ethics play a role in improving audit quality at the Jojo Sunarjo and Partners Public Accounting Firm, Pekanbaru Branch. Competence is the most urgent thing to improve audit quality.

Pengaruh Profesionalisme, Komitmen Organisasi, Locus Of Control dan Etika Profesi Pada Kinerja Auditor

Accountant has important role on supplying a reliablle finance information for all stakeolder. To support auditor success its very important for the auditor themself to has hight quality and reliable perfomance. To assess auditor performance in public accountant are based on the auditor performance. An auditor when implamanting their duty are requred to produce a good performance. A good audit quality can be generated if an auditor is able to pay attention to the factors that influence it. Professionalism, organizational commitment, locus of control (internal) and professional ethics are some factors that may affect audit performance. This study aims to obtain empirical evidence of professionalism, organizational commitment, locus of control (internal) and professional ethics on audit performance.The location of this research was conducted at seven Public Accounting Firm in Bali Province with total sample of 66 auditors. The sample was chosen using saturated sampling technique. Data collection in this research using survey method with questionnaire technique. Data analysis technique used is Multi linear regression technique. This study show a valid result on instrument test and clasic asumtion test. Based on the analysis conducted, professionalism, organizational commitment, locus of control (internal) and professional ethics have significant and positive effect on audit performance. This study conclude that if the auditors are be able to increase their profesionalism, organizational commitment, locus of control (internal) and professional ethics their audit performance will increase al well.

Professional Scepticism, Auditor Experience, and Self-efficacy on Audit Judgement

In the performance of all audit tasks, auditors must adhere to pre-determined standards. In Indonesia, there have been cases of fraud related to auditors, including the case of fraud at SNP Finance in 2018. Such situations can arise due to incorrect audit judgment. Factors that may impact audit judgment include professional skepticism, auditor experience, and self-efficacy. A quantitative approach is used in this research. The study population consisted of auditors at public accountant firms in Bandar Lampung. During data collection, questionnaires were administered directly to external auditors. The data were analyzed using SmartPLS. The study revealed new evidence suggesting that professional skepticism only has a limited effect on aiding auditors in their audit judgments, even when combined with extensive auditor experience. This limitation can occur when the auditor has a short working period. Conversely, self-efficacy has been shown as a beneficial factor in helping auditors make well-informed audit decisions. Keywords: professional skepticism, auditor experience, self-efficacy, audit judgment