Effect of Independence, Work Experience and Competence on Audit Quality with Professional Ethics as Moderating Variable

Abstract

This study aims to examine the effect of independence, work experience and competence on audit quality with professional ethics as a moderating variable in public accounting firms in DKI Jakarta. The population in this study were all auditors at the Public Accounting Office in DKI Jakarta. The sample of this study amounted to 80 obtained from the determination of the sample using the purposive sampling method. This is a survey research with primary data derived from questionnaires distributed to the Public Accounting Firm in DKI Jakarta. Data analysis for hypothesis testing was performed using SPSS 16 with multiple linear regression and Moderated Regression Analysis. The results of this study indicate that: Work experience has a positive effect on audit quality, competence has a positive effect on audit quality, professional ethics strengthens the influence of work experience on audit quality, and professional ethics strengthens the influence of competence on audit quality.

Moderating Effect of Implementation Risk-Based Auditing on Audit Quality

“…Thus improving audit quality. This research is in line with a study conducted by research (Prasanti et al, 2019) which shows that the application of competence, if moderated by risk-based auditing, will have a positive and significant impact on audit quality. The results of hypothesis testing indicate that auditor independence will be affected by risk-based auditing, which will affect audit quality.…”

“…If the auditor is not independent of the client's leadership, his opinion will not be influential. Independence is an attitude that is free, uncontrolled, and dependent on other parties (Prasanti et al, 2019). When considering facts and expressing opinions, independence equates to transparency and fairness.…”

Self-efficacy, professional ethics, and internal audit quality

“…The result empirically supports the hypothesis predicting that professional ethics moderates the effect of self-efficacy on internal audit quality. Our findings are thus in line with (Prasanti et al, 2019) who demonstrate the moderating effect of professional ethics on the relationship between other various auditors' characteristics on audit quality. We also indicate that professional ethics fully moderate the relationship, implying that no other variables moderate the relationship.…”

Does The Characteristic Of The Supervisory Board Affect Audit Quality?

“…On the other hand, Syahfitri et al, (2019) and Sarca & Rasmini, (2019) find that work experience and independence had no effect on influence the Audit. Prasanti et al (2019), Furiady & Kurnia (2015) finds that work experience had a positive effect on audit quality. On the other hand, Kuntari et al (2017) find that work experience has no effect on audit quality.…”